Hello, this is Dave at TitleSearch.com. In this video, we’re providing a market update tailored to our clients engaged in foreclosure investing. As of May 2013, there are several pivotal factors contributing to the appeal of distressed property investments. Whether you’re exploring mortgage foreclosures, tax delinquency foreclosures, or other types of foreclosed liens, these market dynamics present opportunities that savvy investors may want to capitalize on.
Key Factors Favoring Distressed Property Investing
- Increased Inventory: For the first time in a while, the market is experiencing an influx of available inventory. Historically, there was a demand for distressed and discounted properties, but the lack of available inventory hindered investors. Now, banks are releasing properties into the market, opening up new possibilities for investors.
- Limited Competition: Unlike the early 2000s when there was a surge in real estate investors, the current landscape offers less competition. Many individuals who entered the market during the 90s tech boom have exited due to the challenges posed by the recession in the late 2000s. This creates an environment where only those with a sharp eye for opportunities are actively participating.
- Strong Retail and Rental Demand: Whether your strategy involves flipping the property, renting it out, selling to another investor, or retailing through MLS, there’s a robust demand in both the retail and rental markets. Homeownership rates are lower, pushing more individuals into the rental market. Simultaneously, those looking to buy face a shortage of available properties, creating a favorable climate for investors.
- Strategic Lender Inventory Release: Lenders are managing inventory release volumes to maintain property values. While they want to get properties into the market, flooding it could adversely impact values. Major investors, including Wall Street hedge funds like BlackRock, are buying in bulk, indicating confidence in the market’s upward trajectory. Individual investors can leverage this trend by piggybacking on bulk purchases.
Tools for Foreclosure Investors
As a foreclosure investor, there are valuable tools and resources to enhance your decision-making process:
- Foreclosure.com: A platform offering a comprehensive list of properties from various sources.
- TitleSearch.com: Our site provides tools for due diligence on title history and risk analysis, assisting you in making informed investment decisions.
- RentRange.com: This tool offers insights into potential future rental values, allowing you to project returns on your investment.
Leverage Experience and Seek Guidance
If you’re an experienced investor in the foreclosure and distressed property market, leverage your knowledge as a valuable look-back opportunity. Reflecting on the past can provide insights into potential future cycles.
Should you have any questions about foreclosure investing or need assistance with due diligence on properties, feel free to reach out to us anytime. You can contact us through our website at TitleSearch.com, and our team will be happy to assist you.
Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial or investment advice. Individuals are encouraged to conduct their own research and seek professional guidance tailored to their specific circumstances.