MFI-Miami Blog

Real Estate Alert: Home Flippers Getting Burned In Key Markets Highlighted On HGTV Reality Shows Real Estate Alert! Amateur home-flippers are getting burned. Especially on fixer-uppers. Contrary to what HGTV shows are telling you. Real estate markets highlighted on HGTV reality shows are not as profitable as they show on TV. The  ATTOM Data Solutions ’ third-quarter 2019 U.S. Home Flipping Report states returns on home flips stood at the second-lowest point since 2011. Todd Teta, chief product officer at ATTOM Data Solutions told Housingwire: After a springtime selling binge earlier this year, the home-flipping business settled way down over the summer amid a continuing scenario of languishing profits. Read more at MFI-Miami

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