Real estate investors are starting to re-emerge, and they’re eyeing bargains in foreclosures and coming with cash.
In the Chicago area, Jen Ortman, manager of the new Prudential American Heritage office, says that investors mostly are purchasing single-family home listings for $100,000 or less.
Other buyers are usually unable to take advantage of these bargain deals because they can’t afford taxes on the properties, which often are $7,000 to $9,000. Also, some of the homes have mold or other problems so buyers are unable to get financing to purchase the home, Ortman says.
Investors can buy what others cannot because they have cash and don't need a bank to finance them, Ortman said.
The cash investors are stepping in to buy these bargain foreclosures with the intention to fix them up and flip them for profit.
Source: “More Foreclosure Bargains Are Being Sold to Cash Investors,” Chicago Daily Herald (Feb. 13, 2011)