Visio Survey Points to Strengthening Real Estate Investment Market

By: Tony Zerucha, Bankless Times

In a recent Bankless Times article, Jeff Ball explains the shift to technology in the lending industry, the changing investor market and the differences between various types of financing in the space.

Historically mortgage lending has involved several people, such as processors, underwriters, and closers, not to mention plenty of paperwork. Now, tech is making the process quicker and easier.

“It was ripe for updating,” Ball said. “People began bringing increasing amounts of customization and process automation.”

Additionally, more institutions are becoming involved in the space, including banks, hedge funds and accredited investors, with marked differences between them.

“Bank capital is the least expensive but the most restrictive,” Ball explained. “Hedge fund capital is more expensive but less restrictive while also being highly scalable. Accredited investors are in between. They are less expensive than hedge funds and more expensive than banks.”

However investors are getting financing, they are definitely remaining active, with Visio's survey finding that half of respondents plan to buy at least four properties in 2015, twice as many as the rate in 2014. Additionally, many are looking to make investing a full time job.

“Eighty-three percent of our part-time investors expressed interest in going full time,” Ball said. “Ninety percent of our full-time investors are looking to accelerate their businesses too.”

To read the full article, click here.