‘Unusual Circumstances’ for the Home-Flipping Business

first_img Previous: Millions May Lose Their Homes When Moratoria Expire Next: Key Takeaways from Real Estate in 2020 Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post 2020-12-17 Christina Hughes Babb in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Share 2Save Data Provider Black Knight to Acquire Top of Mind 2 days ago ‘Unusual Circumstances’ for the Home-Flipping Business December 17, 2020 1,752 Views Home / Daily Dose / ‘Unusual Circumstances’ for the Home-Flipping Business Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Christina Hughes Babb Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago Real estate investors in the third quarter of 2020 have purchased and flipped 57,155 single-family homes and condominiums nationwide, according to the latest ATTOM Data Solutions Home Flipping Report.ATTOM researchers said that for the second consecutive quarter, the rate of house flipping is down, showing the lowest activity in four years, yet the typical investment returns have increased this quarter to the highest level since early 2018.Flips in Q3 represented 5.1% of home sales or one in 20 transactions. That’s down from 6.7% of all home sales last quarter (one in 15) and from 5.5% (one in 18 sales) in the third quarter of 2019.Gross profit on the typical home flip nationwide—that’s the difference between the median sales price and the median paid by investors—rose in the third quarter of 2020 to $73,766—the highest amount since at least 2000. That amount was up from $69,000 in the second quarter of 2020 and from $61,800 in the third quarter of last year, ATTOM reports.This increase caused profit margins to grow; the typical gross flipping profit was $73,766 in Q3 or a 44% ROI compared to the initial acquisition price.The gross flipping ROI is up—42,9% for the quarter and 40.3% from last year—for the second consecutive year following nine straight quarters of declines. from 42.9 percent in the second quarter of 2020 and 40.3 percent a year ago.The opposing trend that reveals lower flipping activity and higher profits reflects the broader housing market pattern—”Home prices kept soaring throughout most of the country in the third quarter as buyers—often seeking larger or more wide-open spaces—chased a dwindling supply of homes for sale,” ATTOM’s report reads.“Home-flipping again generated higher profits on less transactions across the United States in the third quarter of 2020 as investors continued to make more money on a declining number of deals,” said Todd Teta, Chief Product Officer at ATTOM. “This all happened in the context of the pandemic, which has created unusual circumstances for the housing market to thrive, and that has included the home-flipping business. Too much is uncertain these days to say whether the latest trends will continue. But for now, the prospects continue looking up for home flipping after a period when they were trending the opposite way.”ATTOM’s full report, which breaks down home flipping rates by region, is available on ATTOMdata.com. Subscribelast_img read more

Barbara Mrkić, Carwiz: Despite the global crisis, for now all our franchises are in business, and we are expanding our business

first_imgAlthough there are relatively “few” of them on the Croatian market compared to other tourist branches, about 15 rent a car companies in Croatia generate a total of over one billion kuna in annual revenues and are responsible for buying 25 thousand new vehicles a year. “Each partner, under the mentorship of our franchise managers, chose their own strategy and path – so some decided to spend this time with training, making new business agreements and preparing for the 2021 season, while others decided to focus on car rental as the safest option.. As for state aid, each partner has chosen its own business model, which includes an independent decision on whether they want to resort to state financial assistance, a moratorium on loans and the like. We are at their disposal for all questions and advice while choosing the best business model themselves ”Mrkić points out and adds that both are very successful in their strategies, which is another confirmation that every problem has more solutions. “We also advise franchisors about new forms of business, how to reach loyal customers and how to establish new business contacts.”Said Mrkić and emphasized that it is still positive that for now all their franchises are operating, some more successful, and some with a reduced volume of work such as the franchise network in the Caribbean. Also, logically, they expect a moratorium on leasing at least until mid-2021, when revenue from the tourist season is expected to begin to flow. Of course, there are more problems, from the mandatory collection of the HRT fee to the extension of current measures for employees until the spring. But certainly the most important is the possibility of lending to survive until spring. “On the Caribbean island of St. Maarten, which has about 41.000 inhabitants, is focused exclusively on providing car rental services to tourists. On the other hand, we have franchise partners who have adapted their models almost perfectly to the situation and achieved enviable success like franchisors from Serbia who operate at the level of last year’s results. ” Mrkic points out. To get a slightly clear picture of the industry, the fact that, according to some estimates, the size of the car rental market globally is estimated at $ 86 billion in 2019, with a tendency of high growth, speaks volumes. In the end, Mrkić points out that the car rental industry on a global level is waiting for the revival of the tourism sector in the spring, in order to reach liquidity and to continue the daily growth and expansion of the Cariwza brand to new markets. When asked how other franchise partners coped in this situation, Mrkić pointed out that everything depends on the state, but that the car rental industry is not at a standstill, but has adapted to the whole situation. “The measures vary from country to country, somewhere they are more rigorous and somewhere a bit milder – it all depends on what stage of the fight against the coronavirus is which country. At the moment, the virus is growing exponentially in most of our franchise countries, and as a result, some branches have closed. ” says Mrkić and adds that they use that time for branding branches, trainings focused on working in the software system, marketing trainings and the like, and all this also refers to the preparation for the 2021 season. Coronavirus has literally stopped tourism, and a couple of months of this season have not brought much traffic, as the industry relies mostly on air traffic, which is in the first nine months recorded a drop in passenger numbers of 80%, as well as to foreign tourists and business tourism, which also recorded the biggest decline this year. This year is difficult for everyone, and especially for the entire tourism sector, including the car rental industry, which is directly dependent on tourism. The importance of the car rental industry for the tourism sector is clearly shown by the fact that more than 90 percent of car rental industry users in Croatia are foreign tourists. The car rental industry is an important part of the mosaic of the Croatian tourist offer, especially in the context of air traffic, extension of the tourist season and raising tourist consumption.  As we know, the car rental industry is extremely related to tourism (about 90% of turnover), and on the wave of new expansion of Carwiz through the franchise model, I spoke with Barbara Mrkić, Marketing Director at Carwiz rent a car and Carwiz International.center_img Interestingly, according to Mrkić, franchise partners from Greece have expanded their franchise network and are looking for more new partners for further expansion.. “We have established a new partnership in Cyprus, while in Croatia we have optimized and reorganized our business. Of course, we had to make certain cuts, reach for certain measures, but despite that we found a model that is sustainable given the overall situation in Croatia and the world.” pointed out Mrkić added that all these are examples that despite the difficult and unenviable situation, business is possible. By the way, last year alone, the state earned around HRK 300 million directly from VAT from the car rental industry, and VAT from partners, such as: vehicle importers, service workshops, fuel, tolls, etc., should certainly be added to that figure. . (according to estimates of an additional HRK 700 million of VAT), which makes a total of HRK 1 billion of VAT from car rental activities in Croatia alone. We are not talking about other miscellaneous levies, but only about VAT. Currently, the biggest challenge for the car rental industry is precisely liquidity, a large burden on leasing companies as well as concession fees to airports. So, the rental industry, like everyone in tourism, expects credit lines from Hamag Bicro and HBOR or the option for the state to give certain guarantees so that they can take out loans in commercial banks. By the way, Carwiz opened the American market in early 2020. After its first branch at Orlando International Airport, in the southeastern state of Florida, Carwiz has positioned itself in one of the most important U.S. financial centers and the third largest airport in the United States, Miami International Airport. A phenomenal start to 2020, until the moment of the coronavirus pandemic, which brought the entire world economy to its knees, and especially the tourism sector. “Also, we implemented new knowledge, optimized our business and restructured the company. We believe that business consists of ups and downs, that it functions as a living organism that requires rapid change, and that this is just another stop to be even more successful in the near future.”Said Mrkic. When asked about the current situation in the industry, Mrkić points out that the emphasis on caring for the health and cleanliness of cars has proven to be a good solution and car rental has been positioned as the safest option. “Since the crisis began, we have placed emphasis on health care. We have established teams, provided all the necessary funds for safe work and changed the existing strategies”Says Mrkić and adds that they have adjusted their goals and expectations in accordance with the situation and used the facilities and support provided to help the company survive. “Our franchise partners around the world have adjusted their business to the overall situation and dedicated themselves to domestic tourism.”, Mrkić points out and adds that now everyone needs safe transport so that we can continue with our usual way of life in the near future. From the beginning of its business in 2018, Carwiz Greece has managed to expand its business through its own network through sub-franchise agreements to twelve locations across the country – from Athens to Crete, Zakynthos, Thessaloniki, Chania and Piraeus. Barbara Mrkić, Marketing Director Carwiz rent a car and Carwiz International: Car rental positioned as the safest option Extremely positive news, in this gloomy extraordinary time, especially due to the fact that it is about Croatian tourist export product – Carwiz rent a car, which, with the new expansion of its franchise network, concluded 23 contracts and a presence in 20 countries. Also, in the last days of September, Carwiz’s story spread to Cyprus, where it entered into a partnership with Leos Groups of Companies, the most professional car rental company in Cyprus, which has been in business since 1983.last_img read more

Keshi returns without Amokachi

first_imgThe Nigeria Football Federation is  set to announce Stephen Keshi as the ‘new’ Super Eagles coach – but without Daniel Amokachi serving as assistant.The two parties have been in talks over a new contract, with the NFF offering him a two-yearcontract extension in March.From Left: National Team Goalkeeper Trainer, Ike Shorunmu; Assistant Coach, Daniel Amokachi, and Super Eagles Chief Coach, Stephen Keshi during a media parley in AbujaAnd sources at the NFF have informed that Keshi will sign the contract in the next ‘few days’, with reports having it that it might be as soon as today, Friday, April 17. The contract will see Keshi remain on the N5m monthly salary he earned in his previous contract, but he will now report directly to the NFF technical director and the NFF technical study group.The announcement will see the Glass House name a substantive coach for the Super Eagles for the first time in nine months – since last July when Keshi’s initial contract expired.The announcement also comes ahead of the 2017 Africa Cup of Nations qualifiers which starts in June, with Nigeria in the same group as Egypt, Tanzania and Chad.Meanwhile, it is also understood that Keshi’s return will mean the end for former Super Eagles striker, Daniel Amokachi, who has been Keshi’s first assistant since November 2011 when he replaced another former Nigeria international, Samson Siasia as the Super Eagles head coach.Neither the NFF, nor Keshi, have directly confirmed or denied this development, but it is strongly believed that Amokachi may have done his last bit with the team when he took them to Nelspruit, South Africa for that 1-1 draw in friendly in March.last_img read more