90% of Real Estate Investors Have Lost Money on an Investment
Monday, July 29th, 2024
Nearly all residential real estate investors (90%) have lost money on an investment, with nearly half (42%) reporting losing more money than they've made in real estate investing, according to new research from Clever Real Estate, a St. Louis-based real estate company.
Further, nearly half of investors (42%) have lost $200,000 or more on a single investment. Alarmingly, 45% admit a bad investment has almost ruined them financially, and 40% wish they never started investing in residential real estate in the first place.
A whopping 87% of residential rental investors have regrets about their investments. Common issues include dealing with bad tenants (51%) and severe property damage caused by tenants (52%).
About 4 out of 10 rental owners deal with maintenance issues (41%) or repairs (40%) at least once a week, and nearly two-thirds (63%) deal with complaints from neighbors about tenants at least once a month.
Additionally, 56% of respondents have had to evict a tenant at some point, and about 61% say they have to track down missed rent payments every month.
However, three-quarters (75%) say they are making at least as much as they did in 2023, with 41% earning more and only 14% earning less. Even more, 44% of investors wouldn't be able to live comfortably without their real estate income.
80% of residential real estate investors invest in more than one type of residential real estate investment, including traditional long-term rentals (51%), buying land for future development (45%), house-flipping (42%), and short-term or vacation rentals (40%).
Interestingly, about two-thirds of investors would consider properties with squatters (67%), foundation issues (65%), or at high risk of a natural disaster such as a flood, wildfire, or hurricane (62%).
The most pressing concerns for real estate investors are high interest rates (44%), high home prices (41%), and inflation (40%).
Read the full report at: http://www.listwithclever.com/research/residential-real-estate-investing-2024/