I was just in Phoenix at the CyberStar Summit and while there visited a fellow agent in Phoneix. He took me around to see the two bank repos he had just purchased. They originally sold a few years back for over $200,000 and he picked up each one for under $50,000. One required about $19,000 worth of repair to put it back in good working order. Considering the number of bank repos in that market, and across the country, isn't it about time the rules changed back to the old way where an investor could get a 30 year fixed interest rate, for up to 10 properties?
When congress changed the rules last year, allowing an investor to only have 4 properties, including their personal home, it created a real void in the national real estate market. Because some loan products are no longer available to the regular home buyer, we have fewer buyers - and more, and more inventory. I realize that a lot of the problems being felt in Florida, Las Vegas, and Phoenix were due to investors bailing out, but I believe that getting the investors back in the market, with a 20% down payment, will help jump start the real estate industry country wide!!!
In fact, while visiting my friend's office, he received an email from a lender offering rates in the 5% range to investors of 4 or less properties. Futher more, they had loan products in the 6.5-7% range for those who owned up to 10 - but those loans were only available in 3 counties in AZ! Smart lender!!!
How many of our buyers, who struggle to get their 3% downpayment to buy a house, have an additional $19K to do repairs on it. But bring the investor back in the market, let them fix the house up and then put it back on the market - or keep it and have housing for all those folks having to rent at this time.
Although the Baton Rouge real estate market has a low percentage of bank repos, I think repealing this act will even help our market.
Bring back the investors and let's see what happens!!