Big Data And Big Money Leave Houston Real Estate Investors With Crumbs

The reckoning has begun for Houston's community of residential real estate investors and entry-level home buyers. Big money and new software has them out-manned and out-gunned.

Houston, United States - August 14, 2019 /PressCable/ —

“Artificial Intelligence, sophisticated software, massive databases, one minute analyses – Houston home buyers and house investors don’t stand a chance against this army of information,” stated Raymond Campbell of HoustonHomeBuyers.net, “we are real estate professionals in danger of extinction. Some of us will survive on the fringes of the real estate market but I think this is an unstoppable force in residential real estate.”

If a residential property did not sell through a realtor and listed on the Multiple Listing Service (MLS) then it usually was a property in poor physical condition. Enter the real estate professional, house flipper, real estate wholesaler, or investor. They would buy the house, resell or repair, and eventually it would re-enter the housing stock after some (or many) repairs. That model is disappearing. The new model is “Big Data and Big Money” identifying the most promising houses in seconds, making offers in minutes, buying with cash, and keeping them as rentals. The professional Houston house buyers simply cannot compete.

The home buying interest is focused on the standard 3 bedroom, 2 bath house in the $250,000 to $350,000 price range. However, a second market segment is the house priced under $200,000 which is entry-level homes and in high demand. Big Data is acquiring its data from major collectors of real estate data such as Zillow, Redfin, and the Houston Association of Realtors.

The Big Money home buyers are some of the largest hedge funds in the world. They usually use cash for their purchases because it eliminates many potential delays and roadblocks such as working with lending institutions. Cash purchases pay off liens and mortgages which streamlines the real estate transaction.

But professional home buyers in Houston are not the only ones feeling the squeeze. Retail home buyers are finding fewer and fewer options when they decide to buy. The big hedge funds have absorbed a significant amount of the supply – and usually the better houses. So Mr. and Mrs. Homeowner have fewer houses to choose from and usually they are in poorer physical shape and less desirable neighborhoods. And to add a little more salt to the wound, this increase institutional demand has and will continue to drive up home prices.

For better or worse, this is the new real estate market for investors and retail home buyers. Everyone will have to adapt.

Contact Info:
Name: Marylyn Gambill
Organization: HoustonHomeBuyers.net
Address: 440 Louisiana Street, Houston, TX 77002, United States
Phone: +1-281-656-5590
Website: https://houstonhomebuyers.net

Source: PressCable

Release ID: 88907781

Latest News

Woods shoots 64 to take two-stroke lead at Zozo Championship

Dec 11, 2019

INZAI CITY, Japan — Tiger Woods shot a second straight 6-under 64 on Saturday to take a two-stroke lead after the second round of the rain-hit Zozo Championship. Teeing off in front of empty stands, Woods picked up where he left off after a 64 in Thursday's opening round with a birdie on the first hole, one of seven on the day that gave him a 36-hole total of 12-under 128, two shots ahead of Gary Woodland. Woods took the lead on the par-4 17 when his approach shot landed a foot from the hole and he made the easy...

Rain pushes PGA Tour Champions' final round to Monday

Dec 11, 2019

RICHMOND, Va. — Heavy rain forecast to last throughout the day forced the postponement of the third round of the PGA Tour Champions event on Sunday. The Dominion Energy Charity Classic, the first of three tournaments in the tour's Champions' Charles Schwab Cup playoffs, will resume on the Country Club of Virginia's James River Course at 8 a.m. Monday. Scott Parel and Tommy Tolles share the lead at 12 under par, with Colin Montgomerie one shot back. Parel won twice last season on the tour for players 50 and over, and Tolles is seeking his first victory in three years...

Na shoots 61 and takes lead in Las Vegas

Dec 11, 2019

LAS VEGAS — Kevin Na matched his career-low Saturday with a 10-under 61 on a day of low scoring in Las Vegas to build a two-shot lead over Patrick Cantlay in the Shiners Hospitals for Children Open. Na was pumping his fist after every putt down the stretch at the TPC Summerlin, which yielded six scores of 63 or better. Na, who lives in Las Vegas, set the tournament's 54-hole record at 22-under 191. Cantlay was staying with him until he failed to get up-and-down on the reachable par-4 15th and made bogey from the bunker on the par-3 17th....

Column: From orphan in China to playing with pros at Pebble

Dec 11, 2019

Kayli Lucas is headed to Pebble Beach to play in a PGA Tour Champions event, a dream week for a 17-year-old girl from Tennessee who knew nothing about golf until a friend from church invited her out for a lesson at The First Tee. She liked how the club felt in her hands. Like so many others brought to golf, she found that the greatest appeal was the individual test to get better. "I'm goal-oriented," she said. "I wanted to prove to myself how far I can go on my own." How far she can go? It's how far Kayli...

The Latest: British PM questions Thomas Cook bosses' pay

Dec 11, 2019

LONDON — The Latest on the collapse of British tour company Thomas Cook (all times local): 6 p.m. Prime Minister Boris Johnson says a "huge effort" is underway to bring home British tourists and passengers stranded by the sudden financial collapse of travel company Thomas Cook. He adds Monday that steps needed to be taken so "you don't end up with a situation where the taxpayer, where the state is having to step in and bring people home." Johnson asks "whether it's right that the directors and the board should pay themselves large sums when a company can go down...

Search

5 Stars Discovery brings you to the stories from people around the world sharing on the finest luxury resorts, high-end city hotels, and exclusive hideaway to make sure you’ll get the premium experience.