House Flippers New Tactic: Crowdfunding
Now that housing prices are on the rise once more, house flippers are making their way back into the housing market in record numbers, hoping to snatch up distressed homes, renovate them swiftly and efficiently, and then put them back on the market for a quick profit.
The one problem many of them are facing, however, is that they’re unable to secure the mortgages they need.
Instead, they’ve found an innovative loophole in securing cash through crowdfunding.
“This gap has been left by banks that now crowdfunding platforms, like RealtyShares, are able to fill,” said Nav Athwal, CEO of RealtyShares. “They are able to provide quicker, more efficient capital that helps meet the needs of these investors who are looking for speed of execution and the ability to be flexible with their terms as well as with the underwriting standards. Banks just aren’t meeting that need.”
Image via flickr/401(K) 2012