Number of Investors Flipping Homes Hits Pre-crisis Levels

[James Triano]

According to a new article in the Wall Street Journal today, the number of investors flipping homes has reached a level not yet seen since 2007.   The article also goes to state that the average profit for a flip is now $61,000 vs. a low of $19,000 in 2009.  Funding for this activity is also being supported by bigger and bigger banks which have started lending in the flipping sphere again. 

These kind of numbers are giving me pause about plans for 2017/2018 as I've begun to flip houses.  This sort of "mainstream" coverage is exactly what got folks into over-leveraged and under-analyzed deals that led to the financial crisis of 2008 & 2009.  I know the market in my area has picked up slightly but it's not necessarily the boom and bust type of market like many of the Atlantic and Pacific coastal cities.  

As we approach the new year, it may be a good time for all of us to take pause and re-evaluate the macro environment and ensure we're really digging into our numbers and get after it while the "gettin' is good."

Link to the article

[Scott Hollister]

Hello @James Triano,

I cannot read the article, had to sign in. However I would start asking questions about the validity of the article. What was the population size? Location? Writers have any REI knowledge? Etc.

I think its also important to know your investing strategy, wise investors make money during crashes because everyone is running scared.  What can you do to win?

• If you really believe there will be a crash then start unloading your properties so you have the liquid to scoop up the foreclosures. 

Don't pause your plan unless you don't believe in your plans. My advice would be to adjust your plans to keep yourself in the game. You could be leaving a lot of money on the table. But I do agree with you, always pause and re-evaluate as you grow. Well said James!