2015 has been a year of real estate recovery. The rental market holds strong in most areas around the nation and Wall Street has their hedge fund investors in some major cities buying everything they can get. They have been to Phoenix AZ, Atlanta GA, Tampa FL, Los Angeles, CA, San Francisco CA, and many areas that you may not even know. They buy hundreds of houses at Foreclosure Auctions and contact realtors to make offers. They are paying upwards of 95 cents on the dollar and it is pushing the smaller local investors out of the market.
Their goal is to rent these properties for a while and they plan to sell sometime in the future. Some suspect they are planning to package all the rents and sell them on Wall Street. As I attend the foreclosure auctions all over the nation, I talk to many local investors that say they can’t compete with these guys and they don’t know what to do.
Well, my take on it, is you don’t have to compete with them. Ever since the foreclosure crisis of 2007 began, we investors have constantly had to learn to adapt to the market. Things are always changing. This is no different. As I meet these and talk to these hedge fund investors, I have found out what they are looking for. In my area of Atlanta GA, they say they like any house that is $150,000 or less for a good positive cash flow. I have seen them buy 200-400 properties at one auction. They have a certain price range they like in any city. You can use the courthouse records to figure out their strategy if you are afraid to ask them.