Risk Management Considerations During the Fix and Flip by Shawn Woedl While high housing prices and increased cost of materials has led to a drop in house flipping in the first quarter of 2021, it is still expected to be a profitable venture. Though purchase prices are high, the aggressive market also means buyers will be lined up when the flip is complete. Plus, distressed inventory is expected to surge
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by Eric Atlas Residential Investment Loans (“RILs”) are business purpose loans secured by “fix and flip” or rental properties owned by professional investors and secured by 1st lien mortgages. Bridge loans are short-term loans (usually 6 to 24-months in duration, with an average life of less than a year) to property investors who buy, renovate, and sell homes for profit (the aforementioned fix and flip investments) or lease, refinance and
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Looking for Stabilization, Growth in 2021 and Forward by Carole VanSickle Ellis Like most of the country right now, the Springfield, Massachusetts, housing market is hot. Median sales prices rose more than 17% in the Springfield area between January 2020 and January 2021, and Realtor.com reported in May that homes were selling, on average, for 2.63%above listing price. However, there are some signs that the Springfield market could “stabilize”as early
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Flip Factory App Solves the Flipping “Cashflow Problem” from Inside the Industry by Carole VanSickle Ellis When Raleigh-based flippers and general contractors Jake Harris and Juan Huerta invented the Flip Factory App, they were aiming for a solution to one of the oldest problems in the fix-and-flip industry: cashflow. “There is one key component in real estate without which nothing else functions,” Harris explained. “Before we could solve any other
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What SFR Investors Can Learn From iBuyers by Josh Jensen The process of buying and selling homes is complex and there is plenty of room for improvement. In today’s lightning-fast market, investors need all the help they can get. Low housing inventory and record-high buyer demand have created a frenzy in the U.S. real estate market. And it is not just the COVID-19 pandemic that is causing the demand. Millennials
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But Help Is on the Way…Eventually by Rick Sharga Most fix-and-flip investors will agree that a housing market with high demand, low supply, low-cost capital, and rising prices is their ideal scenario. And generally speaking, that characterizes today’s market. But like many generalizations, this one does not hold up well upon further scrutiny. Partly, this is due to excesses in all the categories mentioned above. Supply of homes for sale—both
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