As US home prices rise, flipping makes a comeback

Online lenders like LendingHome fuel the boom

TRD New York /
Dec.December 28, 2016 09:15 AM

House flipping is back, and a growing number of banks are jumping on the trend.

The number of flipped homes in the U.S. reached the highest level since 2007 in the first nine months of the year, thanks to rising home prices and growing investor confidence.  The average profit on flips is now $61,000, up from $19,000 in 2009, the Wall Street Journal reported.

With profits on the rise, lenders see an opening. Wells Fargo, Goldman Sachs and JPMorgan Chase have all begun extending credit lines to lenders that back home flippers. Two of those lenders are LendingHome and Asset Avenue, California startups that allow house flippers to borrow over the internet. LendingHome claims to have issued $1 billion in loans since its launch in 2014.

Anchor Loans, one of the largest lenders to home flippers, said it expects to originate $1.1 billion in loans this year, up from $713 million last year.

A third of house flips are now funded by debt, but the overall market remains small. Sources told the Journal that several hundred millions of dollars worth of home-flipping have closed in recent months.

“Anybody and everybody is getting into the business of house-flipping—that’s when you know it’s the end of the rope,” California-based real estate agent and home flipper George Geronsin told the Journal. [WSJ]Konrad Putzier 


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Ghislaine Maxwell and her New Hampshire estate (Getty, Greg Bruce Hubbard)

Ghislaine Maxwell was hiding out in a rural New Hampshire estate when she was arrested

Ghislaine Maxwell was hiding out in a rural New Hampshire estate when she was arrested
Amancio Ortega (Getty)

Spain’s richest man owns $17B in real estate

Spain’s richest man owns $17B in real estate
Juno CEO Jonathan Scherr and a rendering of the project 

Former Apple and Tesla employees launch mass production development company

Former Apple and Tesla employees launch mass production development company
Mayor Bill de Blasio (Getty, Wikimedia)

Landlords challenge city laws protecting non-paying businesses

Landlords challenge city laws protecting non-paying businesses
(iStock)

Crossbow-wielding manager sexually harassed WeWork staffer, latest discrimination suit claims

Crossbow-wielding manager sexually harassed WeWork staffer, latest discrimination suit claims
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...