Do Real Estate Investors Help The Real Estate Market?


Just like anything that can make money you will have scam artist that make the entire real estate market harder to navigate for buyers, sellers, and investors alike. But since the housing slump these conmen have given the entire industry a bad name. Just like any other type of business companies that buy houses are trying to make a profit, but the honest ones can be great for a community as a whole.

As with any venture that can make a profit,Do Real Estate Investors Help The Real Estate Market? Articles there are scam artists out there that jeopardize the real estate market for home buyers, home sellers, and investors alike. Unfortunately, lately such conmen seem to have given the entire real estate investment industry a bad name. Just as with any business, companies that buys houses need to stay in the green to keep running; however, honest investors can also do plenty of good in the community, both in terms of the area at large and for home owners. Read on to see the reasons how investors are helping neighborhoods across the country.

Investors renovate abandoned homes.

In some areas that haven’t been hard hit by the housing market’s downturn a foreclosure, or short sale, can have little to no impact on housing prices. Sadly this is not the case in many neighborhoods that have been hit hard, and the number of foreclosures and short sales can cause the other home values to go down. Foreclosed homes can turn into abandoned homes and if they stay like this it can cause even more issues with home values and this is even worse in areas that don’t have regulations or laws about a lender taking care of the property. At this point the foreclosed home becomes an eyesore and can even turn into a hangout for homeless people and a hotbed for crime.

Many investors seek out these homes for renovation. Unlike lenders who are in the business of loans, rather than the real estate market, investors are in the market to buy and sell homes. Thus, when they purchase a foreclosure or a short sale, it is in their best interests to pay for upkeep costs to be able to sell the home at its highest value. Moreover, when investors renovate abandoned homes, these homes are back to being a functional, attractive home for a family, rather than an eyesore on the street. In this way, the regular renovation that real estate investors accomplish increases the value of property in the community.

Investors give more options to burdened homeowners.

There are some people that just look at investors as people that are trying to make a quick buck off of home owners that are down on their luck. This is not true of any good investor. For home owners that have a house that is in good condition and they can afford to wait months to sell their house an investor is probably not the way to go. But for the owners that don’t have the luxury of time or money these people can be their best friends. If you have a home that is heavily damaged and you are not able to have repairs done an investor can sometimes be the only way to sell your home. Investors also purchase homes for people facing foreclosure so they are able to avoid foreclosure and the emotional stress that goes along with it.

Investors bring business to the community.

When a real estate investor fixes a home they are going to be giving a lot of work to local trades in the area. Many of these homes require extensive repairs which is great news for plumbers, electricians, lawn care, painters, and many other contractors plus others connected to real estate like lawyers, inspectors, appraisers, and lenders. This is why one house can provide work and money to many businesses and most of the time they are going to be local businesses which will bring much needed money into the area. In this way an investor can help to revitalize an entire neighborhood and can make it a good place for other small businesses like restaurants, bars, grocery stores to come and open up a branch.

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Author: Piyawut Sutthiruk

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