Updated: Jan 14
Interested to know why there's so much activity in the US residential real estate?
Here's a clue: It is connected with the market crash that happened. This crisis paved the way for the discovery of a financial vehicle that was never recognized before. Now, they use it as a business model that could be operated from an office in Wall Street or Silicon Valley. Big money has always & only ever been in the real estate industry through scaled commercial & multifamily above 200 units – traditionally considered economically viable for management efficiencies.
Want to know why they like residential homes as a new asset class? Because it's a productive asset that will always hold some permanent & practical value. What do we mean by that? Here's an example, gold is an asset that will always hold some inherent & utilitarian value – but is it a productive asset? No, because its value is relatively tied with the supply & demand of the people at that moment in time. We consider something as a productive asset only if it has the ability to yield income above its asset value. Therefore, those homes that are rented or occupied are considered productive residential assets. To be honest, most people don't want unproductive assets. Wall Street & Silicon Valley hate them.
Homeowners despise them too. I mean, who wouldn't? You need to pay a mortgage, taxes, utilities, and insurance regardless if someone is living there or not. You spend a lot of money on them, but you get nothing in return. But, some people see these "worthless" properties as opportunities!
Like real estate investors & wholesalers. Because it's an unproductive asset, it currently holds zero utilitarian value for the owner & therefore, they would likely sell the house fast and possibly leave money on the table when selling. The dead asset is actually a financial burden to the homeowner who wants to be rid of as fast as possible, and this can be an opportunity for your business to gather leads.