Wall Street, which was nearly felled by real-estate forays almost a decade ago, is getting back into housing flipping.
The Wall Street Journal reports the number of investors who flipped a house in the first nine months of this year reached the highest level since 2007, with about one-third of the deals financed with debt, a percentage not seen in eight years.
A number of banks are arranging financing vehicles for house-flippers, who buy and sell homes in a matter of months. In recent months, Wells Fargo, Goldman Sachs and J.P. Morgan Chase have started extending credit lines to companies that specialize in lending to home-flippers.
The sector is small—participants say roughly several hundred million dollars in deals have been made in recent months—but it is expected to keep growing.
“The floodgates have opened,” says Eduardo Axtle, a 35-year-old former telecom entrepreneur in Oakland, who has taken out about 50 home loans over the past five years.
These days, he’s bombarded with unsolicited emails from brokers offering him access to financing, and fellow flippers invite him to get-togethers that are advertised with YouTube videos showing off recent projects.