Real estate data firm RealtyTrac has released exciting new data for house flipping professionals. While the total percentage of homes flipped in the United States went down from 4.1% in the fourth quarter of 2013 to 3.7% in the first quarter of 2014, the gross profit house flippers earned over the same period went up substantially.
In the first quarter of this year, house flippers made an unadjusted ROI of 30% per flip, on average. That’s a 2% increase over the same period one year ago.
RealtyTrac VP Dan Blomquist noted that house flippers are being much smarter in their house flipping strategies this time around than they were before the last housing boom. Investors are being smart about which homes they choose to go after, what remodels they put in place, and how much they choose to invest. The formula is clearly working for house flipping professionals who are finding success throughout the state of California, among other major metropolitan areas.
Nationwide, the metropolitan areas with the highest number of flips in the first quarter of 2014 were New York with 1,791, Phoenix with 894, Los Angeles with 828, Miami with 749, and Riverside/San Bernardino with 627. RealtyTrac found that 43% of all properties flipped in the first quarter were sold to buyers in all-cash sales.
It’s true that the jump in home prices from last year has started to slow down in 2014, but this isn’t deterring the success of smart house flippers. Home prices are still on the rise, and construction of new homes is quite slow, creating a situation where the homes that are on the market are frequently being purchased for well over asking price, particularly in hot markets like San Francisco, Fresno, and Los Angeles. Investors who are doing best in the current marketplace are those that have residential rehab financing in place before they search for investment properties. All-cash deals are the name of the game, so a strong financial partner, like ZINC Financial, is essential to real estate rehabbing success.
Currently, our company is offering $750.00 off fees for first-time loans to new clients and $1,000.00 off loans for existing clients with a referral. Contact ZINC today to learn more about these special offers by calling 559.326.2509.