Hard-money lenders welcome pricey property projects as supply of low-end homes dwindles. The master bedroom is garish pink, a second bedroom deep purple. But to Jan Brzeski of Westwood lender Arixa capital, the small house in the hills of Sherman Oaks is all green.
House flippers, who stoked the housing bubble a decade ago, are making a comeback with the help of funding from private-equity firms and other non-bank investment companies. House flipper Greg Hebner expects to rake in about 30 percent profit in eight months, more than twice the return of the Standard and Poor’s 500 Index (SPX), as he seeks a buyer for his latest makeover.
Despite the recent slowdown in housing prices and sales volume, as well as the looming specter of higher mortgages, panelists at Arixa Capital Advisors’ recent first investment roundtable in Orange County were surprisingly sanguine about the future prospects for the single-family market.
Deciding which markets are primary, secondary, and tertiary can seem rather arbitrary, but defining those markets was part of the panel "Secondary vs. Tertiary markets: Where Will the Prime Investment Opportunities be in 2014?