Real Estate investor statistics: Episode #263

Hello! Welcome to Todd Miller TV. Today is Friday September 21st. Casual Friday here in the office. So I wanted to share some statistics without you about Real Estate investors. This is not specific to Las Vegas Market, but this is nationwide. Survey just came out this morning, and it is very interesting, some very cool data in here. So we’ll start with the numbers. 12% of all adult Americans are actually Real Estate investors. That’s 1 in 8, and what it means that you as an adult own a Real Estate property as an investment. So not the house you live in, it has to be an investment that you collect rent from. And of the number, a quarte of that number are active investors. And what that means is, that they have either/that their/they’ve bought properties in the last 12 months and they’re continuing to buy properties. So that is 3% of the U.S. population of adults are Real Estate investors. So that’s roughly 1 in 30 people or so, which is pretty good number. What it equates to a 7million people. so there’s 7million Real Estate investors out there. Okay, now, couple interesting stats about those people; then we’re gonna talk about how many of them are buying and what they’re buying. Okay, half of those people, so 3.5million people will buy 5 or more houses a year. Now, that seems like a lot but, if you’re a Real Estate agent, you probably are working with an investor. And if you’re a Real Estate agent listing properties, you probably have investors writing offers on your properties. And one of things we’re finding is most of our clients who are using us to help them purchase properties are investors. They’re not owner/your typical person who’s buying a house living in, it’s an investor. Okay. What was really interesting about that number is that half of them are going to buy 5 or more year. That’s like how they do it. They’re buying a lot of properties. So, that means some will buy 50, some will buy 10, some will buy 2, but half of them will buy 5 or more. Okay. Of that number, of all your Real Estate investors who are active, it’s almost exactly half men, and half women. And I think most people think of your typical investor/Real Estate investor being a man, but it’s not always the case. So that was very interesting. Okay. The most interesting statistic about Real Estate investors that I found was that 65% of them stated, and this was out of a couple thousand people that were called. 65% of them said, that in the next 12 months they will buy as many or more as they have in the last 12 months. So in the last 12 months if they bought 5 houses, in the next 12 months they;ll buy 5 or more. So the thought here was that Real Estate investors are still in the market, they’re still buying, and I think one of the reasons they’re doing it is because we’re in a historic point where prices are so low. There’s a lot of opportunity in the market his/long term. And then Real Estate investors keep in mind are not like people who go play the stock market or gate trader or anything like that. Real Estate agents tend to be long term and when they see prices where they are, they have a long time thought on that. What I didn’t find out was how many of them pay cash vs. get loans. And what you might be surprised to find is that, a lot of Real Estate agents are getting loans. They either buy in cash then later they’ll pull out the cash. There’s some loan programs where you can close on the property and immediately go pull the cash out at really low interest rate and use that money to buy more houses. So, I thought I would share that with you that, obviously it’s good to know what other people are doing because that kind of gives you the idea of what the future supply and demand is gonna be like. One reason is it’s super important, is ’cause there’s been this conjecture that next year there will be a flood of properties and prices would fall, but actually, that’s probably good if we do get a whole bunch of properties that start to hit the market 2013 because there are investors. One’s we’re working with now we cannot get enough houses for the and they get frustrated and we go “Hey, you have this criteria but right now that pool of you want, everyone in that area, and that price range and trying to get that same are alike so these properties disappear So I just think that if we do get more properties, they’re gonna get absorbed pretty quick. Well I think it’ gonna happen. A substantial downward pressure. That’s just my opinion, it could be wrong. Anyway, so I thought I would share that with you. I called that the Real Estate investor update. So that’s my update for today and hope to see you on another video. Thanks.