U.S. HOME FLIPPING HISTORICAL TREND Single Family Home Condos Flipped
Home Flipping Rate (Pct of Total Sales)
I use everything in my power to use other people’s money. We typically don’t use our own money.”
Dave Seymour Professional flipper Boston, MA
But there are perils inherent in hard- money lending, which is often a final option for borrowers who can’t qualify for bank loans. The term “hard-money” lending can be traced to the Great Depression when private individuals started lending money because many banks had folded.
generated an average gross profit of $835,678, creating 42 percent in gross ROI.
With buyers outnumbering sellers, investors like Seymour and Souhleris are clamoring for the small number of available houses in the Boston area. With inventory tight and prices rising, Seymour said it’s hard to find good properties. “Here in Boston, the MLS inventory isn’t there,” said Seymour, originally from England and a retiree from the Lynn (Massachusetts) Fire Department. “But I have seen an increase in short sales. One theory I have is that home equity lines of credit (HELOCs) are coming due and borrowers are defaulting. I also believe shadow inventory is beginning to show up.” Recently the demo duo purchased a condo for $1.5 million. They put in another $500,000 in rehab construction
Wicked Smart Money by ‘Flipping Boston’ In Boston, professional flippers Dave Seymour and Peter Souhleris, stars of A&E’s television show “ Flipping Boston ,” and partners in the real estate brokerage CityLight Homes , are hooked on the flipping game. High prices and low inventory makes these heady days for flippers like Seymour and Souhleris. “I use everything in my power to use other people’s money,” said Seymour, who with his partner flips 12 to 20 houses a year using hard money lenders and private lenders. “We typically don’t use our own money.”
Not only are home flips rising — but they’re going upscale too.
Million Dollar Flips Flips of homes priced at $1 million or higher are more profitable than entry- level quick-turn properties. The average gross profit for a flip sold between $1 and $2 million is $366,466, generating a 37 percent gross return on investment, according ATTOM Data Solutions . And flips sold between $2 and $5 million
ATTOM Data Solutions • P4
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