.jpg){kind=avatar}
.jpg){kind=avatar}
.jpg){kind=avatar}
There are few easier ways to make a quick buck in America today than flipping houses. Profits on flips are at a record high - some $66,000 on average per home - and there are more than 60 banks financing flippers today. That’s an increase of almost 50% in a little more than two months.
The 7.9% average annual rate on a fix-and-flip loan is more than twice the 3.09% rate that a bank can earn on a 30-year mortgage, and more than double the 3.75% that loans to some of the biggest junk-rated borrowers might pay. Loans to flippers also tend to be short-term, often measured in months rather than years, which is appealing to many lenders when interest rates are rising. To be clear, it’s not the big Wall Street names that are piling into the business, at least not yet. For now, it’s mostly second-tier regional banks and shadow lenders with names that most Americans never heard of, like Cutter Hill Capital, Builders Capital, and Temple View Capital.
unknownx500
