Real estate investing pros are stacking up masses of cash, not just from rehabbing REOs but as easily as assigning their contracts but how much longer do we have left?
Forget buy and hold cash flow, big money, fast money…the amount of money being made from real estate investing and flipping REOs is “sick”!
Well, at least for those not making it.
However, this is an amazing opportunity for making money that certainly won’t last forever. Not with these types of margins in these types of volumes anyway. News of Fannie Mae and major lenders launching new bulk REO deals for those who want to be landlords has been all over the headlines for the last few months but there are many other strategies in the works to slow down the foreclosure hit too.
In fact a report from the New York Times recently highlighted the fact that homeowners aren’t just ‘getting away’ with staying in their homes without paying anymore, some lenders are actually paying their bills so that they do stay and are not harassing them for payment at all!
It sounds crazy but a somewhat logical move when you really take into account what the cost of foreclosure is, plus the new requirements on lenders to maintain these properties and perhaps most importantly the crushing impact foreclosures have on bank’s other assets.
Real estate investing companies have been complaining about the lack of inventory in many areas of the country for a while already and it’s getting worse. If REOs don’t soon become more expensive than other homes found on the MLS they will certainly become much harder to come by at least in the busiest cities attracting international buyers.
Don’t give up hope. This simply means brushing up on your real estate education and getting wired into the latest news and tips is more important than ever and that you should rake in all the easy money you can right now. While keeping an eye out for new real estate investing niches to go break into.
For those with cash or at least access to funds you should know that there is a much bigger reserve of bank owned real estate that dwarfs the REO pool most are chasing. Construction REOs make up over 40% of all REOs, at many billions more than owner occupied residences. How big of a discount do you think you could negotiate on those, especially with far less competition chasing them?
