This from a recent article in the L.A. Times, would love to hear your comments on this topic. What is happening in your corner of the market? Has everyone and their dog come out from the sidelines to make offers in the last few months or what?!
“The foreclosure market is turning into a drought, not a wave, and that has resulted in a lack of inventory,” said Sean O’Toole, chief executive of the firm ForeclosureRadar.com. "If it continues, it will likely mean that we’ve either seen a bottom — or have passed a bottom — in prices because of limited supply and still strong demand.
Bobbie Dunlap bought a bank-owned home for $225,000 that she intends to fix up and rent out. She had to raise her price to beat competing bids on the two-bedroom property in Bellflower…”
Many of our realtors ask us for proof of funds letters for their clients in order to be able to make fast offers, and beat out the competition. Most of these are fix and flip investors that are seeking rehab loans. But is this an old trick that no longer matters?
What are some other tricks for beating out the competition that you’ve used lately? Is this stiff competition happening in your corner of the market? Please share…
There will always be distressed property for sale. It all depends on who wants it the most. I live in Tampa, which has to be one of the hotbeds in the country. There are a gazillion wholesalers, loss mitigators and rehabbers here… and many of them make a good chunk of money. Some go REO. Some go seller-direct. Both are available.
It’s been this way here since I learned this business. My mentor taught me to never even consider the competition. Just go out and make it happen. And that is what I’d recommend to anyone. It’s all there for the taking…
We have a 10 day supply of Multi-family here according to my realtor. I can tell you that three offers that we’ve submitted this week, we’ve been asked to submit our HBO because of multiple offers. The rehabbers are trying to get premiums right now, but most of the buyers are financed, and so the same properties (as we’ve seen in the last year as we’ve been trying to buy) come back to market if it’s not a cash sale.
ForeclosureRadar.com is wrong there are lots of SFR for sale in the LA area. Bank of American told us yesterday they will be releasing over 300 homes in the LA area in the next 45 days. We are also seeing that most flippers are losing out on good deals because they set their sights on trying to make $50K per deal or don’t have cash in hand which the banks are looking at real cash buyers first. And you are 100% right that every Tom, Dick, Harry and crack head Susan are jumping in to buy and you ask why because they went and bought a snake oil salesman book that say you can buy with no money or you can make a ton of money and then give up your job at Wal-Mart.
Wow, you couldn’t be more right Maestro. Distressed property isn’t just something that is available in a down market when people run out of money. Distressed property is available in both up and down markets.
Situations will always arise in homeowners that will cause an urgency for them to move. It could be a new job out of state, loss of a job, divorce, death in the family, etc. etc. etc. There are numerous reasons why people will want to sell their house quickly and those circumstances will always be there, no matter what!