Think-Realty-Magazine-July-August-2016

FINAL THOUGHTS

STATE OF THE INDUSTRY

Unnecessary Gaps Real estate investing continues to experience gender and age gaps. By addressing this persistent trend, we can make our industry stronger.

s the President of Affinity Enter- prise Group, I am in a unique po-

With the availability of private capital today, that does not need to be such a concern. What is required is more widespread education for this and all age groups about how to leverage assets and where to find pools of private capital. Though Millennials as a rule are not investing today—or in many cases not even purchasing their own residences, that trend will turn around, and they too will need insight into how best to grow their wealth. As noted in a report by the National Associa- tion of Realtors on its website, www.realtor.org: “Even though the share of first-time buyers has fallen to its lowest level since 1987, young adults in general are more mobile than older households. The return of first-time buyers to normal levels will eventually take place in upcoming years as those living with their parents are likely to form households of their own first as renters and then eventually as homeowners.” It’s understandable that individuals—whatever their age or gender—may be fearful of investing, but we can help them overcome that barrier to entry. It is both within our ability and is our respon- sibility as savvy investors and industry leaders to reach back and help others become successful, thereby ensuring diversity among our ranks. Create footprints that can be followed, and let’s pay special attention to women and the younger generation who are looking to find success in investing. I am not suggesting we show favoritism, or even reverse discrimination, but merely a helping hand and support for those those deserving individuals within these gaps. By giving them the attention and recognition they deserve, we also will be helping our industry as a whole become stronger, more profes- sional and more enduring. •

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sition to see interesting trends emerge as I look over the more than 60 companies under our company’s umbrella. In watching one of our newer brands, Think Realty, I have noticed two major gaps in particular in the mar- ketplace of real estate investors. The gender and age gaps are evident across all sectors—from single-family to multifamily and commercial— and they are unnecessarily persistent. As documented in the 2012 report “The Invalu- able Investor” (by RealTrends and Personal Real Estate Investor Magazine, and sponsored by Home Depot and other major vendors): “Rarely do you see a business market so strongly dominated by one demographic. Most investors are male (75%) and white. They are spread across age groups, but more clustered in the 40- to 59-year-old age groups (58%). Non-investors are similarly spread in age, but they are about 50%/50% split men and women, but remain strongly white (67%).” Four years later, change has happened only slowly and on a small scale. I do see shining stars such as Kathy Fettke (Real Wealth Network), Jilliene Helman (Realty Mogul) and Hilda Lunderstedt (Wealth Migrate) and others making themselves known in the still-male-dominated space. But their numbers are few and far between. Likewise, there is a continuing dominance in real estate investing, as in so many industries, by those in the 45+ age group. Perhaps this is due to their access to disposable income or their ability to leverage a 401(k) or other equitable assets. Still, many studies also indicate this age group’s decision-making is influenced by these investors’ experiences of growing up in a recession.

EDDIE WILSON, PRESIDENT

130 | think realty magazine july :: august 2016

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