The Real Estate Resuscitation Leans toward the Rich Man

The new recovery is different in the reality that it is primarily affecting those within higher end areas. This time around, the recovery is prejudiced and leaving everyone else in the dark whilst the wealthy are enjoying this new market uptick.

If we have a glance at the major city regions of the United States and their Real Estate markets, a peculiar pattern starts to emerge. We'll see that large hedge funds and overseas investors or buying up the entire prime Real Estate in those areas. The typical man and woman are still making every effort to pay their rent because they got kicked out of their house several years ago after being foreclosed on.

These large institutional investors and foreign nationals are the driving influence behind our market nowadays. These groups of investors are not intrigued by rejuvenating run down neighborhoods or remodeling homes. They want something in good areas, which will rent quickly to upper middle class or high end users. They're looking for a completely turn key solution to their investing demands where they 'd have to invest little to no effort getting the property up to par.

This leaves the locals stuck several years earlier when the market place was slowly moving along. At this point there is still little if any chance for any form of a recovery for John and Jane Doe, especially the folks living in the ghetto.

So here we are once again with a market that is being artificially inflated with speculators. Foreigners, hedge funds and banks are practically purchasing our country. The new American Dream belongs to the wealthy individuals and groups of people. Albeit this does create a new opportunity for those who are smart enough to see it.

What also appears to be taking place are owners in the ghetto inflating their asking prices to absurd amounts thinking that just because they have a piece of Real Estate in an urban area, that it makes them and their property a hot catch. In most instances, when they see that their depreciated piece of Real Estate in the combat zone won't sell for $200k and sits on the market for 3 years, they'll finally realize that regretfully, the marketplace's appreciation is not favoring their neighborhood.

I feel especially sorry for those who are dealing with foreclosure and are hoping to sell their property the old fashioned way- with a Realtor and are trying to get what they owe on their over leveraged house. The real tragedy there is that these individuals have no idea that there exist companies and folks that are actually willing to come in and negotiate a reduced mortgage on their behalf and consecutively buy their house.

The Varieties of 'We Buy Houses' people.

Sam is a REAL 'We Buy Houses' Cash Buyer

Now let's get one point straight right out the door, most of the time when you see an ad that states' We Buy Houses' it is rare that the person or company who placed the ad will actually acquire your property. In many cases your telephone number and call conversation is recorded, stored and sold to 10's or hundreds of other individuals looking to get a great deal. This is what takes place when you interact with a marketing or list building company. Once you place your first call people will continuously call you on a daily or weekly basis for months or years afterwards, even though you sell your property. You're going to want to avoid this outfit or if you call them, use a disposable number.

The next kind of entity is what we're going to call a middleman. These are typically individuals that have recently went to a boot camp, class or seminar about lining one's pockets in Real Estate. In most cases these individuals conduct business for anywhere from two to four months then afterwards completely stop without ever actually helping anyone. You can typically spot these individuals with their hand written bandit signs on the side of the road, cheap posted flyers or vista-print business cards. Their advertisements vary in verbiage from 'I BUY HOUSES' to 'Sell Your House Fast for Cash.' If you contact this individual you'll notice that they sound nervous, unsure of themselves, and completely ignorant about everything that pertains to purchasing property. If you end up working with this person ninety nine times out of ONE HUNDRED times you will find yourself wasting time and not even signing a contract. In this particular business especially, if you are facing pre-foreclosure, time is of the essence and you need to deal with someone who understands what they're doing. What they are trying to accomplish is write up a contract for the property and resell the contract before they close on the deal. There are very few people who are available in the marketplace who know how to carry this out successfully. You can tell the novice from the experts by what they know and how confident they sound over the phone and when and if you meet them in person.

Next on the list are Real Estate Investment Trusts also called REITs or hedge funds. The chances that you will actually encounter this variety of group or anyone representing them are slim to none. They normally work with experienced wholesalers and people who purchase property at a deep discount and re-sell to them very quickly. They normally pay anywhere from 85 to 100 percent of the actual value of the property in its as condition. These outfits are seeking to buy and hold for the long term. You would probably be best off dealing with this entity because they purchase with all cash, are very easy to deal with and are serious buyers. Unfortunately, it is extremely difficult to find them and you'll have to depend on the people who actually market for purchasing services in order to gain from their activities.

Aside from everything that I have listed above we're now going to visit construction companies or real estate development companies. Depending upon the marketplace these individuals can pay a premium for your property but in many cases it would be greatly discounted. They are primarily attracted to property that ought to be completely renovated, lots that have the potential for development, or properties that will need to be razed. These Real Estate construction companies are easy to deal with but they're also in the business to generate income and will never offer the full retail value of your property. These entities are also difficult to find but they're not as difficult to find at the hedge funds.

Lastly, we've got individual cash buyers. Some individual cash buyers like to market for properties and will actually purchase a property cash but it needs to make sense for them as many find themselves in the business to earn money as well. There are others who are people who simply want to buy a property for themselves and their families and have the cash to do it. It is rare to find someone like this but when they do come along and offer something for your property it's best to take them seriously. When you were speaking with an individual cash buyer you will know because the same person you talk to is the a same person who will see the property and buy the property from you. This would be an ideal situation and you must learn exactly how to spot these individual cash buyers.

South Florida Real Estate Market Cycles 2014 - 2015

 

In this article we're going to discuss the things that move the market place up down and sideways. We'll also delve into the class structure of the market and why some areas are appreciating a lot more than others.

We've all been through quite a joyride in that last number of years, haven't we? The Real Estate market has gone up, down, left, right and sideways - sometimes in a rapid succession. Now we're beginning to feel some form of a recovery in major metropolitan areas such as San Francisco, Miami, New York and Phoenix. This new market does not seem to be nourished by mortgage backed buyers like it was in 2004 - 2006. This new market looks more like an environment tailored for cash-buyer speculators.

Yes, thats right, I said the 'S' word. The marketplace is being flooded with overseas speculators that are once again causing prices to be driven up for Jane and John Doe. Whats peculiar about this Real Estate market revive is that it is happening primarily in upper-middle class to high-end communities. If you focus on the Real Estate markets of the city, you'll notice that the lower-end districts and ghettos are not experiencing any form of appreciation what-so-ever. As a matter of fact, there are still many abandoned and condemned houses lingering around in those areas.

If we take a trip back about a decade from 2015, you'll see that prices where increasing everywhere. People in the inner city were getting rich, albeit temporarily as they 'd splurge all the money they 'd receive from proceeds of sales on 24's, from selling off their properties. Their clients included a mixture of people getting scammed by home mortgage brokers, international investors, speculators, companies and clueless newbies. Now, just because this has all happened historically does not mean that this same group of people don't still exist, they do, but they still don't have any purchasing power as lending is still pretty tough in this market.

Now, what we've been seeing are a great deal of hedge funds coming into the market place and buying properties. This is probably occurring because they're seeing prices rise as a result of activity from these cash-buyer speculators from Europe, Asia and South America. These hedge funds are more attracted to seeing higher returns in Housing because the stock market has not been treating their capital very nicely in the last couple of years. Wall Street is coming back to the market again but this time around its not through mortgages, equity credit lines and other kinds of loans. Now, Wall Street is pouring their money directly into Real Estate and completely eliminating the consumer.

Eventually things will cool down and wall Street will retreat to the stock market once again. In the mean time there are plenty of opportunities no matter what is happening in the market, you just ought to know what you're undertaking.

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