Image source | Getty ImagesSoaring prices and low interest rates in the housing market have encouraged more investors to buy homes, renovate them quickly and then sell them for a profit. But as home resales have risen, returns have fallen even as investors hope for higher profits.Nearly 95,000 homes were resold in the third quarter of this year, marking two consecutive quarters of increases after resales dropped dramatically during the first year of the pandemic. Resales accounted for 5.7% of all sales, according to real estate database ATTOM.But the average gross profit from a property flip in the third quarter…
Author: Private Lending Agent
To minimize or defer the tax bill when selling investment real estate, investors commonly use what’s known as a 1031 or Like Kind Exchange. In this article, you’ll learn what a 1031 exchange is, how a 1031 exchange works, what the 1031 exchange rules are, the 1031 exchange timeline, and then we’ll cover some frequently asked questions. What is a 1031 Exchange? “1031 Exchange” is a colloquial reference to Section 1031 of the United States Internal Revenue Code (26 U.S.C §1031), which defines the conditions for tax deferral on the sale of real estate. Specifically, the tax code states that: “No gain or loss…
Zillow Offers is the company's “iBuyer” service that aims to digitize the home-buying experience from start to finish. (Zillow Photo) Zillow Group said it is making good progress selling its owned homes, announcing today that more than 50% of the homes it had slated for sale as part of its decision to shut down its Zillow Offers business unit have been sold or are under contract to be sold. The Seattle-based real estate company also announced that its board of directors has authorized the purchase of up to $750 million worth of Zillow stock. Zillow's shares rose in after-hours trading…
by Business reporter for The Seattle Times About a month after announcing it was shutting down its failed home-flip business, Zillow said it has sold or is in the process of selling about half of the homes it planned to sell.Earlier last month, the Seattle-based real estate company announced plans to shut down Zillow Offers, its experiment with algorithm-driven home resales, known as iBuying. After months of optimistic comments about its business, Zillow executives said homes are taking longer to renovate and resell than expected and that the company's algorithms have failed to accurately predict prices. As a result, Zillow…
Investing in any real estate involves some risk, but what about home flipping? How much risk is too much? No matter what market you're in, flipping homes is an imperfect and potentially risky business. Once you open a home, almost anything can happen. Even with an inspection (which you should do), you might find old issues that weren't properly repaired, you might not realize you're missing materials and end up with cost overruns, or you might find yourself with a home that you're not making a profit on. In real estate, we all know that you can sell anything, but…
Cincinnati renovation duo Collin and Christina Beck are best known locally as “The Renovated Family” on Instagram, but the duo recently took some time off from their company, Vero Home, to put their DIY prowess to the test by knocking down walls on HGTV's newest home renovation show, “Flipping Showdown.”Photo by Christina BeckThe show premiered on November 17 and will air every Wednesday (the Becks posted updates on the renovation on Instagram). Hosted by HGTV's Ken and Anita Corsini, the show assigns three teams to renovate a home within a budget, with the winner taking home a $100,000 prize.We caught…
Source: AETVPeople can't get enough of home renovation shows. There are tons of them, like A&E's “Zombie House Flipping.”Fans of the show are obsessed with the show, but have noticed that recent episodes have been missing some of the OGs from the cast, so what happened to Duke from the show?Article continues below adWhat happened to Duke in “Zombie House Flipping”?No, these aren't houses that eat people's brains, or ones set in a post-apocalyptic world where a handful of survivors have to make some tough decisions that will ultimately result in a bunch of people having their heads bashed in…
Fund That Flip, a New York-based real estate focused fintech platform View full company profile “> announced the initial close of a $20 million Series B funding round. The financing was led by New York's GPO Fund, with participation from MassMutual Ventures (full company profile here) and Tribeca Early Stage Partners. More than 50 Fund That Flip clients also participated in the financing through an AngelList syndicate led by real estate tech investor Jonathan Wasserstrum. Previous investors included Edison Partners and SoundBoard Venture Fund. Founded in 2014, Fund That Flip (team of 115) provides an end-to-end platform for local real…
× Fund That Flip, a New York-based real estate focused fintech platform View full company profile “> announced the initial close of a $20 million Series B funding round. The financing was led by New York's GPO Fund, with participation from MassMutual Ventures (full company profile here) and Tribeca Early Stage Partners. More than 50 Fund That Flip clients also participated in the financing through an AngelList syndicate led by real estate tech investor Jonathan Wasserstrum. Previous investors included Edison Partners and SoundBoard Venture Fund. Founded in 2014, Fund That Flip (team of 115) provides an end-to-end platform for local…
The home flipping business looms large in the minds of Americans. From reality TV shows about the business to infomercials promoting it as a get-rich-quick scheme, the concept of buying a property, renovating it, and quickly flipping it at a profit is known to just about everyone.Like many businesses affected by the pandemic, home resales have slowed this year, accounting for 4.9% of all national home sales in the second quarter of 2021, down from 6.8% during the same period last year, according to real estate data tracking firm Atom. Still, the average price of a home resold in the…