The real estate market has gone through a mini revival of late, which has partly been due to the fact that more investors are now finding the art of house flipping to be beneficial in the market. The primary reason for that is the banks do not provide short term loans and quick financing, so investors are now turning to money lenders to provide them money for house flipping.Realtors consider house flipping mutually beneficial due to the fact that they can take a property and revive it with the money borrowed, which will lead to an increase in the value of the property.
The housing data company, Realty Trac, has found that since 2011, nearly 40 percent of homes across the United States have been flipped and sold for values which exceed $1 million or more. This has shown the increase in popularity of flipping homes amongst realtors, which enables them to focus on foreclosed homes coming from lower to middle-class and up and coming blue collar neighborhoods, that were refurbished, put on the market and sold.
A house which is bought and sold within six months qualifies as a flipped home. With figures showing healthy sales of houses in the country since 2011, it comes as no surprise that more investors and realtors are getting interested in house flipping.
The stock market has also played a part in turning around the fortunes of the real estate industry, with Wall Street investors and firms, heavily involved in lending money to Realtors for flipping homes.
The general consensus among everyone is that the housing market is recovering after the crash of 2006, which is why more people are willing to gamble and invest money on flipping houses. The stats speak for themselves and billions are now being spent on houses, which are then sold off quickly. The benefit of house flipping also lies in the fact that the value of a home can jump by 75 percent when it is flipped which appeals to the upper end class to buy them.
The market for houses is going through the roof at the moment, with people buying houses and then selling them after flipping for a 20-30 percent profit. The industry has also been helped by foreign investment, which has pumped billions in the US real estate industry. The National Association of Realtors released figures which showed that investors from China spent $12 billion on the US property market last year, which places it second behind Canada as the biggest foreign investor.
