Updated about 13 years ago on . Most recent reply
Real Estate Investors Getting “Skinnier Deals” In Some Markets
A flood of new buyers have entered the scene in some real estate markets creating competition among real estate investors who focus on “flips” to make money. In some areas of the U.S., there are bidding wars going on for the best properties with the biggest upsides.
Some of our most active real estate investors have been submitting properties to us with skinnier and skinnier profit margins. For example, one of our most savvy investors in Colorado just submitted a loan request on a house with a purchase price of $200,000, repairs of $16,000 and an after repaired value of $277,000. After real estate agent commissions are taken out, that’s a fairly skinny deal.
Although there’s always a property out there with a big upside, I’ve seen my most active real estate investors bringing skinnier and skinner deals.
What are you seeing in your corner of the real estate market? Please share.