Investors are fueling the hot real estate market and are a huge part of the housing recovery.
The trend in many cities is for the investor dollar to buy real estate and turn it into rental property as the real estate market rebounds and goes from dismal to hot. Some cities have more than 20% of the homes being closed by real estate investors as the new landlords are jumping on the housing recovery bandwagon and the more they jump the better the recovery becomes. Rental returns are very strong and with the real estate market heating up it makes sense for money to flow into real estate and move from other investments like gold and other main stream opportunities.
The investors are not just Joe Blow and Mary Bikini but the institutional investors like the Blackstone Group are buying up plenty of properties. With institutional investors on board expect the markets to remain on a roll as they look to the markets that got hit hard with foreclosures. Phoenix, parts of Florida and California, the Las Vegas area and the Carolinas are all hot areas for investor real estate. Like the Blackstone Group, Colony American Homes is also bullish in the real estate investment market and have spent close to 2 billion dollars in 7 States to acquire what they consider as undervalued rental properties.
The real estate market is hot once again and the smart investors are putting their money back into investor rental real estate.