Will Smaller Investors Save the Real Estate Market?

A very common question I see in the news feeds is how investors are taking advantage of the Elgin housing market.  But first, a clarification: the Investor I refer to is one who does this professionally, for a living either full time or part time, buying, selling and flipping/rehabbing.  They never live in the homes they are investing in.  So, this type of investor has potential to gobble up tons of incredible deals at huge discounts with super low rates on mortgages, right?  Well, sometimes.  One of the biggest problems investors have is finding deals that create cash flow and equity.  The market has fallen in a lot of places so much that equity is vanquished into the next decade at least.  This leaves cash flow issues which in turn makes it difficult (not impossible) to find money.  Private money lenders know this and have always been able to make high interest loans available for deals.  But what about the investor who only buys part time or only a few properties?  Smaller investors are needed now more than ever so don't back out.  PM loans may not meet their needs in this market unless they have a ready buyer lined up or a way to quickly refinance.  Use your resources wisely!  Talk to a variety of lenders.  Better yet, talk to fellow investors!  A friend of mine, Jason Simpson, is known on Facebook as the Street Cop Millionaire but he offers a free e-book on investing that works nationwide at www.StreetCopMillionaire.com.  I recommend looking at properties that require less work to fix up and in a specific niche or area like college housing that you know will always be in demand.  Skip the short sales that waste time unless you know the agent is experienced and go find the sellers who need to relocate or have been on the market for a long period.  You can get this info from any real estate agent, it's called Days On Market or Market Time.  And remember, let's aim for a win-win deal so an investor can get a great deal while helping a seller who has to sell.