Home flipping sure isn’t the same as it used to be, but it’s also more popular than ever. See, there are more home flippers out there than almost ever before, according to research from CoreLogic, but today’s home flippers are holding onto properties for longer. Interestingly, home flippers are holding into homes for longer in part so that it can be considered owner-occupied and eligible for capital gains exceptions. Obviously, you can only occupy one home as your primary residence, but this trend is adding to the flipping scene. In the last quarter of last year, home flipping accounted for more than one-tenth of all home sales.
Another way the home flipping market has changed is that profitability has also risen. The researchers didn’t take into consideration capital expenses at all, but they say that the annualized return on sales are growing. Before the Great Recession, home flippers relied heavily on speculation and rising prices to get a return. Since then, home flippers have gotten better at finding houses at a discount because they were tied up in legal issues, financial problems or physically distressed. So, these days, it seems that instead of speculating, home flippers are more busy adding value to homes. That makes these investments more sustainable.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.