Today, the average buyer of a primary residence will live in the property 9 years before selling compared to 6 years in 2007. Successful investors tend to buy and sell multiple properties over the course of a year and most often work with the same real estate professional on every one of those deals. The agent has the opportunity to earn commissions on both sides… the buy side and the sell side of the transaction or the buy side and the lease side. JUST DO THE MATH! The money is a great motivation, but there are other advantages of working with investors. One huge perk I personally appreciate is developing ongoing relationships with the investors. It’s also exciting and challenging collaborating on the property’s redesign, upgrades, choice of materials, color schemes and all the other necessary pieces of the of crazy puzzle we call the rehab process. It’s a great feeling of accomplishment to help the client achieve their rehab objectives and their profit goals for the project. So who are these Investors? Well, you might be surprised. According to the Survey here are the characteristics of the investor client:
•Investor’s median age is 45.
•Investor’s median annual income is $85,700.
•Investor’s property is approximately 21 miles from their primary resident.
Wait there’s more:
•48% are two earner households.
•47% are likely to buy another investment property in the next two years.
•58% purchased detached single-family properties.
•29% of the properties were 1,000-1,500 square feet
•47% purchased their property through a real estate agent.
(National Association of Investors Buyer Survey, 2013)