Why fewer lending options can mean more fix-and-flip deals for brokers
“It’s just still so hyperlocal,” he said. “When you saw some of the large iBuyers or institutions try to flip homes, a lot of them ended up shutting down in the post-pandemic era because it’s really hard to flip homes at scale. Every street is different. There are so many different vendors that you could source your materials from, and the labor is so scattered.”
The investors succeeding in the current market, according to Goodwin, are the ones that have their operations down to a science.
“It’s been quite impressive to see some of the internal systems that our clients have built around project management, in terms of how they order materials and from what vendors and at what timelines, and how they’ve arranged their partners within the labor that they use,” he said. “It’s impressive to see people tighten up their operations and continue to have success.”
The more experienced investors in this space, he said, have learned not to wait for conditions to improve before doing business.
“A flat market is a market that you can operate in,” he said. “We have seen tons of success by small, medium and large real estate investors across the board. Despite what some of the headlines say, you are still seeing many people realize their dreams, finish their first flip or finish their 100th flip, and are doing just fine with things.”
