RentRange published a breakdown of investor types for the top 10 states with the most investment properties, which nicely illustrates how numerous smaller investors are in the real estate market and just how many houses they own.
According to this data, in just these 10 states alone, there are 828,844 owners of 2-4 units, which means that at an average of three properties each, this group of investors owns nearly 2.5 million houses, which is about 18% of the 14 million rental houses in the U.S. and dwarfs what the institutional investors own. There are an additional 75,355 owners of between five and 10 units, resulting in over 900,000 residential investors owning 2-10 houses each in just these 10 states.
This class of residential investors has been underserved by traditional financing sources. If you own thousands of properties, you get the attention of Wall Street. If you own hundreds, institutional investors will ring your doorbell. But if you own a few dozen or less, every acquisition is a financing adventure.
We recognize the value and vast amount of market share represented by investors who own under 100 homes, whether it be two or 20 or 90. These owners are not only the main bulk of residential investors in the country, confirmed by both RentRange and our individual survey, but are also the ones who are driving the economy and, as we like to say, turning properties into possibilities. We understand the unique needs of these types of investors, which is why we've created loans exclusively for them, based on property values, not credit, and backed by years of residential real estate knowledge.