A recent article in the Scotsman Guide discussed how competition for financing has become the latest challenge for home flippers across the nation. According to the article, the percentage share of financed flips has increased to a 9-year high and along with that, lenders have been fiercely competing to fund their deals. In addition, they point out that home values have hit new peaks in several markets, which they say is good news for flippers, and that a shortage of low to median-priced homes has also meant listings are selling in less than a month in some markets.
“A deeper bench of private lenders is now operating in the fix-and-flip space, including several large national lenders. The end result is that the cost of the short-term loans used by home flippers has been dropping, and the percentage share of financed home flips has increased.”