Where do most people invest their savings?
While 401(k)s and mutual funds usually come to mind, financial assets only account for 34% of stored wealth. The majority of wealth, 66%, is held in non-financial assets, including real estate, business equity and vehicles. Of the non-financial assets, real estate holdings account for 64% of wealth.
How does real estate investment compare to the stock market?
Even taking into account the recent mortgage crisis, in the past 10 years real estate sales prices have INCREASED by 30.14%. Comparatively, stocks in the S&P500 have averaged just a 1.82% yield over the last 10 years. Even worse, total stock value actually declined by 30.08% over the last 10 years. That’s why so many people are panicked about their 401(k) retirement plans. The stock market is slowly bleeding these investments dry.
How big is the real estate investment market?
Approximately 27% of homes purchased are investment properties or second homes. That’s nearly 1/3 of the market and $300 billion in sales each year!
What percentage of investor deals close with an agent?
Currently, only 49% of real estate investment purchases close with an agent, often times because the investor can’t find a qualified agent who is adding value to their transactions. That’s an estimated $9.2 billion in missed agent commissions!
What’s the average income of a real estate investor?
The average investor earns about $87,201 a year - just 17% more than the average homeowner. Chances are, a good portion of your existing database falls into this category!
What type of property is an investor most likely to purchase?
Research shows that 63% of investor purchases are for single-family detached homes. If you already specialize in this type of property, you’re well-positioned for the investor market.
What’s the ideal location for an investment property?
Most property is bought within 20 miles of the investor’s primary residence. Additionally, 76% of investment properties are located in small towns, rural or suburban areas. That means you can help current clients find ideal investment properties in your existing market area.
When is the “peak season” for real estate investment purchases?
Unlike traditional real estate, which is generally “hot” during the warmer months of the year, investor purchases often occur in the local “off season” when the best deals are available. Therefore, working with investors can help offset the typical seasonality of your business … and keep the commission checks coming all year long!
How often does the typical investor purchase a property?
The average investor purchase a property every two years, while the average primary residence buyer purchases a new home every seven years. That means you can more than triple your average number of closings for EACH new investor client!
What percentage of investors pay cash for their property?
A whopping 48% of investors pay cash! That’s compared to only 15% of primary residence buyers. With today’s stringent financing requirements, cash is king – and can help guarantee you make it to the closing table!
Arlene Williams - Broker/Owner
A Nevada licensed real estate broker
7473 W. Lake Mead Blvd., Suite 100
Las Vegas, Nevada 89128