57: Did High Interest Rates Kill Off House Flippers? w/Dominique Gunderson and Leka Devatha
On The Market
Shownotes Transcript
House flipping) was almost a guaranteed win in 2020 and 2021. With **home prices **steadily rising and **interest rates dropping, throwing on a new coat of paint was often enough to make a six-figure profit on what would otherwise be a basic home. House flippers got accustomed to doing quick jobs while walking away with almost unbelievable returns. But, many of them got overconfident. Now with the housing market in a correction **and the US on the edge of a recession, flippers find themselves with inventory no one wants to buy.
But, this isn’t the case for every flipper. The time-tested expert investors knew that this would happen, and as a result, they’re still making a killing on their flips. Some of these flippers are joining us on the show today. As always, we’ve got Seattle-based superstar, James Dainard to give his multiple-decade-long take on house flipping. And, joining as new guests are Dominique Gunderson, New Orleans-based flipper, and Leka Devatha, luxury flipper and one of James’ favorite buyers!
These three house flippers operate in very different ways. James touches on** multi-million-dollar luxury flips **and multifamilies, Leka focuses more on high-end yet still affordable flips and Dominique provides high-quality housing at a reasonable price for residential buyers down south. These are three flippers who have NOT let the market change their business plans, and because of some smart moves (which they share on today’s episode), they’re still sitting pretty and getting deals done, even as the market starts to slide.
In This Episode We Cover
Inflation)** rate updates **and some good news for investors
How **2022 took **many **flippers by surprise **and put inexperienced investors out of business
**Labor and material cost updates **and why flippers are still running into inventory problems
The risk behind flipping and whether or not high interest rates) makes make it worth it
Tips for new flippers) who want to get into the market without getting burnt
**The danger of not **diversifying) and how sticking to one asset class can destroy your wealth
2023 house flipping predictions and how to** protect your wealth** if home prices tumble even further
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent)
Join the Future of Real Estate Investing with Fundrise)
Connect with Other Investors in the “On The Market” Forums)
Subscribe to The “On The Market” YouTube Channel)
Project|RE Real Estate Investing with James Dainard)
BiggerPockets Podcast 587 with Dominique)
BiggerPockets Podcast 390 with Leka)
Connect with Dominique & Leka:
Dominique's BiggerPockets Profile)
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-57
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