Are you noticing a trend of more investment type companies buying houses?
The answer to that is yes. I am seeing more of that. I think there are several reasons for it right now. The market is not real friendly to individual investors just because there are multiple properties that are having multiple offers on them, and so it’s very hard for an individual to compete with that. However, these large investment companies and particularly the ones that are nationwide, have an advantage in that they can do 1031 exchanges.
And, they can do them from states such as California that have got very expensive properties and moved them to particularly Texas that’s got no state income tax. The price per square foot is so much cheaper so they are moving their investments in kind of droves really from states like that into states like this in the Houston area specifically because we’re very eclectic and very international.
So, we have a lot of people who are looking to rent not necessarily to buy and so therefore they feel that it’s very good investment for them. So, I have seen it more. I saw it at first about three years ago and now it’s moved on to where I’m seeing it quite regularly. As a matter of fact, two of the houses, two of the six that we have in escrow right now are from those investment companies. They typically pay cash and they will pay either at asking or a little bit over and I think they feel that the trend coming up is going to be more and more people renting houses and they see that it’s going to be a bigger bottom line for them and so they’re moving forward.