Wednesday, September 21, 2011

Investors in Rental Properties Transforming Neighborhoods


The contributions of small real estate investors to communities are often overlooked. In fact among the general public many misperceptions exist. Some think of investors in rental properties as harming neighborhoods even as slum landlords harming tenants.
The opposite is true. Turning a distressed property, be it condo, townhouse or single family home, into a renovated rental property has big benefits for any community. As empty homes are reclaimed and rented, neighborhoods improve, prices rise, and the perception of the neighborhood as a good place to live and raise a family rebounds. Over the years this has proven true in inner city areas from Savannah, Georgia to Capitol Hill. And it is small investors working property by property – not the fat cats – who have began these grass roots transformations.
And how do small investors benefit renters in the Northern Virginia area? They provide nice affordable homes for individuals and families including: recent graduates starting their first job, professional consultants in the area for short term work, older people transitioning from larger homes, and families who have been foreclosed on and need a new start in life.  
In his excellent article, The Value of Real Estate Investors to a Community, Peter Giardini lists six contributions real estate investors make to local communities. Be sure to read this great post. (http://www.biggerpockets.com/renewsblog/2011/09/16/value-contributions-real-estate-investors-community) He encourages real estate investors to publicize these benefits.
Why does it matter? At the moment the administration is considering plans to lend money only to huge real estate investors, excluding the small investors.  We need to explain why the small real estate investor also needs access to capital so that we can continue to play our unique role in transforming neighborhoods and helping individuals and communities rebound.

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