HOUSINGNEWS REPORT
PRIVATE LENDING GOES PUBLIC
U.S. HOME FLIPPING FINANCING TRENDS
TOTAL FINANCED PURCHASE DOLLAR VOLUME
PCT PURCHASED WITH FINANCING
70%
$60M
60%
$50M
50%
$40M
40%
$30M
30%
$20M
20%
$10M
10%
0% 2000 2002 2004 2006 2008 2010 2012 2014 2016
$0M
Not quite as good as 2016 when the flipping ROI hit a record 51.9 percent, but still the second-highest average home flipping ROI since 2000 — the furthest back data is available. ATTOM reports that 207,088 U.S. single family homes and condos were flipped in 2017 and of this number 34.8 percent were financed — a total of 72,000 units. The dollar volume for financed flips was $16.1 billion, up 27 percent from 2016 to a 10-year high. Technology-Fueled Growth Where traditional lenders fear to tread others see demand. Private lenders — individuals and organizations which make investment real estate loans to borrowers who otherwise cannot get financing — are looking for a bigger share of the marketplace. And they seem to be getting it. “We aren’t surprised that the dollar volume and share of financed flips are hitting new highs,” said Matt Humphrey, co-founder and CEO of
“Online lenders like us exist because banks and large lenders don’t play in this space, and they aren’t using technology to be efficient, nimble and fast. Now that investors have digital-native lenders catering to them, financing becomes an attractive alternative to cash. We predict this trend will continue because 2018 is already off to an incredible start for us.”
MATT HUMPHREY CO-FOUNDER AND CEO, LENDINGHOME
LendingHome, which saw a nearly 70 percent increase in its dollar volume of loans to home flippers who completed a flip in 2017 and a 50 percent increase in the number of loan originations, according to an ATTOM analysis of select fix-and-flip lenders. “Online lenders like us exist because banks and large lenders don’t play in this space, and they aren’t using technology to be efficient, nimble and fast. Now that investors have digital-native lenders catering to them, financing becomes an attractive alternative to cash. We predict this
trend will continue because 2018 is already off to an incredible start for us.”
The ATTOM analysis shows another national fix-and-flip lender, Roc, saw a more than 100 percent jump in loan originations to home flippers who completed a flip in 2017, an increase that Roc co-founder and COO Maksim Stavinsky attributes in part to data- driven culture.
“At Roc, we are continuing to build out and benefit from our data science
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APRIL 2018 | ATTOM DATA SOLUTIONS
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