Home Flipping Is Cooling Off

Investing in fix and flips is an asset class which has attracted billions of dollars; last year there were about $20 billion in fix and flip loans, up 37% from 2016 and double the amount from five years ago; there are an estimated 8,300 hard money lenders and private money lenders, up 40% since 2016; even big financial institutions like Blackstone and Goldman have allocated capital to the sector due to the attractive returns between 8-12%; however increasing home prices have shrunk the return that flippers can make which is having an effect on those financing the loans; the article shares several perspectives on the market including those from the real estate crowdfunding company Groundfloor. Source

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