Real estate investors outpace Congress when it comes to spending money on the rehabilitation of foreclosed properties, a new survey completed by ORC International claims.
The study was completed for real estate investing social network, BiggerPockets.com. The survey is called the BiggerPockets.com/Memphis Invest National Survey.
The results show investors spend about $9.2 billion a year repairing damages caused by foreclosures. In comparison, Congress over the course of four years authorized $7 billion for its Neighborhood Stabilization Program, which repairs damaged foreclosures.
The median price paid by investors restoring properties is $7,500 a unit. About 20% plan to spend $10,000 to $30,000 revamping their next home.
Sixty-five percent of real estate investors plan to buy more residential properties over the course of the next 12 months, setting a trend where private investors are tapping into opportunities in the foreclosure market. Those investors amount to roughly 4.5 million buyers.
Investors in 2011 purchased 1.23 million homes, a 64.5% increase over the 749,000 sales recorded in 2010, the National Association of Realtors said.