Investors Keep Buying Real Estate - Are You?
Why does this happen? In the stock market - most people buy high and sell low and they lose money. Common sense would tell you to buy high and sell low = make money. Well, shouldn’t that same principal apply in buying real estate investments? For the smart Philadelphia and nationwide property investor, it has. According to an April 6, 2009 article on Direct Investor News, “Homes that were purchased for investment were counted among strongest segments of real estate in the year 2008″.
We’ve seen the number of Philadelphia real estate investments we’ve wholesaled increase last year. People see a good buy and take action. They don’t allow others to swipe a property from under their nose. As I once heard from a Philadelphia based real estate guru, “your money is made when you buy”.
But here’s a statement from the article that we’ve seen the opposite occur. “Investors stayed relatively close to home when looking around for investments. A good rule to follow is to invest in markets that you know best. Often times this is the market that you live in.”
The real estate investments we’ve wholesaled in 2008 primarily were gobbled up by “out-of-state” investors. Mostly from North Jersey, New York City and a few from Washington state and California.
Are these “long distance” Philadelphia real estate investors seeing something that the local investors are not? Why would local investors sit on their hands and allow long distance investors buy properties that are sometimes
Also from the article, “far larger numbers of investors bought their units in distress situations - one out of six was a foreclosure or trustees sale.” We also concur. With the rise of foreclosures in 2008, there were bargains to be had. Ourselves and our investors had taken advantage of purchasing some nice cash flow properties that were foreclosures.
Comments