Sam Zell, real estate billionaire, and Warren Buffet, billionaire who also does real estate, are both convinced that the market is going to rebound nation wide by mid 2011. They also say that within a year or so the residential housing problem should largely be behind us (read the full article here). Is it good news or bad news?
I think it is very good news because the nation wide improvement will be preceded by local markets that will recover faster which means good opportunities for medium term investments, like 12 months, which are very common in today real estate market and very acceptable also to international real estate investors.
The package I am proposing to my investors right now, for example, is a 12 months package where we buy a property at a discount, we rehab very fast and put it back on the market with a lease option agreement for buyers who have less than perfect credit.
This strategy allows to get buyers pretty fast and lower holding costs, since the property starts to produce cash flow while the prospective buyers straightens out his credit and gets a loan. The whole process never takes more than 12 months which is very acceptable for an European investor who is accustomed to one or two years wait time for his investments in Europe.
So I predict a sharp rise of interest from foreign investors in the US real estate market.
Roberto Mazzoni
P.S. If you are a Realtor or an investor who wants to deal in international real estate, leave a comment on my blog of follow me on Twitter or Facebook.
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