According to Scotsman Guide News, today’s fix-and-flip market shouldn’t be confused with the one that overheated and crashed a decade ago.
Back then it was about inexperienced investors who were betting solely on price appreciation by buying properties in markets that they didn’t live near or understand.
Today on the other hand, it’s about people finding good properties at a discount in markets they carefully focus on, and then doing the necessary renovations. Their reward? Average profits last year of $62k above the median sales price of $127k according to Attom Data Solutions.
In places like Chicago where there are still numerous properties, rehabbing and flipping for a profit are the norm vs. tear-downs.
Tight inventories and rising home prices have contributed to the lift in activity, but that presents other challenges – like needing to look at off-market inventory sources to find good properties, and/or considering whether a market’s location and accessibility level dictates that total tear-downs are more the norm versus rehabs.
The article offers perspective from several different participants in the fix-and-flip market, including Daren Blomquist, senior vice president with Attom Data Solutions. “The easy part of flipping these days is selling the property. The hard part is buying it. When we talk to flippers, the buzzword for them is to find inventory that is off-market.”
With over 125k businesses and individuals completing a flip in 2016, financing for those deals has reached a 9-year high at just under 33%. This growth is fueled in part by more sophisticated fix and flip lenders and lending platforms that make cash available quickly, and on great terms, based on the merits of the property and not the borrower.
Fix and Flip Financing and Loans
Are you interested in faster loan closings, lower risk, and growing your fix-and-flip business? Get our free step-by-step Fix-and-Flip Borr3owers Guide for driving ROI and growth.
Ready to bridge loan finance your next fix and flip property? Anchor Loans has funded more than 14,000 short-term loans totaling over $4 billion— the majority of them to borrowers with less than perfect credit. Click here to apply for a loan or get a quick estimate.