Here’s an interesting article regarding real estate investors, and the current housing market.
This says 1/3 of all new home sales (currently) are ALL CASH purchases. Interesting, eh? As I have said, and I will say it again, buy, buy, buy if you have cash. You might make yourself an extra million or two.
http://news.yahoo.com/s/ap/20110223/ap_on_bi_ge/us_home_sales
i didnt read the article, just the stat. i would venture to say it isnt just because wealthy people are buying more but that stat is skewed because lending is so tough and people arent buying on credit. i wonder if it is more of an issue that credit purchases have dropped off and therefor increases the percent of cash buyers that have been buying cash all along. our good cash buyers that have been buying steadily for the last 20 years didnt bat an eye during the bubble or the burst. they just kept buying at their numbers at the same pace. i probably shouldnt be lazy and take the time to read the article, but oh well…
Good article, Thanks
Something has to give with the tighter lending standards, until it does the market will never fully recover. Obviously we don’t want to go back to “if you can fog a mirror I will approve your mortgage” days,but today its just too hard for the first time buyer,I have people renting from me that would be buyers except with today’s standards they just can’t qualify (not that I’m complaining because they are better quality tenants)
andy
The article is presenting a real problem: on a personal level, cash investor can buy some great properties, but for the economy as a whole, this is slowing down recovery even more.
Cash buyers are looking for bargains of course and keeping prices low: while retail buyers have hard time getting mortgages and when they do, with so much housing inventory, they push the prices down as well.
Appraisars have not real good comps to base their valuation on, therefore it is a big stale loop of distressed sales.
Something will have to give soon, but in the meantime, yes, it is a Gold Mine for cash investors!
That is a great article indeed.
There is a lot of great opportunity out there for everyone from sellers, buyers, investors and agents/brokers. The only real loser here are banks and mortgage brokers in my opinion.
Sellers can take advantage of some great owner financing opportunities and get much better returns than they might get if they were to sell and put the proceeds in the bank. They can even structure transactions that mitigate some of the price decline they’ve seen if they’re creative enough and can find a win-win situation with the right buyer.
Buyers can buy properties creatively now that sellers are being “encouraged” by the market to consider flexible financing and creative offers to buy. I think this is a huge opportunity for buyers that recently experienced bankruptcies, foreclosures and short sales to really get back on track financially faster than they’ve ever been able to before.
Investors… where do I begin… what a great environment to be buying and selling and never before have we had a better market for those that take the little time to get properly licensed to raise private money to raise all the private money they’ll ever need.
And agents/brokers… with fewer agents/brokers sticking it out, the smart ones are realizing how to serve buyers (owner occupant and investor) and sellers creatively.
I can imagine myself saying, “Remember back in 2011… it was like the best real estate market ever!”
This is a HUGE opportunity.
For investors, this is a great opportunity, but for the country as a whole, I see it as something that will be looked back on as a detriment.
Rich
Thanks for the reply Rich.
I believe this is an opportunity to be of massive service, a force for good and help make it a positive thing. I believe it can definitely be a good thing overall. If we focus on doing as much good as we can in each thing within our control and each transaction we do I believe we can make a huge positive difference.