Investors are facing fierce competition, lots of cash buyers, and a trend that has curbed the tide of foreclosures.
If you are just now trying your hand at buying investment property in Livermore and Pleasanton, you may have missed the boat. It seem the boat left last year. Back when regular folks were lamenting about the horrible market, savvy investors were picking up sweet deals left and right. Fearful buyers worried why nobody else was bidding on the property they seems interested in. Boy, how quickly things change. One smart client who picked up two great deals in Livermore last year in the $219k-$230k range now would see these same two homes sell for at least $240k – $260k. To say she did well, is an understatement. The lower end has jumped. This jump was inevitable.
Entering the market today you will find that the savers have come out of the wood-work. They are flush with CASH, CASH, CASH. Multiple offers are not only common in the Tri-Valley, they are being seen all over the California. Investing has become quite popular and if you enter the arena you will be met with fierce competition. What might be stopping investors now?? Bulk purchasing, that's what.
Bulk foreclosure purchases are competed by hedge funds and large organizations. They are being allowed to purchase large quantities of foreclosures at deep discounts. They will probably be renting these homes out in a hot rental market. I'm sure eventually they will be fixed up and sold for a hefty profit as well. This shrinking of "potential inventory" is taking it's toll on the middle investor. The middle investor is the guy who works on a team at the county courthouse helping others buy homes, or the one who tries to " flip " homes by purchasing in the resale market. The courthouse auctions are getting bid up with the inflow of "green" investors, making the good deals less and less likely. Unless foreclosures get released singularly, we will continue to see a battle go on with buyers trying purchase their investments. Simple supply and demand dictate this.
If you are interested in picking up your first investment property please contact me. Although it is challenging, it is not impossible. With some due diligence and preparation, you too can take advantage of some fantastic deals.
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