The real estate market has had some signs of recovery in the last few months, but plenty of concerns remain. The biggest issue currently looming over the future of the market is what will happen to all of the foreclosures. The market is saturated with foreclosed homes, many of which are considered undesirable for many reasons.
Not all of the foreclosures clogging up the market are undesired due to damage or poor neighborhoods. In fact, there are many million dollar foreclosures that couldn’t lure a buyer right now if they were half price. Many foreclosures in this price range or better neighborhoods are finding their potential buyers market to be non-existent. However, the lower to middle class family homes are finding some luck through private investors.
Private investors have begun to sniff around many harder hit areas for foreclosure looking for a great rental opportunity. Typically coming by the dozens, these groups buy up multiple properties in a single neighborhood and flip the house for a profit or make minor revisions and rent the houses out. Although flipping houses isn’t as lucrative as it once was, there is still plenty of money to be made if you know what you are doing. Gone are the days of individuals making a living out of flipping houses and in are the times for large groups of investors scooping up distressed properties to be renewed and reentered into the housing market.