By far, independent real estate investors choose to work with a real estate agent when looking for investment properties.  Our research found that more than six out of ten investors rely upon the assistance of a real estate agent to help them find properties with investment potential.  However, age plays an important role in the adoption of other methods.

QUESTION: How do you usually find investment properties?

BASE: Under Age 55 (N=70). Age 55+ (N=117). Values indicate the percentage of total investors surveyed in each sample.

Younger investors have a significantly higher incidence in the use of online real estate listing sites.  Investors under the age of 55 are 38 percent more likely to engage with online real estate listing sites and 33 percent more likely to use an Internet search engine when looking for investment properties. 

In contrast, older investors have a higher incidence of using a real estate auction and/or a friend or associate to find investment properties.  Investors over the age of 55 are 67 percent more likely to utilize real estate auctions and 20 percent more likely to consult with a friend or associate when looking for investment properties.

Implications

Obviously, mortgage brokers who nurture relationships with real estate agents that specialize in investment properties is the best way of attracting business from independent real estate investors. When dealing with older investors, focus on obtaining referral business from existing clients or by attending, assisting or sponsoring real estate auctions.  If the goal is to reach younger investors, consider the use of locally based paid search advertising (text and/or display ads) in search ads or sponsorships of online listing sites.