Contrary to the impression that some fear-mongers are trying to spread, savvy investors and real-estate experts know that the best days for flipping distressed single-family REOs are just ahead.
It’s said that you can fool anyone for a while, and you can even fool the majority of people for a short period of time, but the truth will come out. This seems to be exactly what has been happening in the real-estate industry and media recently. Insiders, bank CEOs, and government strategists, as well as media outlets looking for stories to spin, have been selling hard the idea that foreclosures are over.
They want to breed positivity and spending, push up home prices, and get buyers to fatten their pockets with big commissions by bidding far above asking prices. And guess what? It’s worked. But now we know that now we’re about to witness a far larger load of distressed loans on their way to becoming REOs.
Positivity is good, and the housing market is mending. Prices are truly rising, and that’s great. But don’t let those controlling the media rob you of your share of the wealth and profits by turning you off so that they enjoy monopolies – or make money on you.
RealtyTrac recently broke the news that, contrary to claims in the news, the real data shows national foreclosures up 6% last month, with foreclosure starts rising in 26 U.S. states in July 2013. Behind these homes are many billions in delinquent mortgages likely to become distressed REOs over the next 24 months.
While demand for U.S. residential property is still high and heating up, bidding wars are actually down. Bidding wars have made acquisitions very frustrating for many investors recently, but they seem to be moderating.
According to Redfin, only slightly more than half of agents now report facing multiple offer issues in the 26 major markets they deal in. This means access to better deals and discounts for those flipping distressed REOs.
At the same time homes are enjoying rapid price appreciation, which pros know is the best environment for flipping houses.
So cultivate those bank connections, dig into the data, and flip more houses.