According to The Iceberg Report, the most comprehensive study of the single family residential investment industry ever done, 67.3% of real estate investors primarily focus on buy and hold properties. Contrarily, only 8.5% of real estate investors focus on wholesaling properties. Here’s more data from The Iceberg Report on how the two types of investors work together to thrive and how buy and hold investors approach wholesale properties:
How many buy and hold investors are buying their properties from wholesalers and where else are they finding properties?
- Buying from Wholesalers- 21%
- Investor sites such as Roofstock- 11%
- Using real estate agents to find properties- 23%
- Auctions- 18%
- Internet listings- 18%
What are buy and hold investor preferences about tenants when purchasing properties?
- Vacant- 43%
- Tenanted- 8%
- No preference- 49%
How do buy and hold investors typically pay for wholesale properties?
- Close with permanent financing- 39%
- Close with short-term loan, plan for refinancing- 33%
- Close with short-term loan with conversion option- 10%
- Other- 18%