Investors... that simple word throws most Realtors into a frenzy. Often they are cash buyers looking to buy something right away. It can mean 2 transactions... one when they buy it and another when the flip is done and ready to sell. On paper it seems like a great thing, especially if you're looking at flip after flip after flip.

Unless you are a friend or family member, we will no longer work with investors who flip homes. Our time and knowledge is worth more than they can afford to pay. We have tried it before and made some investors a lot of money. We didn't like the situations that were occurring because no matter how fast and accurate we are, the investor has to listen to us to maximize profits. It's easy to hear the $$$ and not the words leading up to the $$$. 

Finding the deals and getting them are the hard part for us as Realtors, but we learn many things over time that give our clients an advantage. It's still a challenge for us when there is a potential profit margin of 19% and we're told to keep looking because the investor would like 20%. I understand it's a business they are running as an investor, but where we will not see eye to eye is when I respond with "I'm running a business too".

The reason we limit flipping to friends and family is because we know they will meet standards of quality we require, and in the process they will listen to our advice. The approach isn't just about the money, it's about providing a buyer with a great home that will last a long time.

The buyers of these homes are happier because we can show them everything that was done and how it was done to justify that comfort they felt in the home. Homes sell in just a few days because we don't try to see if buyers really want certain upgrades or not... we just do them up front. It may cost more, but it's less time on market.

There are close to 3,000 Realtors in our area currently... many of whom did not sell a house last year... and they are craving the chance to work with an investor who flips homes. I'm not sure what kind of advantage they will provide, but if we are their competition I'd bet on it being a not so great advantage.