House Flipping Profits Soar 30% In 2014

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on May 08 in BestTransactionFunding
Market conditions and profits improve by double digits for real estate investors in 2014…

New data shows all the stars aligning for property wholesalers. According to data from foreclosure monitor RealtyTrac:

• Average gross profit per home flipped topped $60k in Q4 2013
• For Q1 2014 unadjusted ROI on flipped houses averaged 30%
• The average time to rehab and flip houses dropped almost 20% to 84 days

So profit margins, and annual returns are improving nicely for U.S. real estate investors. However, so are conditions for flipping and wholesaling even more homes in the second half of 2014.

Quarter over quarter a new 2014 U.S. Home Flipping Report shows the percentage of American homes sales which were flips dropped to just 3.7%. Some might find this surprising. However, savvy wholesalers likely recognize this as great news. It certainly somewhat reflects the recent dips in available housing inventory and decline in publicly available foreclosures and short sales.

However, it also suggests more competition, and specifically heavy weight institutions with bigger pockets are moving out of the way for smaller investors. Plus, as an experienced, veteran wholesaler knows, a hot and healthy market can be even better for flipping and profits thanks to rapid home price increases and end buyer demand. This is backed up even further on news that all cash home purchases hit a new high in Q1 2014 at 42.7% of all residential property transactions.

There are still a multitude of potential wholesale properties out there, with more coming online daily. In Detroit alone hundreds of new foreclosure homes are going to the auction block for as little as $1k a pop.

For those seeking more liquidity to ramp up volume and flip houses faster check out what BestTransactionFunding.com can do for you today...
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