Farley on Nostr: ### House Flipping This mindset reveals a deeper problem in real estate investment ...
### House Flipping
This mindset reveals a deeper problem in real estate investment today: profit through surface-level improvements rather than meaningful enhancement of quality or value. Many investors engage in what's sometimes called "cosmetic flipping," where they perform minimal repairs or superficial updates—like slapping on new paint, replacing flooring, or adding trendy finishes—without addressing underlying structural issues or genuinely improving the property's function or durability. Then, these properties are sold at significantly inflated prices, with the assumption that these minimal efforts justify the markup.
This approach reflects the broader distortion in asset valuation, driven not by a genuine increase in value but by a financial culture prioritizing short-term gain. In reality, these superficial fixes don’t add lasting value to the property and often require new buyers to invest more time and resources in real maintenance. Yet, the inflated prices persist due to market demand, cheap credit, and a mentality focused on quick profits rather than genuine value creation.
It’s a symptom of the same inflation-driven illusion that makes people think a house is “worth” hundreds of thousands, if not millions, of dollars—when much of that worth is either cosmetic or derived from fiat currency devaluation, rather than substantial improvements or additions to the property’s quality.
This mindset reveals a deeper problem in real estate investment today: profit through surface-level improvements rather than meaningful enhancement of quality or value. Many investors engage in what's sometimes called "cosmetic flipping," where they perform minimal repairs or superficial updates—like slapping on new paint, replacing flooring, or adding trendy finishes—without addressing underlying structural issues or genuinely improving the property's function or durability. Then, these properties are sold at significantly inflated prices, with the assumption that these minimal efforts justify the markup.
This approach reflects the broader distortion in asset valuation, driven not by a genuine increase in value but by a financial culture prioritizing short-term gain. In reality, these superficial fixes don’t add lasting value to the property and often require new buyers to invest more time and resources in real maintenance. Yet, the inflated prices persist due to market demand, cheap credit, and a mentality focused on quick profits rather than genuine value creation.
It’s a symptom of the same inflation-driven illusion that makes people think a house is “worth” hundreds of thousands, if not millions, of dollars—when much of that worth is either cosmetic or derived from fiat currency devaluation, rather than substantial improvements or additions to the property’s quality.