THE TIME FOR INVESTORS
Yesterday a story on NPR related the activities of two investors in Baltimore. These investors enthusiastically spoke of their purchasing as many properties as possible at discounted prices, distressed properties which the investors were renovating and then renting out. By doing so they are providing needed decent rental homes. Eventually when the real estate market turns around they plan to sell some of these homes. It isn’t lost on them that while home prices have declined, rents have gone up.
Much the same is true here in central Virginia. Foreclosures and Short Sales have made many homes very affordable. They are sometimes in distressed condition. There are investors who have made a profitable business buying up homes cheaply, renovating, and then selling those newly made nice homes at an affordable price that is still very competitive and profitable in the current market. Some of those newly renovated homes are being held by the investor to be rented out and will later be sold when the market turns around.
In these sad economic times opportunity presents itself. Why not seize it?