Acadiana Business Briefs for April 10, 2022 | Business

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In 2021, fewer homes were flipped in Lafayette

Data shows fewer homes flipped in Metro Lafayette and with a lower gross yield in 2021.

According to data from ATTOM, a national real estate database, the typical gross yield for an upside-down home in Metro Lafayette for the quarter was 34.4%, below the 80% yield for a home in 2020. A typical home that in Flipped in 2021 had an average ROI of $48,462 after hitting $80,000 in 2020.

Data shows 335 homes were reported flipped, just 1% below the 2020 total but more than 10% higher than the total from five and 10 years ago. The total number of homes flipped last year accounted for 5.8% of all homes sold.

The median purchase price paid for an upside-down house was $141,038 in 2021, data shows. Home prices have risen in the Lafayette area and other markets across the country over the past year, with homes selling for an average of $261,789 over the past year, surpassing the 2020 average of $241,739, which was the highest on record Eclipsed 8%, according to data from Bill Bacque with Market Scope Consulting.

The Lafayette market reflected national data. Homes flipped in 2021 nationwide typically generated gross profits of $65,000, down 3% from 2020’s $67,000 and an ROI of 31%, the lowest margin since 2008 The most recent ROI was down from 41.9% in 2020 and 40% in 2019, also marking the steepest decline since at least 2005.

Fins brought homes to market faster in 2021, with the average home being completed in 180 days compared to 195 days in 2020.

“While gross returns for fix-and-flip investors were lower in 2021, there may have been offsets protecting net returns,” said Rick Sharga, ATTOM’s executive vice president of market intelligence. “Fewer fins funded their purchases, so their cost of capital was lower. And it took less time to flip, reducing holding costs and suggesting less extensive — and less expensive — repairs were needed to get the properties on the market.”

Sombrero’s Mexican Kitchen & Cantina is closing

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Sombrero’s Mexican Kitchen & Cantinawhich relocated from Opelousas to a location north of Lafayette nearly three years ago, has closed its doors.

The owners announced on Facebook that they were closing the restaurant at 3235 NW Evangeline Thruway after nine years combined at both locations.

The restaurant group also has locations in Alexandria and Walker.

“We would like to thank all of our customers in Lafayette, Opelousas and the surrounding area for their support over the past nine years,” the post reads. “It’s a tough decision to close but we just don’t have the business to keep it going.”

Sombrero’s moved to the site of another Mexican restaurant, Picante Mexican Restaurant & Cantina, which had closed months earlier.

Bob Giles was named Time Dealer of the Year

Bob Giles, owner of Giles Automotive in Lafayette, was named 2022 Time Dealer of the Year by leaders from Time and Ally Financial at the 105th National Automobile Dealers Association Show.

Giles was recognized for its leadership in the business and in the community, including its launch of the Giles Essential Errand Running Service, in which retailer employees provide grocery and essential item deliveries to seniors and the immunocompromised.

Giles was selected from a field of nearly 16,000 franchise dealers across the country, 47 of whom were shortlisted.

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