Investor Business Will Grow

Liniger: ‘Investor Business Will Grow’ 

INDUSTRY INSIGHT: Dave Liniger’s column appears in the September edition of DS News.
Investors will represent a growing portion of the U.S. residential market for the next several years, Dave Liniger says in the September edition of DS News.

In his bimonthly “Ground Forces” column in the default-servicing magazine, the RE/MAX Chairman and Co-Founder encourages agents to learn how to connect with and service investors. An excerpt from the essay, which is available as a PDF download on Mainstreet:

“Over the past year, investors have accounted for about a fifth of the country’s closed residential transactions, according to the monthly surveys by Campbell Communications. Aside from a dip in late 2009 in anticipation of the tax credit expiration (before its extension and expansion), the investor slice of the buyer pie has stayed around 18 percent.

“With the tax credit gone, it’s a virtual certainty that first-time buyers will no longer account for more than 42 percent of closed transactions, a level they’ve topped for a year in the Campbell analyses. And current homeowners, given the challenge of selling their own homes, are unlikely to move much higher from their spot in the high 30s. But what about investors?

“The term ‘investor’ covers a broad spectrum, of course, from an individual entrepreneur buying several homes in his community to a private equity fund purchasing REOs in bulk to turn and flip for a small profit. Although many investors are biding their time – expecting prices to drop even further or finding better returns in alternate asset classes  others are buying now, seeing tremendous cash-flow potential in REOs and distressed properties they can get at deep discounts.

” … Smart real estate agents – especially in areas where owner/occupant activity has pulled way back – are reaching out to help investors find and purchase income-generating properties. Some of these agents, especially in the REO arena, have solid investor relationships that go back years and involve many transactions. Others are relatively new to this type of buyer, who acts on analysis rather than emotion. As with anything, the key is education.”

To complement the DS News column. Liniger also presented his investor insights in a Dave’s Blog posting Sept. 12. And here’s a link to a DS News column from July.

Presence at Five Star Conference
Liniger will give the opening remarks at the 2010 Five Star Default Servicing Conference and Expo, which kicks off Sunday, Sept. 19, in Dallas. He will share insights on the role distressed properties play in the real estate industry. Liniger will also introduce keynote speaker former First Lady Laura Bush, wife of former U.S. President George W. Bush. 

RE/MAX will have a visible presence at the conference; Karen Pancost, RE/MAX Director of REO, will be on hand at a RE/MAX booth and Shaun White, RE/MAX Vice President of Corporate Communications, will participate in a panel discussion on social media.

© 2010 RE/MAX, LLC. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.


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