Rising Interest Rates Influence Fix-and-Flip Investors’ Financing Stra

The fix-and-flip market is currently brimming with opportunities for real estate investors to generate optimal return on investment. The housing inventory is depleted, demand from aspiring homebuyers is at all-time high, real estate prices are trending upwards, and investor-focused lenders like Express Capital Financing can facilitate efficient and hassle-free access to the capital you need to take on your next project. From conventional fix-and-flip to ground-up construction, there are several ways you can maximize your profit margin in virtually every market across the U.S.

These idyllic market conditions have understandably led to increased competition in the real estate industry. There is a limited supply of viable properties and a large number of interested parties contending to lock in deals. That makes it challenging to find the right transaction that matches your investment strategy. Everyone is on the lookout for that perfect potential fix-and-flip property to come onto the market.

According to data compiled by ATTOM, the number of homes acquired via cash purchase over the course of the second quarter of 2021 accounted for 59.2% of all transactions-a notable increase from the 57.6% reported during the preceding year. There is an increasing trend amongst investors in the fix-and-flip market to acquire their property assets with cash as opposed to utilizing traditional financing methods. This dynamic is driving private lending interest rates downwards as lenders everywhere attempt to acquire additional business. This is a notable opportunity for investors to lock in reliable funding with optimal terms. By working with an investor-centric lender like Express Capital Financing, you will have the luxury of tapping into needed capital when you need it, without having to worry about the delays and paperwork typically associated with obtaining a loan.

With home prices expected to level off in the coming months, it may prove harder for fix-and-flip investors to turn as big as profits as they are presently–meaning they will have to complete more projects to maintain their current revenue streams. This will only stoke the already-intense competition and prompt more investors to opt for an all-cash approach in order to minimize costs. That seemed to be the case in 2020, where the annual ratio of rehabbed properties completed using traditional funding programs saw a decline for the first time in over ten years.

This trend is becoming more and more pronounced in both the single-family and multi-family markets, with a significantly higher number of real estate investors looking for lenders to provide them with flexible bridge loans in order for them to complete multi-phase projects at a higher efficiency rate. If you are looking for an effective bridge loan product to help you close your planned fix-and-flip project, look no further than Express Capital Financing. Our bridge loan program provides attractive financing solutions to execute a short-term strategy from amounts ranging from $500,000 to $10 million. No project is too large or complex for our team of client-focused experts, who have years of experience in crafting intuitive and efficient solutions to even the most challenging issues real estate investors face.

Act Now

Ready to take the next step in your real estate investment journey? Whether you’re just starting out or are a seasoned investor looking to diversify your asset portfolio with an additional property, the experts at Express Capital Financing have one goal in mind: getting you the money you need, when you need it. In today’s current market, speed is often the determinant factor when it comes to who locks in the best deal. We specialize in providing you reliable access to capital in a fraction of the time it takes for conventional lenders. Get in touch with us today to learn more about how we can help you invest with confidence.