According to CBS MarketWatch, U.S. real estate purchases by foreign nationals over the last year have totaled $92 billion. We are all seeing this in many “hot”markets. Buyers are outbidding each other and prices rising at an absorbent rate. Those that were in the game pre-2007 saw this happening just before the market crashed in 2007. There were many foreign buyers back then buying properties for cash to park their money here in the U.S. which led in many markets to prices rising faster than they should have. These were the hardest hit markets in the last crash – Florida, Las Vegas, California, Chicago, just to name a few.
Here is a great article “Foreign investors pose threat to residential real estate” from MarketWatch, explaining exactly how this is happening and what could come of it.
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