Visio Financial Services, a residential real estate marketplace lender in the U.S., revealed the results of its Annual Residential Real Estate Investor Report today. The report found that investors are expanding their property searches, buying in higher price bands, and broadening their strategies in 2015.
According to Visio, growing trends in the multi-billion dollar residential real estate investment market indicate that this asset class is growing in popularity as alternative lending fills the financing gap left by traditional capital. The report gathered data from single-family real estate investors who purchase homes to fix-and-flip or to hold in their portfolio as rental properties.
“Although investment properties are not as abundant as in previous years, investors are finding new and better ways to flip more houses and grow their rental portfolios,” Visio CEO Jeff Ball said. “We lend exclusively to residential investors, so we see the challenges that they face in responding to rapid market changes. The results of our survey support our experience that investors are smart, resilient, and resourceful as they embrace the rebounding property market.”
The data also reveals that investors are actively seeking bigger and better deals in places beyond their local markets. Half of all survey respondents said that they intend to buy four or more homes this year. This number is double the amount of investor that purchased homes in 2014.
Visio found that 63 percent more investors are considering purchasing properties over $200,000, while sub-$40,000 deal interest has decreased, compared with last year’s report. Investors are also seeking to enhance their investment return strategy by fixing and flipping homes and building their rental portfolios.
“Eighty-three percent of our part-time investors expressed interest in going full time, and are seeking fast, simple, and dependable financing in order to do so. Of our full-time investors, more than 90 percent are looking to accelerate their businesses with more options for working capital,” Ball said. “Each year, our survey continues to tell us that investors want to build their small businesses, and are looking for the tools they need to succeed.”
To view the full survey results, click here.