Thread: News Stories
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Old 2012-11-08, 11:14   Link #24508
Join Date: Feb 2006
Age: 35
Not "news" persay .. but just thought I'd chime in for all our friends living in the U.S. and freaking out about the economy. This is all anecdotal but speaking with my friends that monitor real estate in the U.S. and another private investor buying up property..

Looks like there are big moves up in values in Dallas and Orlando right now. Participating in recent short-sale auctions are seeing purchases above asking. I've also heard that certain PE shops are hitting up Fannie/Freddie and banks to buy buckets of properties wholesale. Current interest rates, stricter lending standards and rental rates are producing a "positive carry" on single family properties in urban/suburban centres.

Basically, rents are high enough and borrowing costs low enough: Rent - Borrow Cost - Management Fees - Property Taxes - Any Reno Costs = >15% IRRs

Outlook is positive
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