If you are looking for the deals in foreclosed upon real estate, you are not alone. With the base in the market solidifying it is not just families looking to capitalize on the foreclosed upon inventory.
Because the investors are back.
The stories are out there of investors coming in with all cash offers trying to buy up foreclosed upon or distressed properties. Real estate investor sites such as BiggerPockets.com and GetRealREI.com are seeing traffic surges as investors are back.
“It’s a feeding frenzy right now,” says Shawn Jardine, a real estate agent in Colorado Springs, Colo., who lists properties for a major bank in addition to renovating and flipping homes herself. “On one property listed for $65,000, I had 15 offers. The best offer won at $20,000 over asking price.”
In short, investors are returning to the real estate market: Seventeen percent of those looking to purchase a home will buy an investment property, according to a survey by Move Inc., a real estate website that lists rentals and new homes. That’s more than three times the share of home buyers who were looking to buy an investment property a year ago. via CSMonitor
This is a great sign for all involved. The investors will provide the base of the market, creating a foundation for others to build upon. No one wants to buy an investment that will lose money, and that has been the fate of the real estate market for large parts of the nation the past few years.
Let’s hope they are right.
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I also see a lot of first time homebuyer’s looking to purchase bank owned properties. Of course they are not cash buyers and often lose the property to an investor, but 95% clients that do get the home, usually financed with a renovation mortgage, end up with a better equitable position than if the purchased a privately listed property.
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