Real estate investors have become increasingly disenchanted with acquiring foreclosures from auctions and REOs through brokers due to the immense competition and skyrocketing prices but there are other options too…
Those focused on wholesaling real estate and that demand the largest spreads in order to keep up profit margins can find great golden nuggets in marketing direct to struggling homeowners early on in the pre-foreclosure process. However, this can require a lot of work and marketing savvy in order to be fruitful on a large scale, consistent basis.
Much of the competition for those wholesaling real estate today comes from large hedge funds and private equity firms raising hundreds of millions to scoop up bulk packages of REOs.
It’s good for smaller investors to take note of how these entities are acquiring these portfolios; in bulk direct from banks or by building a network of real estate brokers for a constant feed of REOs, as well as of course dominating local foreclosure auctions.
However, it is important to note that while these entities can be fierce competition they often won’t ultimately end up keeping all of the properties they acquire. They are often happy to let some go quickly to recapitalize and some may not be in rent ready condition, making them a better deal for those experienced with rehabbing properties. This means instead of just chasing down REOs and banks investors need to find course which provide contact details for these funds too.
Of course CT Homes also offers access to discounted and wholesale real estate deals too. So if you are looking for a new source of viable real estate investing deals or just want to get a great deal on your next home or vacation home contact us today…
