Real Estate Investor Slowdown | Huntsville, AL Real Estate News
Posted by Matt Curtis on
Real Estate Investor Slowdown
Real estate has been weird for the last couple of years, especially for real estate investors. We've had COVID, we've had this 5.5 million home deficit in the housing market, and then we've had this rise of institutional buyers in the marketplace. As a real estate investor, I've always been taught that you make a lot of your money at the purchase stage so you want to buy a home priced right.
All that's been thrown out the window over the last couple of years with this rise of institutional home buyers. They're buying homes at list price, often $20,000 to $30,000 above list price, and buying hundreds and even thousands of homes at a time. So why did they do this? It all came down to yield spreads and cap rates.
…628 Views, 0 Comments