Amount of Cash Sales Continue to Increase Nationwide – Proof Cash Buyers Are Out & Actively Buying Wholesale Deals

Amount of Cash Sales Continue to Increase Nationwide – Proof Cash Buyers Are Out & Actively Buying Wholesale Deals

Many newbie real estate investors struggle in their effort to find cash buyers.  In fact, I have often heard many of them say that it is hard to find cash buyers.  I find this amazing, since the vast majority of property sales, today,  are cash sales.  Cash buyers are not hiding.  They are easy to find.  They are the ones buying properties, fixing them up and putting them back on the market.  If you look for them, you will find them. 

I travel nationwide looking for distressed properties that I can purchase, then sell to cash buyers.  No matter where I have been, I have seen real estate sales that have shown the amount of cash purchases, ranging between 30% -60% of  home sales that are taking place today.  It has been a steady increase in this direction, since the beginning of 2011.  Now that we are entering 2012, I believe that we will continue to see these numbers either maintain or climb to at least half of sales that occur in any real estate market.  The largest cash buyers in the market today are real estate investors.  DataQuick is a nationwide real estate news and data provider who recently put out a report on the amount of cash sales that were taking place in California. The Palm Beach Post, recently identified 54 percent of the homes sold were sold via cash in Palm Beach, Broward and Miami-Dade counties. Also, in the NY Times, it states, “Foreclosures represented 37 percent of sales in January. And all-cash transactions accounted for 32 percent of home sales — double the rate from two years ago when the trade group began tracking these deals. In places like Las Vegas and Miami, cash deals represented half of all sales.”

Cash buyers are helping the housing market recover by buying distressed proeprties, fixing them up and  putting them back on the retail real estate market.  Most lenders that have bank owned properties, will not make any repairs and will sell their distressed properties as is.  The problem is most of those distressed properties are in poor condition.  A retail buyer would not be able to get an FHA loan for those distressed properties.  FHA financing is the main financing option that most retail buyers qualify for  to get into their homes.  Without FHA financing, most people would not be able to qualify for a loan.  When a property does not qualify for FHA financing, you have a very small group of buyers who can pay cash for a property.  The pool of buyers is even more limited when you have distressed properties that need a lot of repairs.  Cash buyers have the resources, skills, and ability to refurbish and remodel properties that would continue to deteriorate without our efforts.

January 2, 2012 / 1 Comment / by / in , , ,

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