Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
It seems that in the last several weeks many new investors have come to the market to put funds to work. Is anyone else noticing this trend? If so, do you think it is tied to the economy or a general feeling of confidence about how things are trending?
Has your investor base grown appreciably recently? It seems that banks are loaning money in my neck of the woods more readily as well. Has anyone else noticed this?
I think it is tied to the economy in Texas. Employment is better than the national average and the 2010 census painted a very robust picture for Texas in terms of population growth. In my book they are the two key ingredients for cash flowing properties.
I have the feeling that a lot of these investors putting money to work are from out of state. Perhaps people who made fortunes in the bubble states and got out while the getting was good now see Texas as the next big thing.
Just my 0.02 worth from what I see going on in the trenches.
In terms of the US economy as a whole, I dont believe in the fiat currency. But I dont understand the whole QE thing. Does the treasury just go into debt to the FED and then print or otherwise digitally create the currency? Weird stuff.
To be positive about REI:
People who know nothing about Real Estate are starting to see the opportunity that low prices can create. Just the other day, our lawn maintenance guy was talking about buying a house. This tells me that we may not have long at super duper low prices.
Didnt Wells Fargo just drop their minimum FICO's on FHA loans below 600 if you put 10% down? That sounded aggressive to me. But that was just an email I got from a broker. I bet the underwriting on those files will still be a nightmare if any of it ever gets closed.
And yes we are getting calls from new investors, seasoned investors, and even people who got their butts kicked in 2007 that are ready to go back in swinging.
I'm getting consistent calls from rehabbers for my short sales. It's good to have a strong buyers pool.
I HEARD that there will be a 203K program for INVESTORS. Now I have NO idea if the source is reliable (it was a Realtor) but I think that would be GREAT for so many people wanting to break into the rehabbing business. Of course it doesn't mean things can go wrong. I sure hope they have some tight guidelines, but it would help with the REO inventory on the market for sure...OH and short sales :)
In terms of the US economy as a whole, I dont believe in the fiat currency. But I dont understand the whole QE thing. Does the treasury just go into debt to the FED and then print or otherwise digitally create the currency? Weird stuff.
This is one of the reasons I am so bullish on RE at the moment. Even if the market takes a long time to recover from the recession and even if mortgage rates rise, the amount of inflation coming down the pipeline should help RE to perform handsomely in nominal terms and probably come close to treading water in real terms. A lot better than can be said for those Federal Reserve Notes in your wallet.
I am seeing tqo different things happening here in CA.
For banking, they have made it so difficult on borrowers, buyers are fewer and fewer and as such, make it more difficult on the flip side of investments.
From private investor money, I am seeing more and more investors wanting to park cash into RE flips than ever before (not counting the bubble of ridiculous speculation)