Real estate investors really shouldn’t be worried about a lack of deals, especially with a new foreclosure surge coming…
There may not be a ton of REOs being publicly advertised in some communities at the moment but the number of delinquent home loans and foreclosures in the pipeline is huge.
We’ve all heard that some states are just seeing their real foreclosure surge now. FHA is clearly in major trouble and has plenty of distressed assets to shed and many other types of loans are just beginning to really fold.
Now re-defaults on loan modifications are beginning to pick up steam, jumping 25% in September and with as much as 40% of subprime loans going back into foreclosure within 12 months. This is a trend that will no doubt get worse in the wake of Sandy and after the December holidays.
At the same time home sales are doing better and new homes sales and builder confidence is doing well, increasing spreads for real estate investing.
More discounted, distressed properties and simultaneously rising home values make market conditions ideal for flipping houses. In fact, investors really couldn’t ask for a better scenario.
With hundreds of billions of delinquent loans and foreclosures still working their way through the system there is really no shortage of deals in sight. Plus, don’t forget there were few if any foreclosures during last boom period but real estate investors still made many millions from flipping houses, wholesaling and rentals just the same.
These are sweet times for real estate investing and investors should be focused on being thankful for the endless opportunities that are out there for them, with plenty more to come in the New Year.