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The Surprising Profile of the Real Estate Investor

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

Many have got speculated that the large institutional conglomerates such as Blackstone, American Homes four Rent, and Colony Starwood rule investor purchases. However , a special survey on investor home buying by CoreLogic , opens in a new window 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 Publishers conference in Austin:

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

What is going on and why? Well, as it happens, 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 10 properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying. ”

Here is the break down 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 | Simplifying The Market As the graph shows, the percentage of “Mom & Pop” traders 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 simply by an investor are bought simply 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, let’s discuss the ways you can build or liquidate your current portfolio of properties.

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