Are real estate deals running dry due to increased competition from big bulk buyers or the mortgage settlement reducing foreclosures?
Is the real estate market getting better? Absolutely.
Does a hotter housing market mean more competition for real estate investors? Yes – but that shouldn’t scare passionate investors away.
Many complained about the beginning of the foreclosure crisis and how “it was the end of deals” – so how can the opposite be true now?
Yes, real estate investors have been spoilt with a plethora of low priced, distressed deals and mountains of housing inventory in last few years but the crisis has also hampered real estate investing with a lack of confidence among the public and a lack of buyers.
As the upturn takes off we are experiencing a new real estate rush. This is just what investors have been begging for and means faster flips and higher premiums on re-sales as well as increased cash flow from rentals.
Big hedge funds are barely making a dent in the inventory out there despite their dreams of scooping up thousands of properties a year. The current lag in the foreclosure process and massive amount of defaulting loans in the works means plenty of distressed home deals for another few years at least but even when they are gone there will be plenty of other distressed & discount opportunities as there has always been.
Look back at ‘04 when even novices where buying near top of market but could flip houses for $30k to $100k in a day or at least before their first payment on leverage was due.
This is truly an amazing time to invest, full of opportunities with plenty of access to low priced distressed assets if you know where to look and with soaring retail prices and demand comes big spreads. What more could you ask for?
Scared? Then sit on the sidelines for next decade or two till we hit another housing peak and plenty of investors will be glad to sell you their deals for 100%+ returns and then buy them back at 50% off discounts a few years later. Or get in the game now and cash in on one of the best markets for real estate investing you may ever experience in your lifetime.