Company News

Fix and Flip deals are roaring back

April 15th, 2019 6:00 PM by Andrew Liu, President NMLS#249736

According to Wall Street Journal, last December, among all the real estate sales, fix & flip transactions counted about 10% of the total transactions nationwide.  That was about the same level as when it was in 2006.

Seems that softening of real estate market price of late last year, helped to make this trend.

As of this year, this trend would most likely to continue.  There are certainly more inventories are on the market right now( https://www.redfin.com/blog/data-center/).  As of February of 2019, real estate inventory has increased about 3% compared to February of 2018.  Homeowners have been holding on their homes and not to move for quite sometimes. Why?  They have refinanced their mortgages repeatedly in the past years, ended up with very low 30 years fixed rates. If they move, they would find themselves getting into a lot higher interest rates and monthly payments.

Fed has indicated that it would be most likely be done with the rate increase 2019, and the bond prices have come back down.  Mortgage interest rate has been come back down since early this year, and most likely would stay low for the rest of the year.

Therefore, the current market condition is ideal for fix & flips.

We have gotten a lot of inquires about our fix and flip loan programs: we are offering a program that would let the investor borrow up to 85% of the purchase price (properties that cannot qualified for conventional loans), plus up to 100% of the repair cost.  Investors love this program, why? They all understand that it is the smartest way to use other people‚Äôs money to make money themselves.

Posted in:Fix and Flip Loans and tagged: FixandFliploans
Posted by Andrew Liu, President NMLS#249736 on April 15th, 2019 6:00 PM

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Pacificwide Lending

CA License #01762647 NMLS#241222, TX License #241222, FL License # MBR 3291

7041 Koll Center Pkwy Ste 270 Ste 270
Pleasanton, CA 94566