11 Things You Didn't Know About Real Estate Investing

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world.” — Franklin D. Roosevelt

FDR recognized how lucrative real estate investing was in the 1930s. What he said then holds true today. That’s why thousands of investors choose real estate as their asset of choice. Whether you’re an aspiring real estate mogul or a long-term investor looking to learn something new, this post is for you.

1. Forbes predicts global real estate is the safest bet for investors in 2016 (Tweet This Stat):
   A Forbes investing article published yesterday explains, “Investor sentiment toward real estate is projected to remain positive this year, according to Colliers Global Investment Outlook. Primary target markets will continue to draw the most interest, with moderating risk appetite, stable economic conditions, and low interest rates driving increased investment in secondary markets.” Furthermore, US investments continue to be lucrative. Of 600 investors surveyed for the article, 94% say they will increase their investments in the US this year.

2. There are 28.1 million Americans investing is residential real estate (Tweet This Stat):
   Auction.com breaks it down for us:

   • 1 in 9 US adults owns a residential property
   • 9% of US adults own investment properties
   • 3% of US adults consider themselves to be investors.
     (Auction.com)

3. Real estate caught up to IRAs and money market funds as a US investor asset (Tweet This Stat):
   The number of real estate investors in the US today is about the same as the number of Americans who have Roth IRAs. It’s also nearly the same as Americans who are money market fund shareholders.
   (Bigger Pockets & Memphis Invest – infographic).

4. RealtyMogul funded the largest online platform bridge loan ever in 2015 (Tweet This Stat):
   The bridge loan was for a whopping $49 million dollars. From the website: “CEO Jilliene Helman said of the deal, ‘As a marketplace leader, this deal demonstrates not only our ability to attract quality sponsors but also our capacity to execute on large-balance loans.'” Indeed it does!
   (RealtyMogul.com)

5. 37% of real estate investors do not have a college education (Tweet This Stat):
   You always see articles on top tech moguls and wildly successful entrepreneurs who built an empire without a college degree. It appears that a similar trend is prevalent in real estate investing. While a majority of investors have a bachelors degree or higher, a surprising 37% have never attended college.
   (Bigger Pockets & Memphis Invest – infographic).

6. 34% of active real estate investors make more money than the average US household (Tweet This Stat):
   It takes money to make money! According to the Social Security Administration, the median income for a US individual in 2015 was $28,031, making the average household income less than $60,000.00. In contrast, a majority of active invstors are pulling in $75,000 a year or more.
   (Bigger Pockets & Memphis Invest – infographic).

7. $9.2 billion dollars is spent on investment property rehab and repair each year (Tweet This Stat):
   Investors spend a median of $7,500 on rehab and repair per investment property. When you multiply that out, it amounts to a massive annual spend that is divided 50/50 between local labor and suppliers.
   (Bigger Pockets & Memphis Invest – infographic).

8. A majority of real estate investors (31%) are between the ages of 35 and 44 (Tweet This Stat):
   Investors are getting younger! In 2014, 28% of real estate buyers seeking homes as investment properties were under the age of 35. 31% were between the ages of 35 and 44, and only 27% age 55 and older.
   (National Association of Realtors (NAR) 2014 investor survey)

9. According to NAR, the top reason investors bought property in 2015 was to rent it out (Tweet This Stat):
   To generate income from rent (37%), because they got a good deal on it (17%), in anticipation of good returns (15%), for retirement (10%), to use as a personal or family retreat (6%), because mortgage rates were low (7%) and for unspecified reasons (6%).
   (National Association of Realtors (NAR) 2014 investor survey)

10. The average length of time investors plan to own a property they purchase is 5 years (Tweet This Stat):
    45% of investors plan to own for six years or less, and only 15% plan to own for 11 years or more. By contrast, among buyers who purchase a primary residence, 30% plan to own their property for 11 years or more, double the number seen among investors.
    (National Association of Realtors (NAR) 2014 investor survey)

11. Over 3/4 of all residential property owners agree, it’s a good time to buy real estate (Tweet This Stat):
    78% of primary residence owners believe it’s a good time to buy. Among vacation homeowners, 85% believe it’s a good time to buy. Among investors, 86% feel confident that it’s a good time to buy.
    (National Association of Realtors (NAR) 2014 investor survey)

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Posted in Real Estate Investing