If you’re in the real estate business, particularly a real estate agent or lender, you need to be paying attention to real estate investors! This segment of the buying public can add nicely to your business!
Interesting tidbits about real estate investors:
- 1.24 million residential units were sold to individual investors in 2011.
- That number represents 28% of all single-family dwelling sales that year. Single family dwelling, as defined by the Federal Housing Finance Agency, FHFA, includes small multi-family complexes of up to four units.
- Investors bought more single-family homes in 2011 than did first time homebuyers.
- Approximately 23 million rentals (up to 4 doors) are owned by small companies and individuals
- This represents approximately $2.3 trillion dollars owned and operated by small companies and individuals
- This base rental number expands at about 5% annually
This buying class, individual real estate investors, is typically ignored as a relatively insignificant buying group. When the numbers come together, however, you clearly see that is not the case!
Average value per sales price of investment properties purchased by this group last year were $96,580. This means the total assets acquired by this segments total about $120 billion.
Many people have a bad attitude about real estate investors due to poor press and lack of real media attention. The few “scammers” or bad TV get-rich-quick gurus get all the attention and give the industry a bad rap. However, these obviously do not represent the majority of investors. There is a huge force of buyers being overlooked by the very people who can profit most from working with them.
The first time this study was done was in 2008. At that time, it was found that real estate investors accounted for 28% of the single family dwelling purchases.
This information is from a study done in 2012 by Real Trends and Personal Real Estate Investor Magazine.
Can your business take advantage of working with this buying class? Are you a part of this growing group?
