Velocity
WIN

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Drive your business with real insights.

Learn how to find and meet the needs of independent real estate investors and small business owners.

What drives real estate investors? How and where to they find potential investment properties? What resources do they use to make investment decisions? What do they expect from mortgage brokers and finance companies?

If you’re a mortgage broker seeking to grow your business by offering financing for residential investment properties and small commercial buildings, knowing the answers to these questions is paramount to your success.

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WIN Key Findings

Independent mortgage broker

Velocity investors overwhelmingly prefer to work with an independent mortgage broker.

Velocity investors are nearly two times more likely to work with an independent mortgage broker to obtain financing for residential investment and small commercial properties than other investors who prefer a large bank.

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Velocity investors rank cash flow as #1 consideration for investment properties.

Cash flow, location, cost and potential appreciation are top considerations.

It’s no secret that location and cost are two of the most important considerations when purchasing any type of property. However, when it comes to investment properties, you also need to understand the importance of cash flow.

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Single-family homes are the most popular investment property

Single-family homes are the most popular type of investment property.

Investors who purchase single-family homes as an investment outnumber the second most popular investment property — condominiums — by nearly three to one.

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Velocity investors buy more small apartments, multi-family and small commercial.

Velocity investors purchase more small apartments, multi-family and small commercial buildings.

Velocity investors have a significantly higher incidence in purchasing a small apartment, multi-family or small commercial buildings.

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Velocity investors purchase multiple properties

Independent real estate investors purchase multiple properties.

Servicing real estate investors provides an opportunity for repeat business since the typical investor often owns several investment properties.

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Interest rates and certainty to close are important to investors.

Interest rates and certainty to close are most important to investors.

Interest rates are the most important factor when investors consider a mortgage loan. However, other factors like certainty to close, a flexible term and cash flow become important for investors who don’t qualify for a traditional bank loan.

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Real Estate Auction

Velocity investors utilize auctions, other investors and mortgage brokers more when searching for investment properties.

Velocity investors are twice as likely to utilize real estate auctions, nearly five times more likely to use other real estate investors, and almost three times more likely to use a mortgage broker to find investment properties.

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Velocity investors rely on friends and other investors for info.

Velocity investors rely on friends, associates and other real estate investors.

Velocity investors are twice as likely to ask a friend or associate and three times more likely to ask other real estate investors for a recommendation when researching lenders for investment property loans.

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Using a real estate agent is popular.

Using a real estate agent is the most popular way of finding investment properties.

While six out of ten independent real estate investors rely upon the assistance of a real estate agent when they’re looking for investment properties, age plays a significant role in the choice of other methods used.

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Being flexible, easy and fast wins.

Being flexible, easy and fast will win you more investors.

If your goal is to attract independent real estate investors and small business owners, your sales strategy and messaging should focus on flexible underwriting, ease of qualification, and a shorter time to close.

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Brokers

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Borrowers

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