Episode 1: Why Real Estate
Investability® was created to help everyday investors tap into the lucrative marketspace of single-family residential (SFR) investing. With over 15 million rental properties in the United States, the industry is huge, but it’s also highly fragmented. Our goal is to educate and empower the mom and pop investors out there about the opportunities available within the real estate investment space because it’s the small investors who truly drive the industry. While hedge funds and Wall Street owned most of the rental inventory on Main Street in the ‘70’s, there has been a dramatic shift over the last few years. Now the majority of rental housing is owned by investors that have between 1-10 rental properties. And what’s better? The everyday investor now has access to the same high-quality data as the institutions and can benefit from some of the operational advances they created.
There truly has never been a better time in history to be a real estate investor. Property managers are able to manage your property virtually anywhere, eliminating the geographic limitations of the past. Tenants can pay their rent online. Market data to find and assess opportunities has never been easier to attain. And now, online one-stop-shops are popping up to help the mom and pop investor even more!
Investability is a platform connecting investors at any level and in any geography with institutional-quality rental and market data, professional resources to do some of the heavy lifting for them, and investment properties in strong rental markets around the country. Technology has significantly transformed the way investors acquire and manage rental property portfolios. Coupled with radically evolved financing options, it’s easier than ever before to diversify investment portfolios and start building wealth and generating passive income through real estate.
Now to get to the really good stuff! We are currently experiencing a “perfect storm” if you will. The economic factors powering the SFR market really couldn’t get much better than where it is today making it a great opportunity for investors getting started or for current investors to expand their portfolios.
- The upcoming generation of potential homebuyers is more mobile and are significantly less likely to remain at one job or in one place for their entire career. The freedom of rentership allows less hassle and easier movement around the country.
- There is an overall demographic and psychological shift away from home ownership - there is no longer a stigma associated with renting, nor the idealization of home ownership as the “American dream”.
- Less people have savings for a down payment or qualify for mortgages as banks have gotten tougher since the recession making it harder to buy and easier to rent. Also, as home prices go up, it’s harder for first time homebuyers to compete.
- Building permit issuance are down substantially and demand continues to rise. Simple economics are in the favor of the landlord. Rents are spiking as a result of sinking supply and rising demand which means improved yields for investors and a decline in vacancy, therefore improving your bottom line.
All of these factors contribute to the substantial shift in SFR investor potential in the coming years, and we aim to provide the education and support for mom and pop investors to continue fueling this highly evolving asset class!