2017 was quite the year for house flipping news. At the start of the year, there was a great deal of uncertainty about what the economy would do, whether a housing bubble was set to burst, and whether rehab investors would be able to find viable house flipping opportunities. But now that the year is coming to a close, all of that uncertainty has washed away, and we’re happy to say that 2017 has been an exceptional year for our company and for our clients.
Thanks to rising home prices, low inventory levels, and the ingenuity of the rehab investors that we are proud to work with every day, ZINC Financial grew 48% over the course of 2017. We also saw our loan volume increase by 40%. We have always been dedicated to underwriting house flipping loans that enable our clients to create real value and achieve their most ambitious goals. With our expansion into a joint venture program, loans for multiunit buildings, and financing options up to $1,500,000 for our most experienced clients, we have seen our business grow and succeed in tandem with the success of you, our valued clients and partners.
Many of the most exciting deals we saw this year were at the higher end of the market. With home prices still on the rise, finding an underpriced foreclosure is getting harder and harder. But in the up-and-coming neighborhoods of San Francisco, San Jose, Los Angeles, San Diego and the like, a substantial upfront investment can lead to the best ROIs in the house flipping industry. Time and again we saw our more experienced clients hone in on investment properties that others might shy away from due to the initial price tag, but these luxury market buys regularly reaped excellent profits.
For example, one of our clients purchased a home in South Pasadena for $912,000. After putting $145,000 into renovating the home – the cost of an entire house in other parts of the country – the client was able to resell the property for $1,405,705. That works out to a net profit of $348,750 or 38%. Not bad for a single flip!
As successful as 2017 was, we’re looking forward to an even more productive and successful 2018. We hope you enjoy your holidays and ring in the new year with friends and family. Then we hope you’ll get in touch with us to start planning your 2018 investments.