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Texas Home Flippers, Austin Is The Hottest Market In 2021

Texas Home Flippers, Austin is the Hottest Market in 2021

Texas House Flipping Series
1. Texas Home Flippers, Austin is the Hottest Market in 2021
2. 2021 Sees Surge in Opportunity for Flipping Houses in Dallas
3. Don’t Sleep on Flipping Houses in San Antonio Texas
4. Why Everyone is Flipping Houses in Texas

When you think of the hottest place to do home flips in Texas, you’d likely guess somewhere like Waco — the stomping grounds of the infamous Chip & Joanna Gaines. But in the post-pandemic market, the largest jump in growth is actually just a little bit south, in the Austin Hill Country Area.

Whether it’s the massive influx of Californians, the vast job opportunities from tech giants like Samsung and Tesla moving into town, or simply the gorgeous views of Lake Travis, everyone wants a residence in the beautiful Texas Hill Country.

Austin is the Hottest Market for Flipping Houses in Texas

Just how big is this housing boom? According to Orchard, the average home price in the Austin area has increased by an average of 31% year-over-year, with some zip codes seeing a price increase of well over 65%!

Of these, the hottest places within the Hill Country to buy a home are Leander, Marble Falls, and Wimberly. These cities join other Texas markets that were surging just prior to the pandemic.

Not only are the prices of homes skyrocketing, but their time on the market once put up for sale is also averaging less than a week, with some homes sold within just 4 days.

Financing Your Austin-Area Home Flip

With the steep increase in home prices comes the steep increase in profit potential from flipping a home. Unless you have all the cash up front, you’re going to need to take out a loan in order to buy a house worth flipping in this highly competitive market.

For most flippers, there are two options:.

  1. Financing through a bank
  2. Getting a hard money loan from a private lender

Private Lender vs Bank: What’s the Best Loan For Fix-and-Flips?

Given the rapid increase in price and speed at which homes are being purchased in the Hill Country, the most crucial factor in acquiring the capital you need for a home flip is speed.

It’s true, traditional banks will be able to finance you at a lower interest rate with less money down versus that of a hard money loan (granted, their criteria for eligibility will be much more strict). However, given how rapidly homes are selling, home searchers reliant on a traditional bank loan are missing out on purchases due to slow funding times.

That’s because other investors putting in offers on the home you’re looking at are coming in with cash offers, taking advantage of the quick list-to-sell times.

Related Content: What Type of Loan is Best for Home Improvements

Benefits of a Hard Money Loan for Home Flips

While hard money loans are subject to higher rates and shorter terms than traditional bank loans, they are the fastest way to get financing for a home flip.

Typically with a hard money loan, you can have the capital you need within five business days. In fact, for some Austin-area flippers, Park Place Finance has been able to get some investors funded within 24 hours!

The faster you get funded, the faster you can fix, flip, and sell for a profit.

The Best Hard Money Loans for Austin Real Estate

At Park Place Finance, we provide hard money loans for fix-and-flips, investment properties, and rehabs alike. But we’re also Austin natives, with our main office located downtown. That means no one understands flipping homes in the Hill Country like we do.

If you’re interested in getting in on 2021’s hottest Texas market, reach out to us. We provide hard money loans for new house flippers and experienced investors alike. Our rates are competitive and our market insight for central Texas is unparalleled.

Related Content: Popular Home Renovation Trends in Austin

Justin Hubbert

Justin began his lending career working for a Lending Tree Affiliate and Chase Bank for several years before opening Park Place Finance in Austin, Texas in 2007. With expertise in condo project approvals, working with self-employed borrowers, and Texas Cash Out loan regulations, he has originated over $110 million in Conventional, FHA, and jumbo residential loans.

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