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Some real estate investment experts call the younger generation of
millennial fix-and-flip real estate pros “flipsters,” a portmanteau of the terms
hipster and fix-and-flip investor. Indeed, these investors are young, hip,
trendy and tech-savvy, which is reflected in the way they run their businesses,
where they seek investment opportunities and what they look for in lenders.
Likewise, the Founders — as Generation Z is sometimes called — have
grown up in a gig economy where its commonplace to seek opportunities
where they can set their own hours, be their own bosses and rely on technology to stay connected, both at work and at play.
A career in real estate investing can provide all of this. Although this
generation may not be ready for investment careers yet, it is entirely likely
that many will follow in their older brothers’ and sisters’ footsteps, which
bodes well for originators ready to work with young investors.
Get flipster ready
Many members of the older generations may view millennials as
entitled or even lazy, but the cream of the crop of this generation
is willing to work as hard as anyone else to build a better life.
In addition, as digital natives, they are tech savvy, which
enables them to use a number of resources to identify and
analyze the most profitable properties. Originators would
do well to keep these facts in mind.
When it comes to building relationships, your job as a
loan originator sometimes begins even before prospects
have found a property they wish to purchase. If you
can deliver warm leads on hot properties to investment
clients, you’ll build trust and help ensure repeat business.
With this in mind, it’s important to know what
millennials look for in fix-and-flip properties. It should
come as no surprise that the traits they seek in homes
they want to purchase for themselves mirror what they
view as good investment properties.
In general, millennial homebuyers do not require the
same large homes that older generations have sought for
the past few decades. The same goes for millennial investors.
Millennial buyers and investors do seek open floor plans, however, that have plenty of space to entertain and flexible areas that
can change with a young family’s growing needs. A bonus room
that can begin as a children’s playroom, for example, but then evolve
into a family game room or a dedicated home theater, will appeal to
millennials, potentially raising a home’s value.
A Zillow study reports that many millennial homebuyers skip the starter
home in favor of a house that will meet their needs now and into the future.
Millennial investors likely will bring this bias into their flipping purchases
as well. This means they look for an updated kitchen with energy-efficient
appliances and the latest finishes, two or three full bathrooms, and smart-home technology such as integrated lighting. This generation knows what it
wants and is often unwilling to compromise.
When it comes to location, it is important to know that, contrary to popular perception, millennials aren’t all city-dwellers at heart. Only one-third of
millennial homeowners have settled in urban areas, while 47 percent prefer
Even those who live in suburban areas, however, seek many of the
amenities of urban life, such as a walkable downtown area and a close-knit
community. Good schools, nearby playgrounds and pools, and access to
city amenities via public transportation also are selling points for this
demographic, both for places to live as well as places to invest.