In this special Expert Series edition of Self Directed Investor Talk, Daren Blomquist, Vice President of the respected data firm RealtyTrac gives his insights on the suitability of today’s market for house flipping, along with his predictions for what 2017 holds for America’s real estate markets.  I’m Bryan Ellis, your host and I’d like to welcome you to a very special edition of Self Directed Investor Talk.  Please send your questions and comments to us by email at feedback at sditalk.com or on Facebook or Twitter at SDITalk.  With that… Bryan Ellis:                       Mr. Blomquist, how are you today, sir? Daren Blomquist:            I'm doing very well. How are you? Bryan Ellis:                       Very well. Thanks for joining us. Look, I've always or have long been a fan of Realtytrac and what is now ATTOM Data Solutions, and particularly your quarterly home flipping report, because that's one of the businesses that we're in. I had a look at the Q3 2016 report, and it's interesting because it looks like overall, the information's positive, 45,000 flips last quarter with a pretty substantial gross ROI. Some of the other data, such as slowing volume of flips compared to both last quarter and compared to a year ago. At least a significantly the declining percentage of flipped funded with cash. Those things raise my eyebrows as someone who looks at this market. What do you make of those things? Daren Blomquist:            Yeah, I think the decline in flips is ... Right now, I would consider that more of an aberration that's interrupting a long-term trend upward home flipping, and the market is very favorable to home flippers right now. Now it's becoming tougher because prices are getting so high and flippers are jumping into the market, it's becoming more competitive. Bryan Ellis:                       Right. Daren Blomquist:            Still, you have low inventory that's very favorable to flippers. They're providing inventory that the new home builders are not. Bryan Ellis:                       Right. Daren Blomquist:            Then you have rising home prices, which is a double-edged sword. It's tough, it makes it tougher for flippers to find discounts on the front end, but it makes it a lot easier for them to sell. It gives them a cushion to some on the back end. All that to say, I think actually we saw a decrease in overall sales in the third quarter, and I think it's partially a reaction to uncertainty around the election. Bryan Ellis:                       Sure. Daren Blomquist:            I think we'll see that aberration pick back up in terms of the number of home flips. Now I think we'll see it shift, which we're already starting to see to the flippers are shifting to different markets where they can actually find, still find discounts on properties on the front end, or there's more availability of discounts. A lot of times in the form of foreclosures. Bryan Ellis:                       Right. Daren Blomquist:            In terms of the cash piece of it, there's fewer. It's still 68% of flippers are using cash to buy, which compared to the last housing boom, we were seeing about 35% of flippers using cash to buy. Bryan Ellis:                       Wow. Daren Blomquist:            Much more of them were using lending. We are seeing that number at an eight-year low, which means there is more availability of funding for flippers rather than having to use their own money in terms of crowdfunding. In terms of other alternative financing sources. That actually is one of the reasons I think we'll see flipping continue is that's going to enable more flippers to jump in. That may not always be a good thing, but it is going to push the market higher I think in 2017. Bryan Ellis:                       In your analysis or if you guys track this, who buys those flipper properties? Owner occupants or other investors? Daren Blomquist:            I don't have the exact percentage on that, but the majority is owner occupants.