When investors move into the housing market it has been a sure sign that the market is nearing an upswing. And right now the cash investor is king. The NAR reports that all-cash transactions made up a record 33 percent of sales in February. That is a 5% increase year-over-year.
This market is especially attractive to investors because:
1) The for sale inventory is high and loaded with distressed properties at bargain prices;
2) The rentals are becoming scarce and rental income is delivering a solid return on the dollar and;
3) Believing the market is about to upswing it now offers the benefits of equity appreciation over time.
February's HousingPulse Distressed Property Index (DPI) declined for the first time since last fall.
It is important to remind your investor clients about the benefits of leverage to their buying power when rates are at historical lows. With a 25% down payment, in this distressed market, most properties will cash flow. Many lenders have restrictions on the number of financed properties. At Compass Lending Solutions, we have financing partners that will allow up to 10 financed properties for investors.
NMLS #204400
Comments(4)