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Publisher Andrew Waite explains HVA’s role in developing long-term investor relationships
By Ken Channell
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| Ken Channell |
When Andrew Waite, publisher of The Personal Real Estate Investor magazine, spoke to the Leadership Invitational in Lake Tahoe he presented some interesting information about opportunities for franchisees to help long-term investors make successful investments in residential real estate.
In presenting the findings from his March 2008 study, "The Invaluable Investor: How to Serve the $300 Billion and Growing Market for Individual Residential Real Estate Investors," Waite created a profile of the long-term investor and explained how HVA can recruit and develop professionals who want to invest. His findings included:
- 89 percent of total market is looking to justify their investment in any home purchase.
- 22 percent of the total residential market represented “intentional investments” and was looking for a seamless buy at a decent price, to hold and generate portfolio growth from positive cash flow and appreciation.
- Less than five percent are independent investors and less than two percent have a “flip mentality.”
- 18 percent of the U.S. residential market or $55.8 billion dollars of investment is looking for formal real estate guidance and hands-on help to buy and hold residential real estate.
Waite reported that these investors represent a market of $320 billion, and that REIA and declared investors are less than five percent of the market. The majority of the market, he said, can be described as:
- Hands off management
- Relationship with their real estate provider
- Multiple Properties or assets = lower risk
- Focused on growing profits
- Expect Analysis / reports / monitoring of their portfolio.
Based on this information, 95 percent of the existing investment market wants more help than currently provided by the traditional real estate educators that sell process and not profit.
This creates an opportunity for HVA to provide a full cycle service to these investors. Waite says that the real estate portfolio management cycle has nine steps to produce success for this type of investor:
- Investor goal assessment
- Legal structure for the client
- Find the property
- Analyze the property
- Finance and acquire the property
- Arrange for property management
- Portfolio monitoring
- Reporting
- Compliance
- Re-leverage the portfolio
This creates a tremendous opportunity for Team HVA, which has bought more houses than any other system ever created and is in the best position to take advantage of this opportunity.
If you have not read "The Invaluable Investor" and you have not subscribed to The Personal Real Estate Investor magazine, I recommend you do that today. Click here for more information on personalrealestateinvestormag.com.
Working with long-term investors is a major emphasis of this year’s annual convention in Las Vegas -- make plans now to attend.
. . . Ken Channell is vice president of team development. He can be reached at Ken.Channell@homevestors.com.
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