“It’s an ill wind that blows nobody any good.” John Heywood, 1546

OUR CURRENT FINANCIAL CRISIS and the resulting real estate melt down has certainly been an “ill wind.” Just ask an investor who bought property in Myrtle Beach a couple of years ago. Some of them have lost all their equity and then some, and are struggling to keep up with negative cash flows as the rental market slows down over the winter months.

Some investors haven’t made it and are now in foreclosure. And that’s bad news for everyone involved, including the lenders who are trying to get these “bad loans” off their books as quickly as possible. Lenders don’t want to hold on to property for a year or more until the market stabilizes.

SO WHERE’S THE “GOOD?” Investors with cash or great credit are looking at Myrtle Beach again and finding deeply discounted property. The increase in foreclosures has driven prices to bargain levels. In today’s market, some lenders have become highly motivated sellers.

Nevertheless, buyers still need to do their homework, comparing prices and selecting the best from all the rest. Savvy investors have their financing lined up in advance, know a good deal when they see it, and are prepared to make an offer. The best deals go quickly even in this slow market.

WHEN WILL THE MYRTLE BEACH REAL ESTATE MARKET BEGIN TO RECOVER? That’s anyone’s guess, but it will take a while.

It’s a matter of supply and demand. When foreclosures and developer discounts run their course, excess supply will be reduced and the market will begin to stabilize. When lenders start relaxing their lending practices, more buyers will qualify for loans and the market will begin to stabilize.

Until then, only a few buyers will be able to take advantage of today’s foreclosure market – first time home buyers, and buyers with cash or great credit. If you think you might qualify, call me, toll free, at 1-888-494-8654. I’d be happy to help you find a real deal in this market.

Resource: Jessica Foster, The Sun News, Myrtle Beach