Let Investors Back in the Real Estate Game

By
Real Estate Agent with RE/MAX First, Independently Owned and Operated Louisiana 99562851

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!!

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Rainmaker
69,140
Valerie Springer
Benchmark Mortgage nmls 2143 - Birmingham, AL
Home Loan Officer AL, FHA, VA, Conventional and Re

Yes ma'am, you are correct.  The properties that were purchased by many investors when the market was down, are still thriving.  The ones that purchased on the tail end are the ones being foreclosed upon.  I am with you, the investor has got to be able to "invest"!

Jan 17, 2009 12:40 PM #1
Rainer
59,868
Nate Rowe
Oakstone Properties, Homes in Richmond VA - Richmond, VA
Realtor, Homes in Richmond VA

With you all the way.  The govt. better make some "changes" real quick.  Speaking of "change", hasn't he changed all the promises he made in his campaign already.

Jan 17, 2009 12:48 PM #2
Rainmaker
325,921
Esko Kiuru
Bethesda, MD

Pat,

The long-term investors would be good for the real estate market. By the way, which mortgage lender in Arizona is doing loans up to 10 rentals?

Jan 17, 2009 02:00 PM #3
Rainmaker
67,649
Walter Grewe III
Long and Foster Realtors - Roanoke, VA
Realtor, SFR, A-REO, Roanoke Homes and Real Estate

The only problem I can see with this is that it would make sense and benefit people. That is the reason that we wont see the changes necessary to make it happen. The people who are really responsible for this crisis have all walked away from it and for the most part have not shared in the suffering that the homeowners they took advantage of have, not to mention the American people on a whole.

Jan 19, 2009 02:37 AM #4
Rainer
132,369
Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Hi Pat - You are so correct.  This is not only a "buyer's" market for residential properties; it's a "buyer's" market for investors.  I have worked for investors in located investment properties with great positive cash flow potential.  Recently I searched for properties in a specific zip code for an investor and found over 50 listings under $40K; and that was only one zip code in my area.

Jan 20, 2009 12:11 AM #5
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Rainmaker
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Pat Wattam

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