Why are investment properties Selling So FAST?

Question

Hello BP,

I've been working diligently the past few months to pick up some investment properties.  It is baffling to me at just how fast the properties are selling!! Properties are selling above asking price, lots are over priced and a lot of all cash deals. One duplex sold so fast earlier this week to where I didn't even get a chance to put an offer in on it.

Are investment properties selling so fast right now because of the low interest rates?  What is it?

Ryan Copeland · Answer

@Joshua D. asking 20k over list price with an ARV of 220k was easy math 🙂. I would've made that offer too.

Bill P. · Answer

@Ryan Copeland IMHO, all hard assets are increasing in price and selling quickly due to low interest rates now AND the inflation wave that will show up pretty soon. It doesn't matter if it is bicoin, commodities or real estate....they are all on the move.

Matthew Brownrigg · Answer

I think it is a mix of things. Low interest rates are definitely one of the reasons, you are borrowing money at a ridiculously low rate. Also I think security is another reason, I think people are unsure of the future and real estate has been a tried and true long term return for people.

Joshua D. · Answer

@Ryan Copeland

People are seeking yield for their money.  10 years ago yield was laying everywhere! Now people got to turn over Evey rock to find good returns.  They are still finding them but it's harder.

I just offered 20k over asking on a foreclosure that was listed at 120k.  It will sell all day for 220k and needs very little work.

I got the deal and I know there were 5 other offers.

Ryan Copeland · Answer

@Bill P. do you feel like the property values are already inflated?

Why are investment properties Selling So FAST?

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