Let me clarify that the term "multi-family" consists of two or more units.   

True or False: More one family homes foreclose than a multi-family homes? 

Could be true. Micheal Sexton from  Trumpblog posted an article today that stated more one family homes foreclose than multi-unit homes.   An investor friend said to Micheal "Virtually all the foreclosed properties out there are single-family homes or condos," he said. "If you can find me more than a handful of foreclosed multi-unit properties, I'll eat my shirt. It's because people almost always make money in multi-units, so they don't go into foreclosure."

Interesting - No?

Well, I checked on PropertySharks.com and what I found was that there are some foreclosures of multi-units but they are 10:1 to single family homes and the ones that I did find were in less desirable areas which shows me that rent collected is less, therefore less rent roll means less revenue.

I can totally see it the way Micheal interprets it.  But another way could be that most investors have alot more to lose.  Look at it this way - to invest you need to have some cash at hand and if it is a commercial building than the minimum required down payment would be 30% - allowing finance of 70%.  But also, if an investor is buying property to only create cash flow - they have made the numbers make sense.

 
This post has been included in New York Information Queens County, NY Information

5 Comments on True or False? More One family homes foreclose than multi-units?

JUL
23
2007
20 Featured Posts
Good points here.. most investors have cash and some financial backing.. as theya re making a business decision the numbers must make sense.. On the other hand buying a single family home is an emotional purchase and therein lies the difference..
4:03pm • #1
409,527 Points 74 Featured Posts Outside Blog

Hi Christine,

Maybe because the people who purchase them are savy investors and know how much projected income there will be and usually have a way out. Normal owners lol! Normal I say...lose their shirt because they buy with no money down and are suckered into these interest fluctuating rates..maybe that is why.

4:10pm • #2
212,647 Points 56 Featured Posts Outside Blog
Hey Christine - that's really interesting and it makes a lot of sense.  For those that are not investors that own multi-family dwelings, they get income from the other unit(s) and therefore the less chance to foreclose - thanks for the food for thought.
8:11pm • #3
257,978 Points 7 Featured Posts Localism Sponsor Outside Blog
I would agree with Neal - Multis are far more likely to be the result of actual financial planning.  And when planning, there is planning for leaner times too.
9:26pm • #4
JUL
30
2007

there are more SFR because they are the 1st time home buyers who went into payment default

 

generally the multi fams are investments and the investors have the capital

6:20pm • #5

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Christine Forgione - Associate Broker

Whitestone, NY

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