Investors are taking notice as the house flipping market gains steam, due in part to rising home prices and low interest rates.
According to national property database ATTOM Data Solutions, 2016 saw the highest level of flip home sales in ten years at 5.7 percent. The rise in home flipping has further energized the financing industry for flippers; as CNBC reports, Goldman Sachs bought leading lender Genesis Capital.
Hard-money lenders boast of the speed in which they finance loans, typically in less than a week, compared to several months for a traditional bank. For the smaller builders and house flippers who rely on these loans to do business, the speed with which these lenders can have the money ready trumps the high interest rates they charge.
Advertisement
Related Stories
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?
Building Materials
Lumber Leads Building Materials Prices Higher in March
Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops
Demographics
Post-Pandemic Trends: Working From Home
A greater share of workers are still working from home than before the pandemic and they're concentrated in the information, professional, and financial services sectors
