- This topic has 6 replies, 3 voices, and was last updated 2 years, 6 months ago by gzz.
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April 24, 2022 at 4:20 PM #23182April 25, 2022 at 7:33 AM #825188sdrealtorParticipant
I’m thinking a lot of those bulk buyers are i buyers and flippers.?
Also thinking the all cash investor buyer is a smaller factor here than lower priced metro areas
Also that’s 32% that are out of the potential foreclosure pool
All interesting data points but I’m not so sure exactly what it means particularly around here
April 25, 2022 at 4:25 PM #825204XBoxBoyParticipantI’m not sure why this would be bullish. If in fact a lot of houses are being bought by hedge funds, they are also likely to be the ones heading for the exits if the market changes. If anything hedge funds buying houses makes me more fearful of a housing decline.
April 25, 2022 at 5:40 PM #825205gzzParticipantThere have long been obstacles to investing to US SFH rentals.
They are an amazing asset class, but hard to bulk buy in 20-50 million chunks like stocks and bonds, buy in specific amounts, buy for foreigners, etc.
Hedge funds and SFH rental REITs are working to fix this issue.
Think of all the German insurance companies and pension funds buying bunds that pay only 0.8% now. Their excess savings are better invested here. Instead of losing about 10% the past year as yields rose from negative to .8, they could have gained 30% appreciation plus another 10% on the dollar rising.
April 25, 2022 at 5:46 PM #825206gzzParticipantSDR, are many flippers buying 10+ homes a year for cash? Probably a few, especially in cheap markets, but the ones I know use loans and don’t do that many.
I feel that flippers are becoming more prominent now partly because so few people are selling that flips are a bigger share of inventory, and also linger a tad longer by pricing at the high end. Maybe also because I am looking in greater Clairemont which has so many nice homes that need updating.
April 26, 2022 at 10:06 AM #825208sdrealtorParticipant[quote=gzz]SDR, are many flippers buying 10+ homes a year for cash? Probably a few, especially in cheap markets, but the ones I know use loans and don’t do that many.
I feel that flippers are becoming more prominent now partly because so few people are selling that flips are a bigger share of inventory, and also linger a tad longer by pricing at the high end. Maybe also because I am looking in greater Clairemont which has so many nice homes that need updating.[/quote]
There are a bunch of large flipper groups doing hundreds a year in SoCal. Typically backed by funds collected from investors. There are Mid size groups using cash they started with and have grown over the years. There are small time flippers who use cash or hard money.
10+ is a low threshold for flippers of any size beyond mom and pop
Then there are the ibuyers. Redfin, Open door etc are still active. Zillow was but they grossly mismanaged things. They bought hundreds of homes here
April 26, 2022 at 4:16 PM #825215gzzParticipantMoved.
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