> Fix-And-Flip Financing Is Finally Getting A Much-Needed Update

Resource Center

The latest real estate crowdfunding news and resources

Fix-And-Flip Financing Is Finally Getting A Much-Needed Update

With big-name development projects hogging the spotlight, the wave of small development projects sweeping across the U.S. has largely gone unnoticed. “Fix-and-flip” financed properties make up almost 6% of national residential sales, according to Attom Data. In certain markets, flippers account for a third of all residential units sold.

Despite the growing popularity of flipping residential and multifamily properties, the hard-money lending that flippers rely on to finance their purchases has remained stubbornly archaic. But a few operators are now offering new ways to finance the small projects that are becoming the norm.

Fixing and flipping properties has been a great business model for years, but hard-money lenders have kept the industry from really taking off,” said Michael Ramin, director of business development at Sharestates, a real estate crowdfunding platform that has financed thousands of small development projects. “Now that they have other financing options, flippers can scale their businesses beyond just a few properties and grow it into a real practice.”

Read Full Article

Share this post: