Carpe Diem. It’s the season for even sweeter spreads on flipping homes. Get your money net ready because it’s about to rain for real estate investing pros seizing the day…
A new Realtor.com survey reports a massive jump in interest in foreclosure homes. 65% of buyers reported they were likely to purchase a foreclosure, up from just 25% in 2009. This could be a great thing for real estate wholesalers.
Still, 56% of those surveyed said they were afraid of massive ‘shadow inventory’ being released on the local market. This is in spite of RealtyTrac Inc. reporting foreclosure filings dropping to a 5 year low last month, and down 14% year-over-year. Even though some media outlets are putting a negative spin on the positive home price figures which are being released the truth is that most retailers have already missed the bottom of the market by a long shot, though homes are still so affordable they can’t afford to pass them up.
Right now real estate investing is enjoying a sweet spot. Discounted deals are still out there and retail prices are rising. Even though competition for foreclosure properties is pushing up prices a little, as more buyers jump into buying retail this should continue to offer large spreads through the summer and at least until November.
Too many investors are getting hung up on the price of REOs rising. Who cares if a seller now wants $2,000 more than a couple of months ago if you can flip that home for $10,000 more to an end buyer tomorrow?
Real estate investors may have to dig deeper, search a little harder and get a little better at making connections with bank execs and referral partners but there are plenty of deals to be found.