Get the first in-depth report of the single family real estate investor set to release – The Iceberg Report. The Iceberg Report is a comprehensive analysis of the single-family residential investment industry focusing on investor behavior, practices and how single-family REI.
A QUICK ANSWER AND EXECUTIVE SUMMARY
After completing our first Invaluable Investor Study with Harris Interactive in 2007, we were surprised that no qualitative survey of industry behavior was available in Q4 2016. There is ample quantitative data.
The total of 23 million single-family residential rental properties goes beyond SFR rentals (16 million) and includes up to four doors in a single building (7 million). Arguably, even mobile home rentals (2 million) should be added as a rental property class. The capital value of this total asset base is north of $5 trillion. As of Q4 2016 these properties provide homes for more than 68 million souls, or 21.25% of the U.S. population.
The National Association of Realtors’ 2017 Investment and Vacation Home Buyers Survey found investors bought 1.14 million resale houses in 2016, or 21.88% of the 5.35 million total home resales. Using December 2016 retail housing values, these resale transactions added $269 billion in capital value to investor portfolios. RealtyTrac data from 2016 consistently finds 20% to 25% of these properties are fixed and flipped to retail sale. At least 75% of these houses go to the existing SFR rental base. Annually more than $100 million in professional-services expenses—plus untold do-it-yourself investor money and time—is spent to keep these rentals tenanted, managed, maintained, financed and cash-flowing for investors. No major brands dominate or manage a major share of this market.
In keeping with the iceberg analogy, much of the real estate investment market is unseen and is segmented horizontally (by geography), vertically (by investor, segment and capacity) and by real estate category. The Iceberg Report examines this.
You can download the complete report (A $69.00 value) for free using the form below!
ICEBERG – THE TIP & THE UNSEEN MASS
– Flashy “as-seen-on-television” real estate mogul
– Wannabee & Fast-Buck Investor
– No money down get-rich-quick gurus
– TV Flippers
THE UNSEEN MASS
– 8 to 10 million average Americans participate
– Take the risk
– Provide housing & massive social value,
– Make a living & successfully invest in SFR residential homes.
– Real estate sales industry does not quite appreciate their impact
– Perennial & Untold Value
PERCEPTION IS REALITY
Landlords & Real Estate Investors house about 25 million households or 60 million people. There is a massive difference between the image of this market & the reality. This trillion-dollar market is far from monolithic. Investors range from small investors with one rental home, to serious individuals with two or three all the way up to massive Wall Street institutions with thousand+ home portfolios. Hundreds of thousands of people are employed serving tenants, landlords and investors.
THANK YOU TO OUR SPONSORS
ABOUT THE AUTHORS
Steve Murray – REAL Trends
Steve Murray is the president and owner of REAL Trends founded in 1987. Murray has led pioneering real estate companies and is a nationally recognized leader, researcher and speaker in the residential real estate industry. REAL Trends Analytics is one of the many reports and service REAL Trends providers for members and others and consists of the full REAL Trends Housing Market Report,
He has co-authored four books on the valuation of residential real estate brokerage firms. He is co-author of “Game Plan,” for residential brokerages and “Game Changers: The Unfounded Fears and Future Prosperity of the Residential Real Estate Business.” Steve co-authored two previous “Invaluable Investor Studies” with NEXZUS Publishing Group. He has served dozens of state and local Realtor® associations and MLS organizations in a consulting capacity and has consulted with several large technology firms over the years.
Andrew Waite – NEXZUS Publishing Group
Andrew Waite founded Personal Real Estate Investor Magazine and served for 12 years as publisher until its sale. Born in Auckland, New Zealand, Waite has practiced aviation & product liability law with celebrity lawyer Melvin Belli, worked with Arthur Anderson and helped design one of the first word processing and practice management systems for lawyers. He is a recognized expert and extensively published in sales and marketing automation processes, sports marketing and sponsorship.
Waite has been an investor since 1992. He has been involved in publishing since 1987 and founded Personal Real Estate Investor Magazine in 2003 as his 9th magazine title for an underserved audience.
NEXZUS Publishing Group identified and defined a renovation task identification and management system for a consortium of magazine clients. This initiative was led by The Home Depot and once deployed helped renovate over 100,000 homes and generate millions in materials and service revenues for the consortium.
NEXZUS Publishing hosted industry seminars and networking gatherings to share expert knowledge, experience and mutual sales channels to help investors and providers to get the best performance from their investments or investment service business.