Top 3 Reasons Why Today’s Market is Lucrative for Fix and Flips

While some investors believe it is easier to fix and flip homes in a down market, that is not necessarily the case. Today’s real estate market is actually ideal for real estate investors because the current exit strategy for fix and flips is extremely strong. While there has been low inventory and tight compressions, these factors can actually benefit investors on the backend. For example, our current market has high liquidity, which creates desirability. Therefore investors have the ability to have a quick and efficient exit strategy. There are many factors that can make or break the fix and flip strategy. But despite all of the hardships that faced this year, our current market is still lucrative for investors.

ZINC’s borrowers have seen great success in today’s market and our portfolio performance has been outstanding. But don’t just take our word for it, here are the top 3 reasons why today’s market is ideal for fix and fips:

  1. An increase in profits- ATTOM Data Solutions reported that fix and flip profits have hit an all-time high of $66,300 gross profit compared to $62,188 in 2019. Despite low inventory and an increase in home prices, investors are still reaping the benefits of investment properties in the current market. This can be attributed to families leaving big cities in times of the pandemic and the strength in the profit margin of a flip. 
  2. Predictable returns- While the stock market turns on a dime, the fix and flip market is much more predictable. Investing in a fix and flip comes with far less risk than investing in stock or bonds because flips are short-term and investors go into the investment with a defined exit strategy.
  3. Quick return- When it comes to a fix and flip, investors profit quickly. A flip takes anywhere from 3-6 months. This quick return can create financial independence for many investors and with experience can be a stagnant stream of income. 

Now is the time to get involved in the fix and flip industry! Whether you are new to this or you have some experience in the industry, ZINC has you covered. We have rates as low as 7.49% and lend regardless of experience! ZINC cares about your investment as much as you. Click here to apply for one of our amazing loan programs!