Investors spying single-family homes for quick-turn profits

It’s a good time to own a home in the Bay Area. With joblessness nearing zero and a thriving economy, the good just keeps getting better. But one thing that hasn’t changed much is real estate inventory and a market burdened with too many buyers and not enough sellers. 

But we have seen a new trend arising in the last month. The pool of buyers is getting bigger, with private investors and investment groups looking to find single family homes in the $1.5-$1.8 market that are in need of repair or aesthetics. These investors hope to flip these properties and make quick cash.

We received over five calls last month from eager investors searching for anything in that price range that spans from San Francisco to San Jose. Is it buildable, does the property need improvement, easy additions or remodels… these questions were sprinkled throughout the conversation. Quick buy, quick flip, quick cash.

Some were interested solely in off-market situations where the investor didn’t have to use up loose cash to compete for the property. Throughout these conversations we deduced that these investors were using this arrangement as more of a side job.

So, what does this do for local real estate? Well, it obviously makes things a bit more competitive on the buying end. People are realizing how much money can be made in local real estate and they are trying to take advantage of it. 

We think these investors are looking to top producing agents, knowing that the residential real estate game has much to do with good relationships. They are calling us because they know that we have a ready pulse on the market – we are in the know when it comes to off-market properties and on-market strategies. 

And while we hope to be of service to these investors, this trend helps our new and existing clients because it broadens our knowledge of the buyer pool – we can find good solid offers for our sellers and possess a keen awareness of who our clients are up against when making offers on their behalf. 

What this information shouldn’t do is overwhelm potential buyers. This market will always be competitive, which is why having a trusted and informed agent representing you is pivotal to success. This is a game of circumstance much of the time.