Investment firms move in on 'fix and flip'

Washington

REAL estate buyers seeking money to renovate and flip US houses are getting help from some of the world's biggest investment firms.

Colony Capital Inc, Blackstone Group LP and Cerberus Capital Management are among the companies that have started making bridge loans to investors who buy homes to sell them quickly for a profit. Borrowing costs - traditionally the highest in residential lending - are tumbling as the firms compete for customers.

The foray represents a deepening bet on the housing market by Wall Street-backed companies, many of which have built rental-home…