Research and analysis identify trends in residential and small commercial property investment, guiding brokers’ business growth strategies
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–#investmentproperty–Velocity Mortgage Capital, a nationwide, specialty finance lender dedicated to helping brokers understand and service the needs of independent real estate investors, released the findings of its WIN (What Investors Need) quantitative research survey. Results from interviews conducted with almost 300 independent residential and small commercial property investors gives brokers insights into the needs, interests and behaviors of their potential clients. Velocity shared initial findings and analysis during “Funding Feud,” a gameshow the company sponsored at the NAMB (National Association of Mortgage Brokers) National 2019 event on September 14 in Las Vegas.
Results from the research on investors include:
Single-family homes are the most common type of investment property. One of six investors owns a single-family home that is used for investment purposes.
- When combined, residential 1-4 properties, which include single family units, condominiums, townhomes and apartment buildings with less than five units, are by far the most popular types of investment properties among independent real estate investors.
- About 11 percent of independent real estate investors own a multi-family property with 5+ units with a value that is less than $10 million.
- Mixed-use buildings, composed of commercial and residential units, account for 4% of investment properties.
- Small commercial buildings valued at less than $10 million account for 13% of investment properties.
60% of investors rely on the assistance of a real estate agent to find investment properties; however, age plays an important role in the adoption of other methods.
- Investors under age 55 are 38% more likely to engage with online listing sites and are 33% more likely to use an Internet search engine when researching investment properties.
- Investors over age 55 are 67% more likely to utilize real estate auctions and 20% more likely to consult with a friend when looking for investment properties.
“Independent real estate investors and small business owners play a key role in helping communities grow and prosper, and Velocity’s WIN research helps brokers increase their businesses by providing an understanding of how investors find, evaluate, and select investment properties, brokers and financing solutions,” said Michael Oddi, Chief Marketing Officer for Velocity Mortgage. “We commissioned the WIN survey for the benefit of brokers and are happy to support their businesses with its findings and our subsequent analysis.”
Actor and television personality John O’Hurley, known for the role of J. Peterman on Seinfeld and as the fifth host of the Family Feud TV gameshow, hosted Velocity’s Funding Feud gameshow event at NAMB as an entertaining, fun and engaging way to inform brokers of the survey findings.
“The Funding Feud was entertaining, fun, and highly educational,” said Kimber White, incoming president of NAMB. “Even though I’ve been in the mortgage business for over 30 years, I learned some important facts about real estate investors that I never knew.”
To see the full results of the WIN survey along with insights on how to take advantage of the findings, visit velocitymortgage.com/win.
About Velocity Mortgage Capital
Since 2004, Velocity Mortgage Capital has funded over $3.5 billion in investment and commercial property loans. By focusing more on the property’s value and revenue-generating potential, the company’s asset-based investment property loans enable brokers to meet the unique needs of real estate investors who are tough to qualify, including W-2 employees, self-employed entrepreneurs and small business owners. Velocity’s financing programs range from temporary, short-term, credit repair and fix-and-flip programs to 30-year, fully amortized mortgages with flexible terms to meet the diverse needs of real estate investors. Because every borrower, even the extraordinary ones, deserves an opportunity.
Nonfiction for Velocity