While the fix-and-flip market was hot in recent years, 2020 has seen a major decrease in returns for investment property flippers as a consequence of increasing costs and a banking crisis. Despite this, some investors are still showing interest in fix-and-flip and bridge loan investments.
However, it has become more difficult to secure financing for these types of investments due to banking crisis this year. Flippers may be asked to provide additional information when submitting loan applications, and they must demonstrate the ability to service the loan at the longer duration than usual. Additionally, some lenders have imposed higher interest rates and fees than in the past, making this an even tougher market for flippers.
Significant Points:
• Decreased returns for flippers in 2020
• Difficulty securing financing for fix-and-flip and bridge loan investments
• Borrowers must prove ability to repay loan
• Interest rates and fees are higher than in the past
You can read this full article at: https://www.housingwire.com/articles/what-does-the-fix-and-flip-market-look-like-right-now/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
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