Are Buying deals from the Courthouse Steps at a Trustees Sale over?
The days of getting smoking hot deals at the courthouse steps are not over, but are very limited. As mentioned in earlier posts, the large capital firms and hedge funds are spending hundreds of millions of dollars on Atlanta real estate, which has forced competition and pushed prices up. As little as one year ago, your competition buying at trustee sales was the local investors and maybe an out of state small investment company or two. Today, you are competing with money from all over the world. The kicker is that the ROI the larger firms require are much lower than the smaller investor can compete with. In short, these large capital companies can pay more for a property to meet their investment criteria.
There is good news for the small guys and gals however. Because these larger firms are buying in volume, they have to use filtering models that are sophisticated to process data quickly. These filtering models will never be as good as experienced real estate professionals who have a finger on the pulse of particular areas or neighborhoods or even individual properties. We will always get the deals if we work hard enough and know our areas well. It is always wise to partner with professionals on the ground that know their markets and that you can trust. Just to emphasize, as a local investor, I knew 2 years ago that the capital firms would drive prices high. I tried my very best to tell every small investor I could what was coming and to buy as many properties as they could while the prices were still dirt cheap. Some listened. Others could not wrap their arms around what was coming.
There are 2 points to take away from this:
1. There are always real estate investment opportunities in any market, especially when you can foresee the changing market far enough in advance to capitalize on them.
2. Smart investors select experienced and determined local real estate professionals and investors to assist them while buying, selling, or owning real estate.