June 27, 2012 · 2 Comments
Time to stop the whining; there is over $6 billion in private money waiting to fund or buy your flips right now!
Yes, REO prices have nudged up, conventional mortgages are tough to get and some sellers are becoming more miserable to deal with. Get over it; others have made many millions of dollars in far tougher real estate markets.
There are still masses of real estate investing deals to be found out there, there are more buyers than there have been in years and there is a ton of cash just begging to be used.
According to Bloomberg there is at least $6.4 billion just sitting idle in private equity funds waiting to be put to use for real estate investing. Unfortunately those in control of it seem to be doing a horrible job of deploying it. Poor investors, maybe you can help?
Clearly the returns being paid can’t be very appetizing if money isn’t being put to work and security could be a myth if it isn’t busy creating yields really soon. With the banks pulling back from their bulk REO strategies these funds are becoming even more starved than a few months ago and the acquisitions most are making seem to be desperate attempts to get money in the street without doing proper due diligence. It doesn’t take a rocket scientist to figure out what that will lead too. Just wait till they figure out what horrible condition these properties are in and how much more difficult and expensive managing them is than they expected.
Perhaps this is your time to shine in real estate investing. Can you develop some wildly profitable partnerships here? There have been other who have done a horrible job at marketing and have promoted some of the worst real estate investing deals in the nation and still bagged $1.5 billion by working on strategic partnerships.
Even if you can’t grab a slice of this money pool it indicates there is a lot more money floating around out there to be used for buying and flipping your wholesale deals. Go get it!