THE SURPRISING PROFILE OF THE REAL ESTATE INVESTOR

Dated: 07/18/2019

Views: 39

The Surprising Profile Of The Real Estate Investor

The Surprising Profile of the Real Estate Investor

  • Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?

Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.

Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:

“Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…

What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”

Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:The Surprising Profile of the Real Estate Investor | Keeping Current MattersAs the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.

Bottom Line

Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, speak to a local real estate professional. They can help you build or liquidate your current portfolio of properties.

Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Latest Blog Posts

THE SURPRISING PROFILE OF THE REAL ESTATE INVESTOR

The Surprising Profile Of The Real Estate Investor Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?Many have speculated

Read More

SHOULD I REFINANCE MY HOME

Should I Refinance My Home? With the recent lower interest rates, many homeowners are wondering if they should refinance.To decide if refinancing is the best option for your family, start by

Read More

HOME PRICE APPRECIATION FORECAST

Home Price Appreciation Forecast Questions continue to come up about where home prices will head throughout the rest of this year, as well as where they may be going

Read More

ToDos Your July Home Checklist

1. Clean porch lights.If you have glass light fixtures that are easily removed, bring them inside and wash in a dishpan of warm water with gentle soap. If the fixtures must stay in place, turn the

Read More