Opportunities In Today’s Real Estate Market
Opportunities In Today’s Real Estate Market
When it comes to locating suitable investments, qualified investor buyers will have more opportunity for the following reasons.
- Fewer Buyers. Now that the $8,000 credit for first-time homebuyers is expiring, there will be less competition from buyers looking for the same kind of properties that make good investments.
- Plenty of Inventory. Although there is talk of improvement in the housing market, foreclosure rates continue to increase. Nationally, 1.47% of single-family homes are in foreclosure, an all time high. Although 1.47% doesn’t sound like much, it represents a small percentage of a huge number, and a continuing supply of new properties in the marketplace
- Motivated sellers. Lenders will always be motivated sellers since they absolutely have to sell to recover as much as their principal is possible. Owners who are not yet in foreclosure but cannot make their current mortgage payments also represent very motivated sellers. Mortgage delinquency rates are at 9.24%, an all time high.
- More Stringent Underwriting Guidelines. While this may make it harder for some investors to buy, lenders will be eager to make loans to investors with stable finances, larger down payments, and good credit history.
- More Renters. Marginal buyers are being forced from the marketplace. That means more customers to rent your investment properties and provide cash flow to help make your mortgage payments and build your net worth.
While some investors are looking for a property they can steal, they end up spending too much time trying to find huge bargains and end up with nothing. In markets like this it is sufficient to make a good buy and start building equity right away. The coming fall and winter months are a good time to start. As always, I am willing to counsel Cindy’s clients at no charge. Check my blog for more information about investment strategies.
- Phil Storms
« Building Wealth With Real Estate | Home | 2010 Denver Metro Housing Survey »
Comments
Trackbacks
Leave a Comment