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Housing Inventory Is Exploding In This One Market Segment

by blogger1
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on Thursday, 08 February 2024
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Still searching for more house deals to wholesale?


Opportunity and housing inventory seems to be growing fast among this one segment of the market. It’s only likely to grow even more this year.


If you are looking to do more deals, and to find motivated sellers willing to accept low offers, check this out…


Landlords Are Going Broke

More and more landlords, big and small, appear to be going broke. All the way from mom and pop landlords with one to a handful of properties, up to big banks with lots of pending REOs and their own underperforming real estate assets. As well as builders who are looking to exit before the market really changes on them.


Why Are They Going Broke?

There are many reasons that landlords are falling into financial distress right now. Ranging from poor acquisitions of properties with big and expensive issues, to the last couple years of the economy.


On the property level this can include deferred maintenance, tenant performance, inflation in holding and operating costs, poor property management and contractors, new regulations and malicious lawsuit trends, and more.


On a personal level this can include diminished retirement account balances and financial power, unemployment, inflation in personal living costs, and credit lines getting cut off.


Finding The House Deals

Some of these properties are being listed through agents. Though many owners are still on the fence, or haven’t listed yet. Especially as they don’t want the expense of Realtor commission.


So, how do you find them? Indicators to look for include; delinquent taxes, google searches related to financial distress, leads from property management companies, mortgage lates, mechanics liens, out of area owners, evictions records, building permits being pulled, code violations, local housing authority contacts and who has failed their inspections.


Make Lots Of Offers

Time to close and stopping the financial bleed are probably most important when it comes to selecting purchase offers. They might not get their whole investment out, but that’s better than losing more, or lawsuits from failing to keep up their properties.

 

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