HOUSINGNEWS REPORT
FEATURED ARTICLE
costs, carrying cost and miscellaneous expenses. They sold the unit for $2.7 million. But Seymour worries the real estate market is due for a shift. “I’m anticipating a correction,” he said, concerned about rising home prices, multiple offers and the return of easy mortgages. “It’s gone silly again. I’m cashing out. And I’m going to wait for the downswing. Then, I’m going to be buying like a monkey.” Paul Deitch, chief executive officer of Patch of Land , said flippers are increasingly doing more high-end flips, requiring more capital. who come to us specifically for financing,” said Deitch, a former managing director at Oaktree Capital. “We’ve observed that with the strong growth in many markets, these entrepreneurs want to do more deals and want to lever up in order to diversify across multiple projects, instead of concentrating all their cash into one single project. Also, in certain markets like L.A. they are doing bigger deals, which require more money; these are deals “As a lending platform we work with many people who are rehabbing, and
in higher end markets and executed by savvier entrepreneurs who are also more experienced in obtaining financing to scale their businesses.” Deitch said the firm has focused on one- year residential purchase and rehab loans under $1 million. But flush with new capital, it is now looking to expand its range. “The early platforms like Patch of Land, RealtyMogul, Fundrise and RealtyShares have evolved to specialize in certain asset classes or product types,” said Deitch. “For example, we only do debt products — we lend on single family, multifamily and commercial bridge. Others, like RealtyMogul now focus on raising equity on large commercial projects and do not do any fix-and-flip lending.” Flipped Out Higher home prices in the nation’s capital haven’t put an end to home flipping in the Washington D.C. area, according to Arlington, Virginia, serial flipper Lance Young, who uses his own cash and hard money to rehab row houses, condos, townhouses
Get all the Facts Before You Buy
Criminal & Sex Offenders Former Local Drug Labs Nearby Hazardous Sites Quality of Schools Property / Loan Information
As a lending platform we work with many people who are rehabbing, and who come to us specifically for financing.” Paul Deitch | CEO of Patch of Land Los Angeles, CA
Get My Free Report
ATTOM Data Solutions • P5
Made with FlippingBook Online newsletter