Local investors are having a significant difference in improving the residential housing market, according to Econohomes' new 2010-11 Real Estate Investor Report.
The report found that nearly 85% of local investors have provided necessary capital and resources into their communities, reducing the number of vacancies that are in those neighborhoods. These investors are between 36 to 55 years old who are self-employed or work part-time, the firm says.
Econohomes, which buys residential properties in volume at discounted prices from mortgage lenders and servicers, and almost instantly makes these properties available online to buyers at affordable prices, said there is particularly strong demand for the investors to support distressed REO properties priced under $50,000.
With the contributions from these investors, individuals who have been displaced by the recession now have the capability to afford to rent, rebuild their credit, and eventually buy these homes from investors.
"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 of Econohomes. "These investors are vital to stabilizing the residential real estate market."
The report surveyed the buying patterns of more than 17,000 investors in the nation and found that 57% of the investors are renting their properties, rather than immediately reselling it after conducting repairs.
