Why is there an increasing trend in the number of independent real estate investors?
The traditional 30-year mortgage loan, being the most sought form due to low monthly payments, has its figures appearing to be at a low ~3.40 compared to 4.17% from 2014, which only makes the investment market more appealing and yielding. As a matter of fact, the low interest rates are what helped the investors bring back up the housing market by restoring buyer confidence and stabilizing the prices. Many have come to witness this trend and have jumped on it, which explains the increase in the number of investors looking to purchase a second investment property to lease. This is also due to the rising rental rates and decreasing vacancy rates.
What could be stopping more people from becoming real estate investors?
Many investors still have not shrugged off the 2008 housing market epidemic, and are hesitant about taking part in this recent re-emerging market, which is currently outperforming the stocks and bonds market reaping nearly over $100 billion. In addition, they’re not certain if they simply have what it takes to take part in the real estate industry. Right now there are about 7 million active
real estate investors with plans to purchase more properties. Those 7 million investors happen to only make around $75,000 a year, 37% have a high school degree or less and only 7% put down more than 50% on down payments. That being said, you now have an idea of the average persona of millions of successful real estate investors.
Another issue that faces many real estate investors, or those who are considering the investment business, is their lack of awareness of the potential properties they can set their hands on merely due to their focus being set primarily on their region. It’s pretty common for new and experienced investors to explore only within the 20 mile radius of their residence. If you are one of those investors, you might find yourself very familiar with the region you grew up in, but that might be tying down your options when you’re on the look for real estate properties. It’s absolutely natural to focus on the market you understand and have an effective, in-depth knowledge about keeping an eye on trends, spending habits, mortgage rates and other conditions that help any investor predict any changes in these factors. But while you’re focusing on your region, you’re missing out on investment properties with more attractive returns in other cities or states.
What can encourage more people to become real estate investors?
Many online platforms for real estate investment data decided to challenge the struggle with long-distance investing. Amongst them is Mashvisor, whichoffers the option to search for real estate properties by state, city, or by zipcode with the additional service of providing a nationwide real estate investment data analysis, all of which any investor can take to their advantage and make more sophisticated and confident investment decisions.
With the emerging integration of data analysis through technology, ridding the use of traditional cost analysis methods such as excel sheets, you’ll find that most brokers are lagging as they’re trying to catch up with this emerging technology. This technology advancement boosted the investment industry dramatically by allowing the automation of real estate data, becoming faster and more efficient.With platforms like Mashvisor, any investor can have nationwide complete cost analysis at their hands; obtainable within seconds of searching. Some of these platforms also integrated interactive property analysis; where investors can use the best of their knowledge on setting known expenses, mortgage rates, and other cost analysis as you wish to find the resulting return on investment. In case they’re not prepared with sufficient data to calculate cost assumptions, such platforms like Mashvisor can provide prepared and estimated values on cost assumptions and expenses based on average data in that neighborhood.
“We aspire to help real estate investors attain investment property data to be able to make intelligent investment decisions. We believe that you should be able to quickly research investments nationwide, become well-informed on multiple markets and meet your financial goals,” stated Peter Abualzolof, CEO and Co-founder of Mashvisor.
Currently, there is a rising trend of buyers who purchase residential properties, vacation homes, condos and even apartments to host on real estate marketplaces such as Airbnb. Mashvisor happens to provide insights of Airbnb properties including reviews, nightly pricing, revenue by property type and size, and seasonality trends.
As Abualzolof stated:
Mashvisor has built interactive property and neighborhood insights that include analysis of Traditional and Airbnb pricing, occupancy rates, seasonality trends, revenue potential, cost assumptions, cash flow calculation, and financial and purchase investment analysis to enable investors to overcome their limitations of making business intelligent investments. Our focus is delivering informative real estate analytics so that investors can make informed decision in their investment.
If you’d like to see how to use Mashvisor to find and analyze properties, schedule a demo here.