Tampa, Florida, December 17, 2007 – Online property auction site FastHomesolutions.com is reporting a record number of foreign investors visiting its web site in search of real estate bargains, especially in the Sunbelt area of the United States. The current weakness of the dollar against foreign currencies is a key contributor to the trend, which works to the advantage of lenders anxious to sell their REO (real estate owned) inventories of defaulted properties to foreign investors.
“It’s a huge opportunity for REO asset managers,” said Jim Case, CEO of Fast Home Solutions, which recently launched its online property auction website at www.FastHomesolutions.com. “We’re seeing investors from all over, especially France, Germany and Belgium, as well as from the United Kingdom, Canada and Australia. They are eager to buy U.S. homes, villas, properties now, while their own currencies are strong against our dollar.”
The British pound is particularly strong, currently trading at over two to one against the dollar. “This trend means that private investors and investment groups are highly motivated to buy,” Case said. “There will be more millionaires coming out of this downswing than ever before.” Foreign investors often use a group strategy when they acquire properties, pooling buying power and distributing risk. They buy multiple properties in targeted areas, then hire local property managers to oversee them and keep them rented. “Canadians are very active right now, especially in the Sunbelt areas like Florida,” Case explained. “Likewise, people from the UK are very familiar with Florida as a vacation spot, so when they see bargains on our website, they are quick to seize the opportunity to purchase.”
This is good news for loan servicers and loss mitigation professionals charged with disposing of owned real estate. The online auction concept, while not new, is experiencing a surge of popularity because of the ease with which properties can be vetted by potential buyers, whether for investment or owner occupancy.