June 11, 2019
A survey by Portland-based RealCrowd reveals 80% of respondents are planning to invest in value-add real estate as part of their wealth management strategy. The survey also found that 47% of respondents’ desire to allocate more than 25% of their investment portfolio to commercial real estate.
“Savvy real estate investors recognize the huge upside to investing directly in properties that have a value-add component,” says Adam Hooper, co-founder and CEO of RealCrowd. “As investors look to increase real estate allocations as part of their overall strategies, they’re seeking outsized returns compared to other asset classes, and in a high percentage of transactions today, that return comes from value-add investments—often in secondary markets where there are more opportunities and less institutional competition.”
Another interesting finding of the survey was that 72% of respondents seek transactions in secondary markets, while 64% say they have no regional preference for their investments. The survey also revealed that 49% of respondents are seeking opportunistic real estate investments, while 34% prefer core properties. The top asset class they are most interested in investing is multifamily, followed by industrial as the second most popular, and then funds, office, hospitality, and retail.
The shift toward online investing was reflected in the survey, too. The results showed that 79% invest in direct real estate through an online platform like RealCrowd.
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