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