How Will Surging Commercial Demand Affect Wholesaling Properties?
How will the new uptick in demand for commercial real estate affect wholesaling properties in America?
Analysts from the CCIM Institute point out that the U.S. commercial real estate market has been improving since last year. During this time commercial mortgage lending has eased and demand has risen sharply.
In fact, following in the footsteps of the nation’s top residential markets, or even better global investors are finding cap rates dwindling and inventory slim pickings. This has savvy investors shunning expensive and tight markets like San Francisco, New York and Boston for secondary markets where the spreads are better and better properties can be found for a lot less.
As the real estate world has become more global and the map changes the lines between primary and secondary markets has blurred. A new analytics report concludes secondary markets in 2013 include the likes of San Diego, Denver, Seattle, Charlotte, Atlanta and Phoenix.
This really changes the game for investors and cities like Phoenix. Phoenix, AZ may have already been popular with international investors looking for single family rentals, but this changes the fundamentals and dynamics of the rebound.
Phoenix home prices are already rising fast. Some have complained 20% plus year over year jumps and investors wholesaling properties for double what they are finding them for is causing the market to heal too fast. Still in reality there is a lot of value with over 30% still to be regained to reach previous highs. Still many left Arizona last year to hunt deals in other areas.
Now a new wave of foreclosures combined with less competition and a big boost in business means massive opportunities for wholesaling properties in Phoenix. Commercial real estate growth means an economy that is flusher with cash, more jobs and rising wages. That’s exactly the ingredients needed to take growth to a whole new level and keep real estate affordable, even as equity surges.
As it does we’ll see those timelines and cash flow cycles reduced significantly as appreciation increases in momentum to where those tapped into sources of inventory can wholesale properties for huge profits in hours providing they have the right systems and partners in place.
Thanks to this week’s win for mortgage borrowers, as regulators stomped out elements of the Dodd Frank that threatened to halt lending easier access to home loan credit ahead should fuel even more growth and see demand among retail buyers rocket.
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