Dear Monica: We have made a few offers on houses lately and twice have been outbid by a hedge fund. Is this a something new? Ryan G.

Dear Ryan: Hedge funds buying real estate is not something new but the volume of such sales has increased. Hedge fund buyers have strong buying power and have often squeezed out individuals buying properties for themselves. Hedge funds usually pay cash and waive all contingencies.

Some individuals do this too but many cannot. For the long term, it is best not to take more risk than is prudent.