Wholesaler · Grand Prairie, TX · Member since 2016 · 48 posts · 16 votes
9y
You need to find the cause. I am not sure how your county records are but you'll need to gain access (hopefully online) and research the foreclosures. There is a VERY good possibility that these foreclosures are what some refer to as "shadow inventory".
Essentially, during the housing bubble a number of banks could no longer foreclosure due to liquidity issues, so they just sat on properties and over time have foreclosed. So there is a VERY good possibility that these homes have technically been foreclosed for years but only recently has the process been accelerated through the courts.
Another possibility is something I found in about five seconds from a Google Search:
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
9y
Something happened to the economy. Major employer in the area laid off/closed? Weather event damaged lots of property and insurance didn't/wouldn't pay off? (Think earthquake, flood or tornado)
Yes, you can still invest in such a market, but know your exit strategy and buy at the right price. Understand your market for renters and buyers, not just geographically, but also in the correct economic strata for the property you're looking at.
Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
9y
It tells me you know if a diamond field and folks need to roll up their sleeves, start turning over rocks to find those diamonds, polish them up, and then sell them or rent them.
Wholesaler · Grand Prairie, TX · Member since 2016 · 48 posts · 16 votes
9y
You need to find the cause. I am not sure how your county records are but you'll need to gain access (hopefully online) and research the foreclosures. There is a VERY good possibility that these foreclosures are what some refer to as "shadow inventory".
Essentially, during the housing bubble a number of banks could no longer foreclosure due to liquidity issues, so they just sat on properties and over time have foreclosed. So there is a VERY good possibility that these homes have technically been foreclosed for years but only recently has the process been accelerated through the courts.
Another possibility is something I found in about five seconds from a Google Search:
Wholesaler · Taunton, MA · Member since 2016 · 12 posts · 1 vote
9y
Thank you to all for your responses... However I see a trend in that I should analyze the market which then presents the question of how to go about analyzing a particular market ??? What would you suggest as a analytical approach to a market ? Any tools you guys could provide me with would be greatly appreciated ?
Investor · Chicago, IL · Member since 2010 · 504 posts · 191 votes
9y
This is where you will need to hit the streets. Talk to local professionals or financiers as to what strategies are working and try that. Furthermore, maybe visit a grocery store and just ask people what is going on in that community. Lastly, talk to the local precinct and village offices (especially building and permits) to get an idea of how business is done there and how safe the area is. Hope that helps
As @Arpan Patel stated, local professionals are going to be the key. Online services can be helpful, depending on how good your county records are but when it comes down to it; realtors and brokers are going to have a pulse on the market. Sit down with a couple of them each week and get their perspective on the market. Come up with a line of questioning that you ask every one of them and you'll start to form a VERY clear picture of what is going on.
Any real estate professional that is worth their weight will be willing to take 15-30 minutes to talk with you on the market. Just tell them you're looking to buy half a dozen homes in the next year and they'll give you just about any bit of information you need in order to get your business.
Wholesaler · Taunton, MA · Member since 2016 · 12 posts · 1 vote
9y
Thank you to you both @Arpan Patel and @Richard Wormwood your help has been invaluable !!!! I will do as suggested and talk with some realtors and financiers as well local people which will hopefully paint a more precise picture of the markets.
Thank you to all for your responses... However I see a trend in that I should analyze the market which then presents the question of how to go about analyzing a particular market ??? What would you suggest as a analytical approach to a market ? Any tools you guys could provide me with would be greatly appreciated ?
Best regards,
Abdul.
The best way to analyze a market is to live in or near it, then you will have on the 1st hand knowledge of what is going on in the local economy ... otherwise, if you are asking these questions for a market far away from you with a blight of foreclosures, you are playing a VERY risky game as a newbie IMO. Hit a few singles and doubles in your home field before swinging for the fences on away games.