what will stop an investment group from Europe or Middle East to work a deal out with multiple banks to buy foreclosures in bulk at 70-80 cents on the dollar.
If they are going to buy them and then put them on the market, what difference does it make to you? A must-sell house is a must-sell house, whether it’s owned by Countrywide or by a Middle Eastern investment group.
If they are going to rent those out, it means that rental cash-flow numbers must work out. Not just work out, but they must be able to hire local property managers and make decent profit after they account for vacancies, expenses, etc. Ask yourself, what kind of return would you require to convince you to invest money into rental properties in Australia or Ireland?
But if those numbers look so good to foreign investors, they must look even better to domestic investors. So, the real estate market will be hot. Banks won’t be very enthusiastic about bulk sales of their REOs for 80 cents on the dollar if they can get 94 cents just by hiring a realtor.
