Real estate investors have been snatching up property as fast as it comes on the market, accounting for a record 18.4 percent of home sales late last year. You might have heard of a friend or neighbor who scored a cash deal above their asking price.
But just who are these people buying properties that way? And how can you get the attention of private real estate investors when it comes time for you to sell?
There are almost as many types of investors as there are types of property to buy. Let’s look at some common players in the real estate investing game.
1) Residential
When most people think of real estate investors, the rental property down the street comes to mind. And many investors are taking the buy-and-hold approach that allows them to earn rent money while they build equity. Others have gone the fix-and-flip route, taking an undervalued property, rehabbing it, and selling it for a higher price.
In both of these cases, the investor might connect with a seller through a real estate broker or wholesaler. But the competitive marketplace has also meant taking a more aggressive approach with mail, texts, and phone calls. These investors often have cash in hand to make an offer, and you can look here for more about picking the best one.
Most of these investments are made in single-family homes, but occasionally investors might go for small apartment complexes or other multi-family living spaces.
2) Land Developer
Some investors are looking for land deals rather than buying existing properties, particularly raw land that has nothing on it. This tends to be cheaper to invest in, and if they have the know-how and connections to develop it, it could be a good bargain.
Investors don’t always buy the land with the intent of building a new neighborhood or commercial space, though. They could also lease the land to farmers to use until the value goes up. Because there’s nothing but the land, the investor doesn’t have to spend money making repairs or updates while they wait to cash out.
Figuring out how to find private investors for land is similar to residential property as many investors work with agents, brokers, or wholesalers.
3) REIT and Institutional
The big players in the game are institutional investors like banks and real estate investment trusts or REITs. Some REITs are listed on the stock exchange, making it easy for individuals to get into the real estate market in a more passive way.
These investors tend to be the ones behind large commercial projects, entire neighborhood developments, or newer apartment buildings. As such, they tend to be negotiating deals themselves or working with commercial brokers to close deals.
Connect With Private Real Estate Investors
When you want to sell a house, raw land, or commercial real estate, private real estate investors have proven to be a reliable means to do so. You can connect with them through realtors, REITs, and wholesalers. But they might come knocking on your door as well with a cash offer in today’s market.
If you’re interested in learning more about real estate investors and investing in real estate, check out other articles on our site.