Home Speculation Pro’s Still Going Strong As Amatuers Run to the Exit : The Real Estate Bloggers

Home Speculation Pro’s Still Going Strong As Amatuers Run to the Exit

December 17th, 2006 • Related • Filed Under

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We have heard and talked about how the speculators and flippers have left the housing market. We have even surmised that a big part of the problem in housing inventory issues are because builders saw a demand that was an illusion because these speculators were so rampant.

NodaBut an article in the Charlotte Observer caught our eye and reminded us that speculators are still going strong. It just is the professionals that have been doing this for a long time and are very good at it are the ones that can make money at any level. And the reason, they are so far ahead of the housing trends and have deep enough pockets they can outlast the speculative bubbles that pop  up.

Real estate in Charlotte is big business, especially near the uptown core. High-rise condominiums will soon battle office towers to dominate the skyline. Young professionals seeking quick profits often snap up proposed condos long before ground is broken.What Patterson does, however, is different.
By the time a neighborhood is wildly popular among ordinary investors, the hardcore speculators have sold their properties and moved on.
Another golden rule: They invest mainly in low-end communities with a view of the city.
In the 1980s, about a dozen Charlotte-area investors often gathered at auctions to divide up foreclosed houses, says Jaffa, of Graham Investment. Only about six, he says, were major players.
Today, there are about 40 to 50 serious investors in Charlotte. They finance deals through independent lenders who frequently charge 15 percent interest rates because of the high-risk nature of the loans.

Read the rest in the Charlotte Observer.

Related posts:
  1. Real Estate Speculation Moves in to the Gulf coast States following hurricane Katrina & Rita
  2. Real Estate Speculation Moves in to the Gulf coast States following hurricane Katrina & Rita
  3. Even After Real Estate Slowdown, Nevada is Going Strong
  4. Houston and Austin Real Estate Markets are Still Strong
  5. Housing sales fall in 40 states in fourth quarter, Thank God!



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There Are 2 Responses So Far. »

  1. Comment by Geardao Lopez on 19 December 2006:

    Speculators may be leaving the market, but investors are still around. Remember speculators are not investors. If you want to check value in Florida use http://www.appraiserking.com. they are appraisers conducting all types of appraisals including condominium, vacant land, home, house and real estate property appraisals. We cover all over Central Florida FL including Orlando, Kissimmee, Deltona, Altamonte Springs, Clermont, Celebration, Davenport, Lakeland and Longwood, Sanford, Winter Park. By County we cover: Polk, Osceola, Orange, Volusia, Seminole and Lake

  2. Comment by Brad Hilliard on 3 January 2007:

    HomeOwnerPlanet.com is an online community that connects people with homes and lets you list your homes for sale or rent, and find a home for sale or rent. Whether you are a homeowner looking to sell your home, someone looking to buy or rent a home, an investor looking to list or sell an investment home, or a company looking to list many homes for sale or rent - this site is for you.
    The site is currently servicing the Charlotte, North Carolina metro area.

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