Investor or parasite?
Posted by Mark Washburn on Friday, August 26, 2005 at 2:24 PM
By Mark Washburn / August 26, 2005
Comment
Industry taking steps to curb quick flips
Are real estate investors really bad guys?
One school of thought says that investors are pushing up prices too quickly without adding any value in the process. Flippers are to the real estate market what day traders were to the dot.com boom.
The differing opinion is that investors are providing capital and resources to a highly inefficient market. This reasoning continues that investors are early adopters that validate developments before the general public is willing to buy.
The answer probably lies somewhere in the middle. The deed restrictions that developers are utilizing are designed to limit profits for investors and protect developer interests. I do know that developers will welcome back investors when fewer end-user buyers flock to their projects the way they do today like hyenas to a fresh kill.
Enter the Flipbusters [Time]
Are real estate investors really bad guys?One school of thought says that investors are pushing up prices too quickly without adding any value in the process. Flippers are to the real estate market what day traders were to the dot.com boom.
The differing opinion is that investors are providing capital and resources to a highly inefficient market. This reasoning continues that investors are early adopters that validate developments before the general public is willing to buy.
The answer probably lies somewhere in the middle. The deed restrictions that developers are utilizing are designed to limit profits for investors and protect developer interests. I do know that developers will welcome back investors when fewer end-user buyers flock to their projects the way they do today like hyenas to a fresh kill.
Enter the Flipbusters [Time]
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