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Where is the inventory?

     So the year is winding down and we're heading into the final stretch in the real estate world.  It's been a busy one for sure:  The MERS debacle, Robo-signing issue, AG Settlements, and a few other issues have had a real effect on the real estate market.   Many forecasters, including myself have been projecting prices to continue to go down.  All the signs pointed to a continued downward trend in housing prices, and many people, including myself, were caught off guard when we started seeing reports of year over year price increases back in July.   It seems many of us have forgotten one of the most basic rules…  Supply and demand.

     What many of us did not see coming was entrance of the Hedge Funds into the property management business.   I say this with a hint of sarcasm.  I don't think by any means that Johnny Hedge Fund Manager is fixing toilets and harassing people for late rental payments; but make no mistake, Johnny Hedge fund is fast becoming one of the larger landlords in the country. 

     The number one issue that all of my investors and agents talk about is the lack of inventory.  One would think the big issue would be the mountains of paperwork involved with short sales, or asset managers hacking down broker commissions, but those are side notes in a larger struggle.  The biggest issue by far is the lack of inventory.   Car dealerships sell cars, real estate agents sell property.  If you don't have inventory to sell all other problems tend to be side issues.

     Today marked a first, a private equity firm in San Diego completed a bulk REO transaction with Fannie Mae.    This is not the first of this type of transaction, but it's the first time that it was made public.  It had to be disclosed due to the fact that it's tax payer money in play via a government institution.   I don't know that there is any way to find the total number, but I suspect that there have been plenty of private transactions between the larger banks and private equity for some time.  I believe this is the X-factor and a partial answer to the national inventory squeeze. 

     So the question becomes, how do agents and investors find more inventory?  The answer is simple, marketing.  Citracado Market Advisors have proven programs to help you find deals.  I would urge you to give us a call and take a look at some of the lead list pages.   We want our paying to customers to have the advantage, so we won't disclose all our secrets here on the website, but if you would like to learn more please give us a call.