This document is Visio Financial Services' annual residential real estate investor report. Some key findings include:
- Residential real estate investors have a median household income of $100k-$125k and most are male, married, and over 50 years old.
- Many investors want to grow their business but feel constrained by lack of access to cheaper loans and quality deals.
- Investors are increasingly looking at higher-priced properties as prices rise and inventory decreases. More are also searching outside their home state for deals.
- While investors often plan to expand their strategies, most continue focusing on either rentals or flipping rather than both. Access to capital remains a challenge for expanding operations.
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2015 Residential Real Estate Investor Report
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t h e a n n u a l r e s i d e n t i a l r e a l e s t a t e
I N V E S T O R R E P O R T
2. Each year, leading residential real estate lender Visio Financial
Services conducts a survey of the residential investors in their
database to better understand their customers’ needs, as well as to
track growing trends in the ever-changing real estate market.
With more than 14 million single-family rental properties in the
United States, the residential real estate investment market is a
multi-billion dollar investor opportunity annually. Further, it is
highly fragmented, with 68% of investors owning fewer than seven
properties. Despite this market’s size, the fragmentation has meant
very little analysis of this space.
Visio Financial, in business since 2011, has originated more than
2,800 loans to investors exclusively, yielding a deep understanding
of the real estate investing space.
Thanks to Visio’s market knowledge and sizable database, they
conduct an annual survey of residential investors at the start of
each year. Real estate investors, whether they own two properties
or 200, share their experience and plans, giving valuable insight
into the residential real estate market. Visio provides the resulting
Annual Residential Real Estate Investor Report to investors, lenders,
analysts and anyone else interested in this massive market.
t h e a n n u a l r e s i d e n t i a l r e a l e s t a t e
I N V E S T O R R E P O R T
3. Investors Adapt to a Healthier Market
• Investment Portfolio Growth: 49% of investors are planning on
buying four or more houses in 2015, compared to the 25% who
actually bought four or more in 2014.
• Higher Price Bands: 63% more investors are considering
$200K-plus properties than last year, whereas interest in
sub-$40K properties has decreased.
• Broadened Property Searches: 34% of investors are searching for
investment property out of their home states as local property
deals dwindle.
Market Ripe for Rapid Growth
• Working Capital: 92% of full-time investors believe that access to
lower-cost loans could grow their businesses faster.
• Help Wanted: More than one-fifth of full-time investors need
more high-quality employees and contractors in order to sustain
their growth.
• Career Investors: 83% of part-time investors expressed interest in
going full time, provided they had more funding and quality deals.
• Minority Growth Sector: African-Americans comprise 22% of the
investor class, up from 15% in 2014, and significantly higher than
the general population (13%).
E X E C U T I V E S U M M A R Y
14. Simply put, we thrive on real estate. We’ve bought, sold or financed
more than $250 million in residential real estate nationwide, and we
understand the unique needs of residential investors.
Drawing on years of experience in the distressed property field, we
crafted our loan products with three words in mind: fast, simple,
dependable. As the fifth-largest hard money lender in the U.S. (as
ranked by Scotsman Guide), Visio offers unique mortgage loans
l o a n s f o r i n v e s t o r s , b y i n v e s t o r s
designed to meet the needs of investors purchasing single-family
residences. Since our founding in 2011, we have originated more
than 2,800 loans to investors nationwide. Our mission is to deliver
fast, simple and dependable mortgage financing that assists investors
in the redevelopment of houses into quality, affordable homes.
For more information about this report or Visio Financial, please
contact us at info@visiolending.com.