"This new research shows a growing grassroots movement of new, part-time, local investors acquiring, rehabilitating, renting, and reselling the tens of thousands of distressed REO properties in the market," said Jeff Ball, President, Econohomes. "These investors are vital to stabilizing the residential real estate market, and Econohomes is extremely proud to be a key part of the solution."
Other key findings include:
- Most investors are renting their properties (57%), rather than immediately reselling after repairs. We believe this is a result of the small number of people who currently can qualify for a mortgage.
- Millions of people fit the profile of these small, local investors – 36-55 years of age; self-employed or works part-time; making less than $100,000 in household income.
- Bulk buying is more hype than reality with most investors buying one property at a time within driving distances of their home. Very few (11%) are interested in buying in bulk, especially across state lines as most bulk packages are offered today.