Full Citation

Title: The Risk-Adjusted Performance of Asset Flippers

Citation Type: Miscellaneous

Publication Year: 2017

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Abstract: Using data from the housing market of Los Angeles County, we show that experienced asset flippers earn sizable abnormal performance with respect to both investments in the U.S. stock market and in a passive mutual fund tracking a representative U.S. REIT index. Abnormal performance is positive even after adjusting returns for a conservative estimate of the additional compensation for the specific risks of local real estate investment activities. Experienced flippers outperform their inexperienced competitors when trading comparable houses over the same time frame, but face decreasing returns to the scale of their asset portfolios.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2892439

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Authors: Giacoletti, Marco; Westrupp, Victor

Publisher: Marshall School of Business

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Other

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