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Press Release

Jun 23, 2020 13:01 UTC

LendingHome Survey: Real Estate Investors Optimistic Despite COVID-19

SAN FRANCISCO--(Business Wire)--A majority of U.S. real estate investors who participated in a recent survey have an optimistic outlook about the strength of their business and the industry despite COVID-19. That is the topline finding of a survey of current, past, and prospective borrowers conducted by LendingHome, one of the nation’s largest financial lenders to real estate investors.

LendingHome’s survey focused on three segments of the industry: house flippers (who buy, renovate, and resell homes), landlords of single family rental homes, and real estate investment mortgage brokers. More than 600 respondents took part.

Of those who answered the question – “How long do you think the COVID-19 situation will affect your business?” – 80% thought the impact would be short-lived:

  • 42% answered “1-6 months”
  • 26% answered “7-12 months”
  • 12% answered “no impact”

When asked to rate how positive they were feeling about their business, using a scale of 1 (negative) to 5 (positive), 57% answered positively:

  • 29% selected a 4
  • 28% selected a 5

When asked to rate how positive they were feeling about the real estate industry, using a scale of 1 (negative) to 5 (positive), 55% answered positively:

  • 25% selected a 4
  • 30% selected a 5

“There was more optimism than we expected, and we were a bit surprised,” said Matt Humphrey, co-founder and CEO of LendingHome. “When we asked people to tell us how they were adapting, some folks said they were slowing their business as a precaution. Some said they had picked up the pace of home buying because there was less competition. Every corner of the U. S. had a different view on things. But overall, within the next year or less, people expect to be fully back in business, which was great to hear.”

Here are some direct quotes in reply to LendingHome’s question: “Have you adjusted your business strategies during this time?”

  • “No. Most Americans are working from home for the first time in their lives, and they realize their current home is not adequate for working from home and a change is needed.” ~ Texas Borrower
  • “Having well-qualified tenants (intimate understanding of their financial picture) in place with a 3 month deposit ready.” ~ Florida Borrower
  • “I am looking for properties that are quicker in and out, so smaller projects are my focus right now. But, I'm still seeing good offers on listings priced right and marketed well.” ~ California Borrower
  • “We had a very brief pause, then the market picked back up and is actually busier now than it was prior to quarantine. We have made adjustments to how we market and work with clients. The team has remained positive.” ~ Arizona Borrower
  • “No, we haven't changed anything. We just continue to run the numbers and make sure everything works out.” ~ Washington Borrower

For more information about LendingHome’s 30-year loans for rental properties, please visit lendinghome.com/rental. For more information about short-term loans for fix-and-flip properties, please visit lendinghome.com/bridge-loans.

About LendingHome:

LendingHome's built-from-scratch technology simplifies every stage of the loan process, ensuring easy financing for both novice and experienced real estate investors. In 2014, the company started with short-term mortgage loans and, by 2018, became the nation’s No. 1 lender to house flippers. In 2019, LendingHome started offering fixed- and adjustable-rate 30-year mortgages to landlords of single family rental homes. The company is headquartered in San Francisco with an office in Pittsburgh, Pa., and has funded more than $5.5 billion in loans to date. To learn more, go to www.lendinghome.com or www.lendinghome.com/careers. NMLS ID #1125207

Nora Murray
nora.murray@lendinghome.com

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