Issue link: http://dsnews.uberflip.com/i/1149365
ยป VISIT US ONLINE @ DSNEWS.COM 9 A W O M E N O W N E D L A W F I R M Appeals, Bankruptcy, Collections, Contract Review, Compliance, Deed-In-Lieu, Due Diligence Assistance, Foreclosure, Evictions, Litigation, REO, Title ALABAMA | FLORIDA | GEORGIA | MARYLAND | NORTH CAROLINA | SOUTH CAROLINA | TENNESSEE | VIRGINIA WWW.MTGLAW.COM THE RETURN OF HOME- FLIPPERS House flipping is on the rise. Data from CoreLogic indicates the home-flipping rate has increased year-over-year for 12 consecutive quarters, and on a seasonally adjusted basis is now at the highest level since CoreLogic started keeping track in 2002, at 10.9% of home sales as of Q 4 2018. A new player in the home-flipping game is the "iBuyer." According to Sean Black, CEO & Co-Founder of Knock.com, writing for Forbes, iBuyers are companies who buy homes through instant offers, often spending only a few thousand on repairs and reselling for a smaller profit than traditional home flippers. ese iBuyers companies are expanding, selling more and more homes each quarter, but according to Zillow, which is increasing its iBuyer segment, margins on these instant offers are "razor thin." Meanwhile, the returns for traditional flippers has risen. "In addition to flipping rates, we also estimate economic returns to flipping," said Ralph McLaughlin, Deputy Chief Economist at CoreLogic. According to McLaughlin, returns for flippers have risen significantly, up to a median of around 40% after 2007. Additionally, he notes that flippers are shifting away from price speculation and toward adding value to properties. Returns are particularly high for older housing. CoreLogic found that profits are highest in Detroit, Philadelphia, and Pittsburgh with returns of 95.9%, 92.8%, and 75%, respectively, while areas with newer housing stock, such as Colorado, Arkansas, Missouri, Texas, Arizona, Tennessee, Florida, and Nevada, have seen lower returns ranging between 8.4-10.8%. Still, iBuyers such as Zillow's "Homes" have seen significant growth, even if they are not yet at the level of traditional flippers. Zillow's "Homes" segment grew from $11 million to over $40 million from Q 3 to Q 4 2018, representing a 400% growth, with gross profit increasing from $700,000 in Q 3 2018 and $2 million in Q 4 2018, a small but significant margin, as Zillow admits that the actual goal is to sell mortgages.