With the housing market in recovery and interest rates at all time lows, increasing numbers of affluent buyers are entering the market for high end homes. This has had the effect of revitalizing the luxury home fix-and-flip as a profitable investment strategy. The following article from the LA Times highlights how some investors are taking advantage of these market dynamics. House Flipping Gets an Expensive Twist
At Arixa Capital Advisors, we have identified the high-end single family market as an attractive opportunity for lenders and have started to finance higher end renovation projects with loans in the $1 million range, some of which include a construction component.