I’ve noticed that when I search for sold to 3rd party only 2 properties come up in my area, while there are plenty of bank owned, preforeclosure and auction properties listed. Does this mean that banks set the opening bid high and decide not to sell to investors at auctions?? The area in question is downtown Los angeles 90015
Hi Gena,
When looking at that zip code over the last 120 days there have only been 2 properties purchased by a 3rd party investor at trustee sale. This could mean that the opening bids were too high or it could mean that there is not a lot of competition in that area at trustee sale. There could also be other contributing factors that are keeping investors away. If there is a large number of homes on the market an investor may stay away from that area because it could be hard to flip the property for a profit. If the rental market is soft them those looking to buy and hold would also shy away. It is very hard to paint with broad strokes and say that there is ONE reason why investors are not buying. This could also mean that there is a huge opportunity there for a new investor to jump in.