Besides tapping into great deals on HUD homes, Fannie Mae’s HomePath program and REOs across the country there is now another great way that real estate investing companies can cash in on the woes of US banks.
Banks across the country are now demolishing inventory at an increasing rate. With many of the homes they are taking possession of going unsold and some markets too saturated with inventory they are now simply tearing them down. This is now going on in many states including Ohio, Michigan, Texas, New York and California with more expected in Georgia, and Pennsylvania.
So for a start real estate investing companies are going to benefit from less inventory on the market which will add to the value of their homes and help their equity to grow faster. Though there are other opportunities for forward thinking real estate investing pros too. If you have crews on staff full time know that Bank of America is now willing to pay $7,500 a pop for their properties to be torn down. So perhaps you can keep your workers extra busy and make a little extra profit, while speeding up this process.
However, these properties aren’t all being torn down and kept. Wells Fargo, J.P. Morgan Chase, Bank of America and Fannie Mae to name a few are also donating hundreds of properties. Besides the write offs for these organizations the hope is that these lots will be converted into parks and recreational areas or other public services which will improve the quality of life and value of the neighborhoods in which they are located. If real estate investing companies can identify these areas and buy neighboring properties now their values are likely to rocket in the near future, offering even better returns.