When Wall Street has actually started to invest in real estate then you know we have hit the bottom of the market. Ding, Ding, Ding, hear that familiar opening bell? The big boys are picking up real estate in bulk. Investment companies are buying buildings and residences in bulk with a plan to hold them as rental properties. Very good news for markets from florida commercial real estate to homeowners in Southern California!
The rules of the market have changed as well. Regulations that once prohibited investors from purchasing these foreclosed homes for the purpose of turning them into rental properties have been lifted. This leaves the market not only at the rock bottom, but wide open for investment.
What does this mean for the average person? If you have been holding on to your cash thinking that that house down the block is going to drop in price further; this may be a good time to get serious about investigating that purchase before it is snapped up in bulk by someone else. With mortgage rates still low you may be able to purchase and create your own rental investment.
Recently I was in Florida. I have heard that Florida and Las Vegas were the hardest hit by the real estate bust. While there I met a man that had quit his job. He made money now by simply purchasing one home at a time and turning them into rental properties. When the economy tanked he had no problem renting his houses to former homeowners that had been displaced. He had great tenants in these previous homeowners, and had almost thirty homes. When I met him and was on his way down to the Florida Keys to go fishing! I loved his story. I hope not only big business, but also regular people find ways to make real estate work for them.