The last couple of weeks have seen many reports in the news reporting a surge in real estate investing activity and a return to the market by many investors who have been on the sidelines. So is this a good or bad thing for real estate investing companies and individual investors, and what are the real facts?
A survey of real estate investors by Move, Inc. provides a little more detail into what real estate investing pros are up to and are planning. Perhaps most notable is the fact that 33% of investors said they were planning on buying a home in the near future compared to just 8.6% of typical retail buyers. This is about a 3 to 1 ratio of investors to regular buyers. In some circumstances this could be worrying for real estate investing companies if these investors where just involved in long chains of flipping houses and pumping up values. However with so many investors and real estate investing companies opting to rehab and rent properties, a large demand for rentals and what some may consider a shortage of wholesalers there should be no reason for concern.
What is also interesting about this real estate investing survey is hearing other investors opinions on the market. Over 69% of those surveyed said they expect it will be easier to find properties in the near future. It is great to see investors bullish on the market, but with such a supposed glut of foreclosures on the market it makes you wonder why the other 30% seem to think finding deals is so difficult. Perhaps a lack of a good source for wholesale properties?
When questioned about their opinion on their competition with first time home buyers for the best real estate investing deals 65.5% of investors said that they expected the issues first time buyers have getting financing today will give investors an edge. 18.5% also said that they would only be buying cash, something most first time buyers can’t do. 80.5% also anticipate cash discounts on the properties they are buying too.
So in summary, those in the real estate investing game may be facing a little more competition for deals in the coming months, however the great news is that there are plenty of other investors for flipping houses to who are cash buyers and need access to a good source for wholesale deals. Sounds like you have got it made!