Did you know that there are several large institutional investors and many corporate investors from both coasts buying homes in central Ohio?
It’s a fact. I seldom go more than a week without getting a call from a REIT (Real Estate Investment Trust), pension plan, or other large investor who is looking for homes to purchase in our area. I also get calls from individuals looking to purchase only a few homes. You might think that they’re buying homes in foreclosure auctions or large blocks of “non-performing” mortgages, and you’d be right. Something that you may not know, is that they are also purchasing homes at retail prices. In other words, they’re not necessarily looking for a “deal.” They’re just looking to take a position in our market.
When this first started to happen, to be honest, I thought that this was some kind of scam. Getting a call from a person in California or New York claiming to be an investor with access to millions of dollars of funding seemed shady to say the least. As time went on and I began to investigate these investors, there were some that were scammers, but most of them turned out to be legitimate buyers. These institutional investors are not buying in our area by chance or mistake. They are here to buy to make a profit.
In my opinion, that is good news. How? Let’s just think about this for a minute. If you were a large corporate entity that employed a multitude of research professionals who were constantly evaluating real estate as investment in all parts of the country and you could buy anywhere based on their findings, where would you buy? My answer is, “where ever I could get the highest return for my money with the lowest risk.” I’m pretty sure that corporations think the same way and since they’re buying here, they must believe that the Greater Columbus area is the best value.
While we all probably already would have thought that, sometimes it’s just nice to have someone else tell us we’re right. Fortunately, that happens to me a lot! 🙂