It’s a smart time to focus on fix and flip. While the pandemic devastated certain parts of the mortgage sector – “it wasn’t nice,” Lind said – the fix-and-flip route remained popular, especially when compared to investing in new home. The reason? Very easily.
“It’s cheaper. Think inflation, scarcity or rising prices, or any other by-product you need to build a house. Not only are material prices rising, but builders are working for higher margins because they can. Traditionally five knocked People on the door, but now 40 people are knocking on your door to build a house, so you really get hit on both sides, not just on the material, but also on the edges.
“The advantage of the repair is that you don’t have to remodel a house. You don’t need all that wood. You don’t need all of the metal in the plumbing. You may need some of these, but you don’t need all of them.
“It is more efficient to already have a house than to build from scratch. And the average house in the US is 40 years old – so I think that aspect of the business will stay here. “
It’s a market that has given Acra the opportunity to showcase its customer-centric approach – and also highlight the importance of having a measured and analytical outlook on lending.