Community Builders Not Just Flippers: Part of the Puzzle
By Rob Jafek | Boomerang Capital, Principal
It’s puzzling—while those enhancing commercial spaces are praised for “revitalizing,” “restoring,” or “rejuvenating” business districts, those improving residential properties don’t always receive the same level of appreciation. The positive impact they create is just as profound and deserves equal recognition. We’ve made it one of our missions to work to change the perception of “flippers” because their contributions to our community are underrated and misunderstood.
One reason for this disparity may lie in the language we use. Residential investors are often labeled as “fix-and-flippers,” while their commercial counterparts enjoy the more prestigious title of “value-add investors.” Similarly, financial partners in residential projects are referred to as “hard money lenders,” whereas in commercial real estate, they are known as “bridge lenders.” These distinctions subtly influence perceptions, and it’s time for a shift—one that truly honors the value brought to communities by all types of property investors. These dedicated individuals breathe new life into communities, yet their contributions often go unrecognized.
We see the tremendous impact that real estate investors have in the neighborhoods they serve. These professionals dedicate their time, expertise, and resources to transforming outdated properties into thriving homes and businesses. They deserve recognition for their role in community improvement, and we advocate for a reimagining of their image—one that aligns with the respect afforded to commercial developers.
A Shared Mission: Enhancing Communities The work done in residential and commercial real estate shares the same core objective: adding value and fostering growth. Here are just a few of the ways these efforts align:
Strengthening Neighborhoods: Whether residential or commercial, revitalization efforts turn neglected properties into vibrant, functional spaces. While aesthetics is an important aspect, much of the work involves addressing long-overdue maintenance issues that improve safety, efficiency, and livability. These upgrades enhance property values and attract new residents and businesses, contributing to a thriving community.
Swift Transformation: Speed is essential in these projects. While property owners might have the ability to renovate on their own, the disruption can be overwhelming. Investors streamline this process, ensuring that properties are upgraded efficiently and quickly, minimizing inconvenience, and maximizing the benefits to the neighborhood.
Creating Value for All: Every stakeholder benefits from these improvements. Sellers receive a fair price without having to undertake major renovations themselves. Buyers gain a fully updated property, ready for immediate use at a cost lower than if they had taken on the work themselves. And the broader community enjoys the renewed energy and increased appeal of the improved spaces.
Sustainability in Property Development In the commercial sector, eco-friendly development is widely embraced, with recognition given to sustainable practices. The same trend is taking hold in residential investment, with many renovators prioritizing energy efficiency, sustainable materials, and green certifications. These efforts not only reduce environmental impact but also enhance long-term affordability and livability. The fix-and-flippers who integrate these forward-thinking practices deserve just as much admiration as their commercial counterparts.
Elevating Perception, Elevating Communities It’s time to redefine the way we view residential property investors. These individuals are more than “fix-and-flippers”—they are dedicated professionals investing in the heart of our communities. Their work revitalizes homes, uplifts neighborhoods, and creates opportunities for residents to thrive.
One could easily be tempted to compare value-add to new-build and while these are related, they are quite different in some important ways. Start by looking at where the majority of the new build is happening - it’s either high-density infill (check out Tempe or Gilbert) or low-density and far out (see the west side and Loop 303). There is great work and development going on in both types of developments, but if a buyer is looking for a combination of space and move-in condition, they are likely going to be talking to a redeveloper (aka a fix-and-flipper). Why a redeveloper? The average age of a home in the US is 40 years old, and just about 30 years old in the Phoenix MSA. Not only are the aesthetics in need of updating, but the major systems probably need looking at too (the roof, plumbing, electrical, etc.). This is where value-adders shine: take an aged, existing home, in a good spot, close to work and amenities, and update it, all at a comparable to possibly even better price than a new build (new builds are over a 20% premium).
We proudly stand in support of these investors and their invaluable contributions. Let’s recognize them for what they truly are—community builders, visionaries, and agents of positive change.