HOUSINGNEWS REPORT
PRIVATE LENDING GOES PUBLIC
U.S. HOME FLIPPING GROSS PROFITS & RETURNS
AVG GROSS PROFIT PER FLIP
AVG GROSS FLIPPING ROI
60%
$80,000
$70,000
50%
$60,000
40%
$50,000
30%
$40,000
$30,000
20%
$20,000
10%
$10,000
0%
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
“Typical bank products do not service investors for many reasons, both in product eligibility and speed of execution. Private lenders fill a much-needed gap where banks are unable to service the industry.”
STEPHEN POLLACK CEO, ANCHOR LOANS, LP
efforts, which helps improve all aspects of our business, especially the firm’s risk management and business development capabilities,” said Stavinsky. “We believe a data-driven culture produces a better service and product for all our stakeholders.” A key competitive advantage for private lenders is the ability to move quickly with a financing request, to fund in days instead of weeks or even months.
The use of hyper-local, hyper-now, property-specific data is allowing private lenders to make pinpoint financing decisions quickly and with great confidence. “There is a common misconception that private lenders like us only exist to service borrowers that have bad credit or are otherwise ‘unbankable,’” said Eric Krattenstein, chief marketing officer and head of sales with Asset
Based Lending, LLC. “In fact, the opposite is true. Most of our borrowers are perfectly bankable, but very few programs exist for investors. The few bank programs that do exist take eight to 10 weeks to close, where we can do it in eight to 10 days or less! Speed is the name of the game in this business.”
“Typical bank products do not service investors for many reasons, both
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APRIL 2018 | ATTOM DATA SOLUTIONS
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