Uninhabited real estate. Vacant homes. Vacant lots. Distressed homes. Each, categorized as shadow inventory.

Properties in foreclosure. Bank REO’s. Properties which will soon be listed for sale…but have not yet been listed for sale. Shadow inventory. City-owned properties? These properties should be included in the same category – shadow inventory. But they’re not.

Shadow inventory is all too often overlooked as a property category through which the provision of increased access to affordable homes can be expanded in neighborhoods where limited opportunities to find affordable housing now exists.

Distressed properties make up a significant portion of shadow inventory. Distressed properties sell at lower prices than do properties which are in good condition. Accordingly, sales of shadow inventory homes can contribute to lower area home values. Yet these lower shadow inventory sale prices create affordable housing opportunities. Through the lower sale prices. As such, the acquisition of a shadow inventory home could enable a buyer to gain access to affordable housing..

Properties in foreclosure. Bank REO’s. Shadow inventory. Once again, how about city-owned properties?

City-owned properties would not necessarily be classified as “shadow inventory.” Classifications aside, one upside found in purchasing a foreclosed home – or a bank REO – can also be found in purchasing a city-owned property. This upside being, an opportunity to get into a home of your own. Affordably.

Benefits found in shadow inventory homes are not bestowed only upon those who are looking to find affordable housing opportunities.

Acquiring shadow inventory – and city-owned properties – creates a nice opportunity for real estate developers. As developers are able to acquire shadow inventory and city-owned properties at less-than-market sale prices.

Then, as developers reposition shadow inventory and city-owned properties to “performing properties,” developers are able to put the now-performing properties on the market. Selling the properties they purchased at less-than-market prices at market prices. In a limited inventory market. A profitable exercise.

Affordable housing advocates…this is one good path to consider.

Real estate developers…this is one good path to consider.

It’s rather ironic, yet factually accurate, that for-profit real estate developers are able to benefit by following along the same pathway that affordable housing advocates travel. Yet this is a unique situation we do have, within the space of identifying benefits attributed to purchasing shadow inventory and city-owned properties.

Is what we are talking about here a liberal real estate path? Or is this a conservative real estate path? Is this a real estate path for FOX viewers? Or is this a real estate path for MSNBC viewers. The answer is, All of the above. Thinking About Becoming a Real Estate Developer?