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Construction Spec Loans

Construction Spec Loans

Fix and Flips: An Alternative During a Period of High Lumber Costs

While lumber and labor costs remain high, fix and flips may be a way for builders who do some of their own finish work to maximize profit until prices drop. While we anticipate lumber yards dropping lumber prices soon, in the mean time, some potential construction projects that had nice margins last year seem to be thin now. Most fix and flips don’t involve framing labor, concrete, roofing, framing, etc., so the profitability on those projects may be a bit healthier these days.

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