FIGHTING HEDGE FUNDS FOR HOUSING
What is a hedge fund?
- a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.
- A hedge fund is an investment vehicle that caters to high-net-worth individuals, institutional investors, and other accredited investors..
How does a hedge fund find and purchase property?
The term “hedge” is used because these funds historically focused on hedging risk by simultaneously buying and shorting assets in a long-short equity strategy
Put simply, a hedge fund is a pool of money that takes both short and long positions, buys and sells equities, initiates arbitrage, and trades bonds, currencies, convertible securities, commodities and derivative products to generate returns at reduced risk.
What can you do to find properties?
Once you actually decide to purchase a home or house you MUST DO YOUR RESEARCH… Check with Realtors or the MLS (Multiple Listing Service) for properties. Don’t just check the property present asking price, but check on sales of properties in the community that are similar to the property that you’re interested in purchasing. Also look into that properties activities or history to see sales and mortgages over the years.
Check with the sales in the community that the property is located. If the values of properties go up 20% or more over a year there might be new developments that’s going on, you can easily find out, or it could be something like investors trying to make a profit.
You must do some research. Usually you can find real estate professionals that will be able to assist you.