Skip to main content

Brooklyn Neighborhood Targeted in House Flipping Frenzy

Apr 19, 2016
The presidential candidates are not the only ones that have their eyes on New York, as a new wave of investors are aggressively aiming at the East New York section of Brooklyn for house flipping activity

The presidential candidates are not the only ones that have their eyes on New York, as a new wave of investors are aggressively aiming at the East New York section of Brooklyn for house flipping activity.

NY1.com cites a new study from the non-profit Center for NYC Neighborhoods that found 94 homes in East New York were sold last for an average of $215,000 and then flipped within a year for amounts that were than triple their purchase price. The neighborhood is attracting real estate speculators, according to the report, due to municipal efforts to create more housing by rezoning and because of a weak local economy and high percentage of elderly residents—and some would-be buyers brazenly approach homeowners with offers for immediate cash purchases.

"There's a real rush to make money in our neighborhoods because you can get such a higher return here and what that's doing is creating these false markets," said Christie Peale, executive director for at the Center for NYC Neighborhoods.

While flipping is not unusual for New York City—the study found more than 1,800 properties underwent this process last year—East New York’s real estate scene has become so chaotic that community groups successfully influenced the city to create a $12 million fund to fight residential displacement in that neighborhood.

About the author
Published
Apr 19, 2016
Co-Founder Mat Grella Terminated From NEXA After Buyout Disagreement

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024