52% of 2022 Homes Purchased in Dallas & Tarrant County Investor Owned

Real Estate News TV

What percentage of homes in 2022 in Dallas and Tarrant County were purchased by investors? This is going to be interactive as well. This topic was brought to you by Stacy Hendren, real estate transaction coordinator, or pretty much my boss here at Acquisto Real Estate. And what percentage of homes was purchased this year so far? Year to date with investor owned funds, your real estate agents in your active and you’ve seen your buyers compete and you’ve seen cash offers and you’ve seen all these different things. What percentage were bought by investor owned properties? Right. So as we talk through this and as you guys have a moment to chat this in, what I’m going to say is this is going to give us a challenge to our market. So what’s happening here is as these investors are purchasing the property, they could be small investors that are buying one, two or three properties and doing it as part of their real estate portfolio, like for retirement or something else. Or it could be institutional investors or foreign investors coming in and purchasing properties so that they don’t have to take the money back to their country and change currencies. And they think that there’s stability in the US with what’s going on worldwide and for those reasons there’s different types of that it could be. So what percent in your mind right now? The challenge that this also brings up is that how are they going to unload these properties later on or are they going to continue to buy them? The reason that I think this is happening now is because there is this inflection point that we’re at right now, that we’re in this unique situation where inflation is higher than interest rates. So the institutional investor, the large one, can borrow money at a rate that is less than the rate of inflation. It’s typically reversed. So in doing this, they’re effectively printing money as it’s going up. And I also have talked about the fact that it’s leveraged because you have this rate that you can borrow when you have a loan as opposed to the money you put down. So it’s really magnified this return. Now, the losses will also be magnified if it switches back and flips the other way. But I was shocked to find out that, ladies and gentlemen, according to Stacey Hendren. And the news source said it was reported from to her. 52%. Of all properties in Dallas and Tarrant County. Year to date have been purchased as investor owned. 52% over half investor owned. Now, I might have to look at this and back some of those numbers out, and I’m not positive on on this number, but I think we are possibly getting some bad data in here. And I would say that it is closer to a number that Mike Sheppard’s chatting in here and Logan is chatting in. And the reason that I think that the number is actually a little bit less is the bad data is probably accounted for with people who are using cash money to buy it from a business and then later finance it and become a cash buyer. So there are certain programs like Home Lite has one that we’ll be talking about in the near future. If anybody has a buyer that would like to purchase a home before they sell their current one and they’d like to be turned into a cash buyer. We have a program through Home Lite that you could simply, for a 1% fee, have your borrowers become cash buyers on the new one. I think that would get recorded as a institutional investor or a business buying the property because they are paying cash for it and it’s in the business name and then the property is transferred to yourself once you get this new loan. So I think that might be giving us some bad data accounting for roughly half of it. So I think that that it’s that number right there. I think it’s probably more 25 and 25 bringing it to like 52. But I’m not sure. So. That’s the number. But regardless, that’s a lot of investors that are owning property. And what it’s doing is these people could be taking the properties and renting them out for Airbnb for short te --- Send in a voice message: https://podcasters.spotify.com/pod/show/realestatenewstv/message