Amateur Home Flippers Get Harsh Wake Up Call

Amateur Home Flippers Get Harsh Wake Up Call As They Learn As It’s Not As Easy As They Show On TV

A new generation of amateur home flippers is getting caught with their pants down. 

The last generation of amateur home flippers thought they could make millions after watching four or five episodes of The Apprentice. These clueless and wannabe Donald Trumps made up nearly 50% of the foreclosures in Florida after the crash.

This latest generation of amateur home flippers has emerged thanks to HGTV. However, home flipping isn’t as easy as it appears on TV. 

Prashant Gopal at Bloomberg reports:

Many newbie investors are encountering their first slowdown and facing losses from houses that take too long to sell. Meanwhile, they face steep payments on a kind of high-interest debt—known as ‘hard money’ loans—that helped power the boom.

Property flips made up 6.5% of U.S. sales in the fourth quarter of 2018. 

Read more at MFI-Miami