At homebldr, we are on a mission to revolutionize the relationship between residential real estate professionals and residential real estate investors. Historically, investors have been a difficult client base for real estate professionals due to their frequent requests for deal analysis, desire to work with multiple agents at the same time, and prolonged hesitation to get into deals regardless of how much work their agent has put in. However, the benefit of being patient and continuing to work with investors is that they typically transact multiple times per year while owner-occupant clients move once every seven years (on average).
Shifting focus to the present, home sales just hit the lowest level in a decade. Meanwhile, investor transactions, relative to owner-occupant transactions, remain near the all-time high level achieved in 2022. While 90% of owner-occupant homeowners are locked into their sub-6% mortgage and are transacting at record low levels, investor activity is high and increasing. This presents a massive opportunity for real estate professionals to generate more transactions by serving the growing community of investors.
On the other side of this two-sided problem, residential real estate has become one of the top investment strategies over the last decade. As the community of residential real estate investors has ballooned over the last 5 years, the average return-on-investment (ROI) has plummeted. Fix & flip investments as a percentage of overall home sales increased from 5.5% in 2017 to 8.4% in 2022. Over that same timeframe, the average gross ROI of fix & flip investments decreased from 46% to 28%. In other words, as more investors have shifted focus towards residential real estate, a lack of experience and resources, in addition to increased competition, has made it difficult for investors to maximize their returns.
Through our suite of real estate technology solutions, homebldr identifies high-quality investment opportunities, streamlines deal analysis, provides financing and construction services, and ultimately maximizes returns for both real estate professionals and investors. In addition to enabling real estate professionals to generate more transactions by better serving investor clients, homebldr is helping investors maximize the return-on-investment of residential real estate investments.