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Fix & Flip Investments in 2021: An Industry Assessment

image of 2021 calendar

As the world continues to normalize in the wake of the global COVID-19 crisis, fix and flip investors have their eyes on the global rebounding housing market. After a year of suppressed sales and diminished showings, what can these property flipping investors to expect as 2021 becomes more fully realized?

Let’s take an assessment of the fix and flip industry in 2021 by highlighting what savvy professionals should expect in the coming year.

Pro: Rising Real Estate Demands

In response to last year’s COVID-19 crisis, the Federal Reserve would make global headlines by announcing an eye-popping adjustment to the interest rate. Borrowing rates have bottomed out in a way that we might never see again, thus leading to affordable rates that we could only dream about several years ago.

Simple adjustments to your mortgage by even a quarter of a percentage point can translate to thousands of saved dollars over the duration of your mortgage. As long as the Federal Reserve holds strong to its commitment to reducing interest rates, investors in fix-and-flip properties are going to find constant activity within the industry.

There is some hope throughout the country that the nation will rebound with a Roaring ’20s style economic revival, led in part by affordable mortgage rates and a buying populace ready to live again. While much of this is conjecture, there is hope that real estate demands will meet realty as property buyers hit the market yet again.

Con: Limited Inventory of Properties

As COVID-19 settled into America, housing markets around the nation went dormant. Many homeowners who were looking to unload their property would opt instead to take their homes off the market, thus reducing potential exposure to the coronavirus. This is an issue that was only exacerbated by compounded stay-at-home orders and extended lockdowns.

Fix-and-flip investors are going to need a larger inventory of properties to choose from to enact their winning investment strategies. A limited selection of housing options can severely limit the upside of a fix-and-flip investor.

A limited amount of properties can cause a fix-and-flip investor to go against their strategy for the sake of making a purchase. Be wary of feeling compelled to rush. Focus on making good purchases instead and allow the market to catch up.

Pro: Potential Foreclosures in the Future

One individual’s loss is another person’s gain. As homeowners struggle to keep up with expenses incurred during the pandemic, bankers and lenders are going to get serious about recouping their expenses. This could lead to a swathe of foreclosures spreading across the market, leading to potential jackpot gains for savvy and alert investors.

While it is hard to look forward in anticipation of a foreclosure, fix-and-flip investors are going to have many opportunities in the coming year. Dates and times for these foreclosures will vary based upon the market, especially as you shift from one state to the next, so pay attention as the foreclosure market begins to heat up.

About Hard Money Lenders Arizona

While the housing market is going to continue marching toward recovery, fix-and-flip investors will have encouraging positive signs to hang their hats on in the coming months. Flipping investors in Arizona looking to make a leap into their next investment can turn to Hard Money Lenders AZ for help.

Hard Money Lenders Arizona is a private team of funders based out of Phoenix and experienced in every aspect of real estate lending. With decades of experience and unbeatable customer service on their side, help from the team at Hard Money Lenders Arizona is just a click away!

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