About a year ago, our CEO, Alex Charfen was invited to appear on a cable news show. He was asked for an explanation as to why home sales were going up, but mortgage applications were going down. His response was… investors. This answer was quickly dismissed by the host of the show, but it’s turning out Alex is right. Real estate investor activity is absolutely surging!
As we’ve stated before, real estate investor activity rose from 17% to 27% from 2010 to 2011. And consider this: The Detroit News recently published a story of a foreclosure auction in which there were 403 residential units, 235 vacant land units, and 7 commercial units up for sale. One person paid $4.8 million for ALL the properties.
The secret is out. Real estate investing is on the rise, and high net-worth investors are pouring into the market.