Investors are taking notice as the house flipping market gains steam, due in part to rising home prices and low interest rates.
According to national property database ATTOM Data Solutions, 2016 saw the highest level of flip home sales in ten years at 5.7 percent. The rise in home flipping has further energized the financing industry for flippers; as CNBC reports, Goldman Sachs bought leading lender Genesis Capital.
Hard-money lenders boast of the speed in which they finance loans, typically in less than a week, compared to several months for a traditional bank. For the smaller builders and house flippers who rely on these loans to do business, the speed with which these lenders can have the money ready trumps the high interest rates they charge.
