Will We Have 4 More Years of Wholesaling Foreclosures?

The 2012 election results are in. So what will another 4 years of Obama in office mean for the U.S. real estate market, the flow of foreclosures and opportunities for real estate investors?

Four more years of the same president suggests we ought to see 4 more years of the same trends…

Real Estate Trends for 2012 to 2016

On a national level, the U.S. has seen home sales volume improving, new construction coming back, home prices trending up, publicly listed inventory down and marketing times for homes coming down. This is all good news and statistical trends everyone would like to see continue. On the bright side, these trends are somewhat independent of politics. They may be influenced by them but we are at a point where the natural curve in the grander housing cycle has more pull.

Some real estate investors who have been focused on wholesaling foreclosures wonder, if things keep on getting better, will it mean an end to foreclosures and the availability of distressed properties for flipping?

Well, we’ve also seen foreclosures increasing in many areas of the country. This is likely to increase in many other areas too, plus we still have years’ worth of shadow inventory waiting on the sidelines to be dripped on the market. This means several years of wholesaling foreclosures at good volumes, at least.

Plus, there’s a good chance we’ll probably continue to see things get worse in many sectors before they get better. This applies to everything from the stock market to the economy as a whole, the job market, availability of mortgages and other forms of credit and foreclosures.

The Outlook for Real Estate Investing from 2013 on…

Despite continued foreclosures and struggles, getting the economy moving real estate will still remain in high demand as it currently remains the most, if not the only, attractive investment vehicle and for most, will be the only way to get ahead and secure their financial future.

The bottom line is the market will keep improving and there will be foreclosures working their way through the system for years, and even when they begin to dry up, eventually there will be plenty of other opportunities for making money in real estate and in flipping houses, if not specifically wholesaling foreclosures.

For those who are finding themselves in extremely hot markets and facing increasing competition, though don’t want to switch up their strategy from wholesaling foreclosures, it may be wise to consider other means of locating and locking down these distressed properties, perhaps earlier in the process.

Of course, diversifying investment locations is also a smart move; not just for honing in on bigger discounts, but also for consistency in volume and income. Just because you aren’t holding properties doesn’t mean you can’t lose out when a disaster strikes. If all of the deals in your pipeline are in one location and the industry stalls, you’ll be in bad shape just the same as those who have suffered property damage to their rentals.

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