Big-money investors are entering the real estate space, though not in California yet – but it’s just a matter of time.
Notorious R.O.B. explores whether there would be much difference between selling to an investor, and selling with a realtor on the open market:
But he also brings up a curious thought – what if the investors re-sell the house, and carry the financing for the buyer? An excerpt:
Longtime readers know that I think the most interesting possibility is that companies like Opendoor, Offerpad, and others are looking at revolutionizing the home financing process by offering direct seller financing to buyers. That was premised on the idea that these guys would resell their loans as private label RMBS.
What if they figure out a way to just hold on to the loans and service them directly in some fashion?
If investors were selling re-conditioned homes and offering to self-finance the purchase, they could bring in a whole new set of homebuyers that can’t get a loan now. They wouldn’t finance just anybody, but they could pick up those who get left out of the current mortgage guidelines for silly reasons. If they had sensible guidelines, they could even become the go-to lender – you just have to buy their house, at their price, to get their financing!
Creating a new buyer pool could keep the party going for a few more years!
Read Rob’s article here: