Riskier -- spec build or high end flip?
Why do people consider spec building to be riskier than high end flipping? Simply because there are more steps, more upfront risk with city approvals, or is there something else? Or is it simply that with a flip you already have an existing asset, so in the case of a default or other issue at least you have some collateral to offer your lender?
Does it have to do with the type of financing you can get? Better/no recourse loans available for flips? Isn't the reality though at the end of the day no matter what you have to sell a house to get your money back and loan paid off?
I've been discussing this offline recently with a couple of local investors here and they seem to have different opinions. Curious to hear what the pros here think. Thanks.