Since about the end of 2011, and well into the first quarter of 2012, trustee sales are being overrun with greedy bidders representing hedge funds and foreign buyers. Iâ€™ve heard countless stories about Canadians bidding up properties in the Phoenix market and hedge fund representatives paying 95% of retail for properties at auctions all over the nation. Real estate investors who focus on flips are being outbid all across the board, as groups of eager foreign investors bid up properties to the point where there is no profit to be made. Those who are putting offers in on foreclosures and short sales are also seeing upwards of 30 offers on one property, as well as stiff competition against buyers with all cash to play with.
Â All of this activity has made the good real estate deals extremely scarce in some markets. Some real estate investors have chosen to abandon the bidding wars altogether and have gone back to their tried and true methods for finding good real estate deals.
Â What are you experiencing in your area of the real estate
market? Please share the location you are in and what is happening. What are
you doing in response?
Posted by Corey Curwick of Private Money UtahÂ on September 21, 2012