Context with Mike DelPrete Scott Trench: Power of Mom-and-Pop Investors
6 snips
Feb 12, 2024 
Scott Trench and Mike DelPrete discuss the U.S. rental market, mom-and-pop investors, the benefits of house hacking, and opportunities for investor-friendly agents. They dive into debunking myths about institutional investors, the wealth potential of real estate for ordinary investors, and strategies for building wealth through real estate investments.
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Mom-and-Pop Investor Dominance
- Mom-and-pop investors dominate the single-family rental market, owning 90% of properties.
- Institutions own less than 3%, contrary to popular belief.
Market Shift in 2023
- Institutional investors became net sellers in early 2023, while mom-and-pop investors continued buying.
- Transaction volumes slowed for all investors due to interest rate changes and tax implications.
Long-Term Wealth Creation
- Real estate wealth creation is driven by ordinary Americans holding properties for decades.
- This long-term approach, not institutional investment, fuels market stability.