The flippers are back and the competition fierce as there are fewer and fewer foreclosed properties to bid on. Haven’t we been down this road before?
As the competition heats up, Lending to House Flippers Hits a 13-Year High.
Smart to Use Leverage!?
Vipin Motwani an investor with Iron Gate Development in the Washington, D.C. area expects to flip about 15 homes this year.
“It’s always smarter to use a mortgage because you get leverage, you can do many more deals, right?” said Motwani. “Also the banks have become a little bit more easy in lending on this flip business. It used to be a lot tougher.”
Housing Bubble Reblown
The Fed has re-blown the housing bubble.
The Last Chance for a Good Price Was 7 Years Ago
Yet, it’s “always smarter to use leverage to get more deals.”
What can possibly go wrong?