#VANILLA ICE HOUSE FLIPPER SERIES#

“When the loan matures - let’s say it’s 11 months - we want our borrower to be successful,” said Stephen Pollack, the chief executive and president of Anchor Loans. It also ensures that developers do not walk away from the properties, because they have put a substantial amount of their own money into a project. This provides a substantial cushion to protect against a property’s falling in value. The average loan-to-value ratio in the industry is about 55 percent, compared with 75 percent to 80 percent for a typical mortgage. But investors say hard-money loans are more stable than a bank mortgage because they are secured by properties at a lower loan-to-value ratio, a risk assessment used by lenders. “There is some risk that real estate values will reset, but I feel good about the meaningful investment process.”įor skeptics, the quick turnaround on real estate speculation might evoke the go-go thinking that led to the mortgage crisis just a decade ago. “Since 2009, the fund hasn’t been tested, and I’m very, very aware of that,” Mr. Gutek has put about 20 percent of his liquid assets in a fund managed by Broadmark Capital, an investment bank in Seattle that has $350 million in 200 short-term loans. It was not good underwriting.”įunds set up these days by lenders like Genesis Capital in Los Angeles and Anchor Loans in Calabasas, Calif., say they are more transparent and conservative in their underwriting. “I was getting nice 12 to 13 percent interest for a few years, but I had one very bad experience in 2008,” Mr.

#VANILLA ICE HOUSE FLIPPER SERIES#

The trend, popularized on TV series like “Flip or Flop” on HGTV and “Flipping Out” on Bravo, is attracting the interest of Wall Street: Last week, Goldman Sachs bought Genesis Capital, a leading lender to house flippers.īut the loans - sometimes referred to as fix-and-flip or hard-money loans - come with risks, including developers unable to pay them back and a drop in real estate prices that could make properties hard to sell or even rent.Ĭhris Gutek, a former equity analyst at Morgan Stanley who has been an independent investor in Grand Rapids, Mich., for the last decade, said he lost money on loan funds in 2008 but remained bullish on the sector. Last year, 5.7 percent of all home sales were flips, the highest level since 2006, according to Attom Data Solutions, a national property database. The finance industry around house flipping has been active for decades, and it has been ticking up lately. And the funds that finance them offer reliable returns of about 8 percent, for those who can meet minimum investments, generally $100,000. The loans are backed by the property and are short, typically running for a year or less. And with the renewed interest come investors looking for a high return.īut that real estate strategy - in which a home is bought, renovated and resold quickly - requires fast access to money, and developers are willing to pay higher interest rates for it. I had a nice wave that was big back in the day, and I caught another wave today and am just enjoying the ride.House flipping, which declined after the financial crisis in 2008, is on the rise again, thanks to low interest rates and rising home prices. “I think people are embracing the whole underdog thing - it’s kind of the American way,” he says. With a new show and album, Vanilla Ice says that people are paying attention to his story in a way that’s reminiscent to when “Ice, Ice Baby” made him a star 20 years ago. There’s no explicit lyrics on this one, which is good.”

I even got some acoustic, a cappella stuff on there. It’s got a country song that I’ve done with Cowboy Troy. “It’s got a lot of hip-hop on it, but it’s all over the map,” he says. Later this year, he plans to independently release “WTF,” a new album whose title was inspired by its musical diversity.

The venture into television has not slowed down Vanilla Ice’s musical output, however. “The before and after shots are going to be amazing,” says the rapper, who spent four and a half months filming. With a concept that combines “This Old House” with “Pimp My Ride,” “The Vanilla Ice Project” finds Vanilla Ice and his crew adding flashy features such as electric drapes, 110-inch projector screens and “fire pods” to the home. it worked well for television, so we filmed a little pilot, sent it to DIY and they were all over it.” The rapper had recently purchased the Palm Beach mansion after its previous owner “lost a lot of money in it and basically gutted the entire house… every cabinet was gone, every toilet was gone, even the door frames were gone. Vanilla Ice to Perform at NFL Halftime ShowĪccording to Vanilla Ice, the show quickly came together after executives at DIY Network discovered his passion for real estate and self-taught home improvement skills.

Vanilla ice house flipper