How has the current US Real Estate financing market affected your flipping? It seems that pain in the money market is unevenly spread, and hitting some markets pretty hard.
Thomas Lawler of Lawler Economic and Housing Consulting has outlined the following issues:
Thomas Lawler of Lawler Economic and Housing Consulting has outlined the following issues:
- Recent drastic tightening is worst in California, Nevada, Florida, Hawaii, Arizona, Rhode Island, and New York.
- Risky loans are increasingly harder to get and are becoming available only to strong buyers at higher rates.
How does this impact flipping? Well the labor day kick off of our autumn home shopping season hasn't been as strong as other years. People buying before the holidays are feeling the crunch as money becomes tight.
US Lenders have been cautious with the subprimes, sticking to conforming loans under $417,000 USD. Even then, buyers need good credit and enough savings for either conforming or subprime (which are now few and far between). Jumbos are terrible, as rates are jacked up.
Flipping in these conditions can beg the question, where are the ideal places to flip right now? We know they're out there, and possible avoiding some of this real estate financing pain.