Thread: Flood of foreclosures to hit the housing market

They've been saying that for awhile now but inventory levels in my area have been dropping all year.

I am curious about this as well. I feel like I have been hearing this for a awhile but most of the investors I have been following have all talked about lower inventory levels and I am seeing the same in my market.

Anybody else have any insight into this or reports on inventory levels in their areas.

I'm shopping in Pheonix, AZ and I don't have much hope of seeing any more decent inventory. Everything started drying up around Oct/Nov 2011.

Originally Posted by Rickson9

I'm shopping in Pheonix, AZ

Rickson- what are you looking for? I have a few pocket listings down here that have NO competition....

Damn dunno how I missed this post/thread. I'm looking for anything that can be rented out that makes financial sense. Low crime is a must.

Right now I'm seeing a lot of HUD homes in the inventory.

I'm also seeing a few more flips. Investors who purchased property for $35k, gutted, remodeled and relisted at $60k like this:

Market Sale & Sale History
Recording Date: 08/30/2011 Document #: 20110723974
Sale Date: 08/18/2011 Document Type: Special Warranty Deed
Sale Price: $35,000 Owner Name: Av Projects Llc
Price Per Sq Ft: $37.59 Seller: Bank Of New York M 2007-Oh2
Recording Date 08/30/2011 07/11/2011 10/31/2007 05/14/2007
Sale Date 08/18/2011 06/30/2011 10/30/2007 05/02/2007
Sale Price $35,000 $36,000 $181,500
Document Type Special Warranty Deed Trustee's Deed Special Warranty Deed Special Warranty Deed
Buyer Name Av Projects Llc Bank Of New York Mellon 2007-Oh2 North Parc Eight Llc Freegard Joshua L
Buyer Name 2 !h2
Seller Name Bank Of New York M 2007-Oh2 Recontrust Co Freegard Joshua L North Park Village Llc

Also, flood of foreclosures still fails to materialize. That sucks.

I'm almost 90% convinced that this bust is done for me. I'm back to waiting on the sidelines for the next financial disaster. My generation has been extremely good for this. I graduated in the mid 90s, right into a real estate meltdown in Toronto (bought property), then 2002 hit with the tech wreck (bought stock), and then 2008 was another stock market disaster (bought more stock) and 2010 the U.S. real estate scene was screaming for mercy (bought more property).

The lions share of foreclosures have went to bulk buyers; as to be expected, the little guy gets the scraps. Florida's inventory has for sometime and is still being cleared in 1000 home (insert large number) chunks from what I understand.

Originally Posted by InMotion

The lions share of foreclosures have went to bulk buyers; as to be expected, the little guy gets the scraps. Florida's inventory has for sometime and is still being cleared in 1000 home (insert large number) chunks from what I understand.

Source?

Where did you read this?

Who told you about it and is buying bulk?

I didn't have to read it, or give you a source, I talk to people first hand in the industry; they have been doing this for a few years in Florida. I'm not saying all the opportunities are gone for small investors but its not like it was, inventory is being cleared.

Personally I've read that it was difficult to buy in bulk which gives us little guys more of an advantage. But I have no source. I think it was Warren Buffett who mentioned this, but again, I cannot confirm.

Originally Posted by InMotion

I talk to people first hand in the industry; they have been doing this for a few years in Florida

Pretty cool.

Are you investing with them?

If I were in a position to talk to people like this, I would be all over the place trying to get them to let me work with them. There's gotta be a way to be part of the club.

What are they buying? Apartments? SFHs? Condos?

What type of discounts are they getting, compared to FMV?