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$50 million this year to fund his ever- expanding real estate empire. His firm sells half of the purchases to other investors, keeping the rest for his own rental portfolio. He also manages rentals for passive real estate investors.
U.S. HOME FLIPPING BY PRICE RANGE, Q1 2016
“We’ve raised over $13 million from RealtyShares alone in just two years,” he said.
Sifakis said that in addition to hard money lenders, his firm has increasingly relied of online real estate crowdfunding sites like Dominion , Genesis Capital , RealtyShares , and other short-term money-lending firms. In addition to these and other crowdfunding sites, some of the nation’s largest Wall Street investment banks and private equity firms — including Cerberus Capital and Colony Capital — have started making short-term bridge loans to investors who buy homes to quickly flip them for a profit.
Anytime we need money it’s only 12 hours away. It’s pretty amazing. We’ve raised over $13 million from RealtyShares alone in just two years.” Alex Sifakis | President of JWB Real Estate Capital Jacksonville, FL
“These firms are big players in the residential real estate market,” he said.
Markets with the highest flipping rate in the second quarter of 2016 were Memphis (11.1 percent); Visalia- Porterville, California (10.1 percent), Tampa (10.0 percent); York-Hanover, Pennsylvania (9.7 percent); and Mobile, Alabama (9.6 percent). Not only is the flipping industry large and growing but new players are moving into the space.
said over the last few years his company has increasingly borrowed money from crowdfunding sources. When he needs a few million dollars to purchase the 50 to 60 properties his company buys every month, he simply turns to online crowdfunding sites. “Anytime we need money it’s only 12 hours away,” said Sifakis, whose company manages over 1,300 rental properties for clients, of which 400 are owned by JWB. “It’s pretty amazing.”
But Sifakis said it’s getting harder to find good deals and it cost more to find them.
“It’s getting harder to find houses,” said Sifakis. “Two years ago, we would find 80 percent of our acquisitions on the MLS. Now the cost of acquisition has increased because we have to spend more money on marketing and locating properties to purchase. The margins are getting compressed.”
Serial flipper and real estate investor Alex Sifakis, president of JWB Real Estate Capital in Jacksonville, Florida,
Sifakis estimates his firm will need
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