According to the Wall Street Journal, this is a great time to be in the house flipping business. That’s because the number of investors who flipped a house in the first nine months of 2016 has reached levels not seen since the “pre-crisis” 2007 days.
One great indicator of this momentum? A third of all deals are being financed with debt, a percentage not seen in eight years.
Recognized in the article as one of the beneficiaries is our own Anchor Loans, which has received more than $220 million in new credit facilities and is on track to originate $1.1 billion in loans to real-estate investors in 2016, up from $713 million in 2015. Anchor’s accomplishment in eclipsing the $1 billion loan origination barrier in a single year is an industry first, and yet another strong sign of the times.
All of this is a big change from the early days of the financial crisis, when big banks were reluctant to fund house flipping opportunities. But with today’s improved market conditions and housing pricing, our CEO Stephen Pollack put it best, “For the first time in our history, we actually have enough money to lend.”