There are multiple sides of real estate investment that may surprise those who don’t understand the many benefits investors provide to communities. Buying homes for cash through easy, trouble-free transactions helps people on a variety of different levels, even some who are totally uninvolved with the sale. In reality, investors buying houses provide a great service directly to involved neighborhoods and indirectly to other property owners. They can save homes and neighborhoods from undesirable fates.
Investors Help Homeowners
It’s no secret that real estate investors will buy homes for cash; however, all the ways in which such sales benefits home sellers often go unnoticed. Sellers who either cannot wait for conventional sales to occur without losing their homes – and their equity – come to real estate investors in order to rescue their investment in the property rather than losing it completely. Selling for cash is a great option for people who have inherited property they either cannot or don’t want to keep.
Selling houses as is to investors is a proven way for homeowners facing a potential catastrophe to receive some of the equity in their home and avoid facing foreclosure, bankruptcy, and the loss of any equity they have built up in their home.
Investors Help Neighborhoods
When investors buy homes from owners facing foreclosure, the purchase can be beneficial in ways other than just to the seller. There are two ways real estate investors typically handle properties after purchase: (1) They make improvements to the property to sell on the local real estate market at a later date or (2) they make improvements in order to rent the property. In either case, it’s in a real estate investor’s best interest to make property improvements in order to sell or rent the homes.
While it appears on the surface that the benefits of this arrangement are only to the real estate investor, there’s actually a two-fold approach to buying homes and renovating them to resell or rent. Property Improvements can, in fact, improve neighborhoods. This is especially true in lower-income areas where homes can sometimes face neglect simply because homeowners were unable to afford the cost of needed repairs. It also helps to keep the neighborhoods in question looking their best, which in turn helps either to raise property values in depressed areas or maintain them in others.
On an individual scale, this may not seem like much; from a much larger perspective, real estate investors play an important part in improving and maintaining neighborhoods, especially in areas that might otherwise continue to lose value. The effort put into otherwise unwanted property helps to eliminate the decline of poorer communities. It helps to make such areas desirable once again so that residents don’t have to move and lose their equity; ideally, more people buy homes and move in, which makes values at least stay the same or even increase. Homeowners who don’t want to sell a house can benefit greatly when investors buy homes on their street, repair the property to make it liveable again, and ultimately sell or rent it once more.
Despite the fact that there are many misconceptions about real estate investors and their roles in communities, the truth is that in many places investors buying homes don’t simply make minimal repairs and flip properties; they actually put time and money into properties that otherwise wouldn’t be upgraded. In truth, investors improve neighborhoods with care, one home at a time. Buying homes for investment can wind up being a very positive solution for sellers, buyers, and entire neighborhoods!