Big Market Players Focus on Filling Homes with Renters

Hi folks,
   I like to consider my readers as quite familiar with the way the Real Estate market works, namely, the ebb-and-flow of buying properties and selling properties. With that being said, you know that Investors make up an important chunk of overall home purchases. However, per data from the National Association of Realtors (NAR), in early 2009, 25% of homebuyers were investors. Earlier this year (in February), they made up 22% of home buyers, but then, in July, that figured dropped to 16% Nationally.

   "Housing has morphed from a form of shelter to one of the most popular tradable assets, thanks to a huge influx of institutional investors in a mammoth, albeit decreasing, supply of distressed properties", writes CNBC Real Estate Reporter Diana Olick. Olick adds that this is why, "...it should come as no surprise the housing market is now nearly as volatile as the stock market". Indeed, it is volatile, but what happened to all of these investors?

   Not too long ago, large investors like funds Blackstone and Waypoint were buying properties by the bushel, and pushing up home prices. But now? Well, with all of the homes under management, they are working on filling the homes with renters, as Olick wrote in her article, "As investors shift, housing is the new stock market", now investors are focusing on filling those houses with renters.

   With the slowdown in investor purchases, Olick say that there could be a consolidation of investor firms (larger firms buying up smaller players). But the volatility remains. A contributor for Olick's story was Glenn Kelman, CEO of Redfin (an online real estate sales company), who said that, "We've seen more volatility in real estate in the past five years than we have in the past 500".

   Stay strong and Stay tuned!

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com

HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com



TAGS: #RealEstateinvestor #buyingproperties #sellingproperties #homepurchase #Realtor #NAR #distressed #housingmarket #sales

Property Flipping Redefined?

Hi Folks,
   Glad to have you back !

   There have been so many changes to Federal, State, and Local legislation over the past few years since the financial meltdown, that it had me wondering if all of these changes have redefined what is traditionally referred to as, "Property Flipping". To those of you who are unaware of what "Property Flipping" is, it is basically purchasing a home and flipping it, or selling it in a short period of time, preferably for a profit (the goal!).

   We spoke to an investor who gave us his view from the front lines for his input on this question. "I feel that property flipping has been redefined by legislation through the government and lenders playing the game of shadow inventory", says Phillip Vincent, a Realtor and Real Estate Investor in St Louis MO. Vincent says that, "They try and control the market thru these tactics. So as to not flood the market with all the home that are actually on their books."

   Vincent tells us that as an investor, "we look to purchase properties monthly, that we will fix up, re-hab, and bring back to market. These properties are taken from eyesores on the street to one of the nicest on the block. I have been called an ambulance chaser by fellow Realtors, for buying properties on the cheap, but I feel the cit(ies) we live in are made better by what we investors are doing."

   In addition, he tells us that legislation has affected, "the amount of auction, bank homes we have to choose from.", and says that, "We are currently having to look at dreaded short sales for our next projects."

   Are you a Real Estate Investor? How has legislation helped you or harmed you? We'd love your input on this topic.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com