2013 is expected to be an amazing year for real estate investing as home prices rise and sales continue to pick up, but are fears of too much competition unwarranted?
We’ve all heard of the expected increase in foreign investment in the U.S. over the next 12 months and more Americans are certainly talking about getting in or back into real estate investing across the country.
Many have feared that on top of giant private equity firms converting REOs to rentals and other major players this would make it tough to find deals in the year ahead, but most are probably panicking unnecessarily.
Some major players are already getting out of the distressed residential real estate sector. This includes builders for a start. Some of the largest including Lennar and Toll Brothers, on seeing revenues and profits surge almost 50% recently exiting the foreclosure business and are going back to what they know best. This is no doubt partially because they simply weren’t prepared for or equipped to deal with the mass of property management or rehab on that scale.
This is likely a sign some other big investors will follow suit too, especially with commercial real estate making a comeback.
There is still plenty of business and demand with lots of foreclosures for real estate investing and flipping houses ahead.
However, while it may be easier to compete against the newbies, instead of taking advantage of them as some unscrupulous investors have done in the past by passing on dud deals why not share your real estate education sources with them and point them in the right direction? They might become some of your best partners in the future and there really is enough money to be made by everyone.