It became such a hot subject, network TV programs and "advertorial" features focused on the practice, creating even more hype. And a national franchise group was formed to assist flippers -- for a fee, of course.
Flipping never worked successfully for many investors.
They just didn't have the real estate savvy to bring all the elements together productively.
Others did indeed make substantial profits when the market was booming. But today, the dynamics of the real estate market have drastically changed.
The demand for housing has dropped dramatically. The number of unsold resale homes on the market is at an all-time high. Prices are dropping while mortgage interest rates are slowly rising, despite periodic rate drops.
Moody's , a private research firm, is forecasting home price declines of up to 20 percent over the next year in some markets. The firm projects a 3.6 percent decline next year in national median home prices.
That would be the first price decline in a year since the Great Depression.
Today's market holds little potential for profit in flipping houses -- particularly for those who invest their hard-earned savings and know little about complex property transactions and related negotiations. And if a broker is involved, his commission will take a big chunk out of any profits.
"Flipping may look easy, fun and exciting on TV," said Scott Frank, co-author of a new book on real estate investing. "But remember, TV is entertainment. The real world can be anything but.
I've found that most of the time people who jump into flipping real estate based on TV programs or hearsay from friends never fully know what they are getting themselves into.
"Most people want to get into house flipping to make a quick buck. It usually doesn't take long to find out that, while that is possible in real estate, fast profits are the exception rather than the rule.
Success rarely comes easy."
Frank's book, titled Buy Even Lower: The Regular People's Guide to Real Estate Riches, points out how flipping can be extremely time-consuming.
"When an investor first decides to try a hand at house flipping, many think they will put in whatever time and effort is needed to make their dreams come true.
Or they think because real estate investing is going to be a hobby, they will simply dip into their hobby-time bucket to do it.
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