Adapting to Change in the Real Estate Market
Posted: November 02, 2009
Amid the wake of foreclosures, rising unemployment, and low home prices, there are a select group of individuals profiting from Southwest Florida's real estate bust - investors. Granted, not all investors were able to escape the pull of the market, but the ones that were able to predict it and adapt accordingly are finding a silver lining amid the chaos.
Most investors with sizable amounts of capital are choosing to snap up distressed or bank-owned properties at unbelievably low prices - then updating them and trying to resell them at higher prices, or renting them out until the market rises again. Other investors are taking a different route - one in particular is buying up defaulted mortgages, and giving the homeowners an opportunity to modify their mortgage payment. The ability for the investor to procure these notes at such low prices allows him to keep the current mortgage at a lower rate, and make a profit on refinancing the home once the real estate market gets back up to speed.
While not ever investor is taking this route, there seems to be a multitude of businesses and entrepreneurs that have changed gears to accomodate the new marketplace. Law firms that originally had a large focus on real estate transactions are now switching to real estate litigation, and assisting with the onslaught of foreclosure sales. Finance and consulting companies are lending cash advances to struggling homeowner and condo associations where owners are unable to keep up with association dues. There are even companies that are designed to assist homeowners in foreclosure on how to handle (and avoid) the pitfalls of tax time.
With foreclosures showing no signs of slowing down, and unemployment not expected to decrease any time soon, many savvy-minded business people will have to rethink their daily operations to stay afloat.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions.
Information for this article courtesy of The Miami Herald and Florida Realtors.
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