October 20, 2021
Real Estate

Real estate investors aren’t all the same

Traditionally, real estate investors make up a predictable segment of the residential real estate market (10%-15%). Made up of mostly individuals and small companies, these investors typically purchased distressed properties at a discount with the intention of fixing them up and selling for a profit. Other smaller investors focused on the income potential of holding the property long term and realizing the rental income on an annual basis. These “mom and pop” investors play an important role in the overall residential real estate market.

Since the recovery of the 2008 housing crash, a new type of investor has entered the scene – the institutional investor (often referred to as “iBuyers”). Originally, these investors tried to mimic the strategies of their smaller counterparts but at a much larger scale with the benefit of the financial backing of Wall Street and other hedge…

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