For the last few years, real estate investors have been getting a very bad rap from many people. Because of the nature of our business, some investors have been bad for the industry. This is especially true for real estate because for the average consumer, buying or selling a house is the single biggest purchase of your life. There have been many occasions when an investor has taken advantage of an old woman. Or a situation where someone signs away the rights to their home only to have the investor not pay them. These stories often make the news and they shine a light on a very dark and small percentage of real estate investors.
I offer you a look at the other side of the spectrum. Property investors can be a necessary part of revitalizing the real estate industry for America. Good investors often focus on properties that for one reason or another are not easily consumed by the market. If a property needs more work than the average buyer is willing to do, then a property investor may be the answer. When a seller needs to sell fast and cannot wait for the average buyer to get financing, then an investor may be the answer. When a seller has a problem with title or cannot sell the property without fixing some legal issue, then a real estate investor may be the answer.
The point is that a real estate investor can often help you sell when other can't. This sell will help move a property that in turn helps the economy. If investors were not there to fuel this part of the housing market than many houses would just remain on the market or even worse they would eventually be foreclosed on and the market would have to deal with the bank selling the house at a huge discount. This would in turn hurt the other home values in the area.
Therefore, while many people look at real estate investors as a problem with the property market, I see them as a benefit. They provide a very useful service.
While I do not advocate investors hurting home owners or home sellers I do believe that a properly trained investor can be a great ally to many people that need help with their real estate needs. The secret is figuring out which investors are good people and which are bad. Next week I will give you a few tips.