Home flippers get creative as competition heats up
Thursday, November 5, 2015
Posted by: Elizabeth Nicholas
Home flippers get creative as competition heats up - CNBC
October 30, 2015
Property flipping in today's rocky housing recovery means staying one step ahead of the game — a game that is becoming increasingly cutthroat. Foreclosures are drying up and cash-heavy hedge funds are still buying low-end properties to rent. For a home flipper, someone who buys and sells a home in the same calendar year, the pickings are ever slimmer, but the profit can still be high.
"Investors are finding creative ways to pinpoint potential flips in the off-market arena, and on the disposition side investors have a bigger pool of potential buyers thanks to a surge in FHA buyers this year, many of them first-time buyers looking for starter homes," said Daren Blomquist, vice president at RealtyTrac, a foreclosure listing and analytics company.
The share of homes flipped jumped 18 percent nationally in the third quarter of this year, compared to a year ago, according to a new report from RealtyTrac. Gross profit moved slightly higher.