Women Investing in Real Estate

I love real estate. I love the power of building community and of having the opportunity to enhance people’s lives through their surroundings. As a securities attorney I know first-hand that many women are so busy with their professional careers and their jobs as moms and caretakers they forget that their money can grow and multiply if invested properly. I love the opportunity I have as a real estate sponsor and syndicator to help women invest wisely thereby freeing up their time to work less and enjoy the things they love to do and be with the people they love most. Investing wisely allows you to free up TIME and time is the most important commodity we have. As a professional woman you are smart enough to know that you need to save money for a rainy day or just for those moments you want to enjoy. The question you may be asking: What is the best way to do that?  The stock market can be too risky and needs to be monitored very closely and understood in ways that require full attention. But in today’s market investing in hard assets like real estate can really increase your returns in a meaningful way.  Becoming a limited partner (aka LP) in real estate investment deals will increase your yearly returns in significant ways. Research shows that women real estate investors actually take more time to understand and investigate the deals we enter into. Time, your most precious commodity, will free up as your portfolio grows and yet not enough women are entering into the world of real estate investing, why is that?

 

Women’s Real Estate Investors Network

Women network and connect in a myriad of ways and the women’s real estate network is no different.  Going back in time it is easy to see that women have been involved in the world of real estate in some form or another since its humble beginnings in the late 1700’s and its establishment as a business practice in the mid 1840’s. Although women filled office roles at the beginning, by the late 1800s, they began to assume positions as brokers and agents. Today, while still in the minority, women are becoming wealthy in this market. Dottie Herman is one of the richest self-made women in America as the CEO of Douglas Elliman, a renowned real estate company. Last year she led her team to sell more than $27 billion in real estate.[1] Currently, women dominate the field of real estate in terms of serving in agent positions: about 62 percent of all certified realtors across the country are women.[2] Agents are important figures in the real estate market and it’s clear that women are dominating these roles, but where are women in the role of investor?

 

The Value of becoming a Limited Partner in a Real Estate Deal

Investing in real estate is a great way to diversify your investment portfolio, generate passive income, and increase your returns. Investopedia states that “real estate is also attractive when compared with more-traditional sources of income return. This asset class typically trades at a yield premium to U.S. Treasuries and is especially attractive in an environment where Treasury rates are low.”[3] These benefits create a strong draw to investing, yet despite the draw, the numbers of women real estate investors is quite low compared to the number of female agents and brokers-a sign that women are only venturing into this asset class slowly and tentatively.  According to the National Association of Realtors, “women brokers dominate the residential real estate market, but have yet to make a major entrance into the more lucrative market,” aka investing.[4] Additionally, current research suggests that around 30% of property investors in the United States are women.[5] While this statistic shows that some gender disparity exists, it is also clear that increasing numbers of women are finding success as professional investors, both as general partners and limited partners and this shift is rapidly changing the field of real estate investing for the good.

 

Great Investor According to Forbes: Women!

Women make great investors across the board. According to Forbes, “studies show that women spend more time researching their investment choices. While they do take on less risk than men when it comes to investing, that doesn’t mean they are risk averse-rather, they’re simply more likely to take on appropriate levels of risk with their investments than men.”[6] Analyzing and comparing choices before making a decision is a part of the critical and strategic thinking that is crucial in this market.

In a study conducted by Fidelity, statistics displayed that women investors consistently outperformed their counterparts of the opposite sex, resulting in leaving them with much more money at retirement.[7] This survey was conducted among a demographically representative U.S. sample of 2,995 adults comprising 1,496 men and 1,499 women 18 years of age and older. The survey was completed during the period December 1-11, 2016 by ORC International, an independent research firm. The study also revealed that women tend to save more and that they often earn higher returns. Women have also displayed that they are a bit more patient in their trading: Fidelity’s client data revealed that men are 35 percent more likely to make trades than women. Furthermore, men who trade made an average of 55 percent more trades in 2016 than their female counterparts.[8]

When it comes more specifically to real estate investments, experts in the industry are paying attention to what makes women particularly successful as property investors. They are noting strengths like careful market research, low-risk property choices, and a willingness to commit long-term.[9] These qualities are what make women great investors in the real estate market: female success in this field is a reality.

 

Notable Women in the Field of Real Estate Investing

Women have been paving the way in the industry with many successful figures coming forth to shine as superstars in the field. Here are just a few female powerhouse investors you may want to know about:

  1. Annie Dickerson

As the COO of Goodegg Investments, Annie stumbled upon property syndications after seeing great returns and thus started her own investing firm. She currently holds a position on the Forbes Real Estate Council and also hosts a weekly podcast called “Investing for Good.”

  1. P.E. Barnes

She’s done it all: from flipping to landlording to multifamily properties, P.E. is a notable agent and investor paving the way in her field. She also authored a book, “Real Estate and Chill,” which is worth the read if you are interested in real estate and investment matters.

  1. Alexis Lee

Alexis is an investor, developer, landlord, and property rehab expert from the great city of Atlanta. Her career began with rehabbing foreclosure properties and she continues to be well-known in the field for her work.

 

Fidelity Study shows only 29% of Women are Investors

According to a study conducted in 2018 by Fidelity Investments, only 29% of women see themselves as investors, and less than one in four women are comfortable with their knowledge of investing.[10] This study shows not a lack of capability, but a lack of personal confidence in one’s one abilities and personal knowledge in investing. The key to shifting this narrative is putting an emphasis on education and realizing that there is no better time than now to start investing in this fast-growing real estate market. Investing in real estate does not require a specialized education or degree: anyone can invest. A little knowledge goes a long way, and a great place to start in educating yourself is by reading books, blogs, and articles, and listening to relevant news and podcasts to expand your knowledge of the field. One resource will lead to another as you find yourself beginning to become more interested in learning more and diving into real estate investing!

 

Passive Investments

It is also important to understand that real estate can also be a passive investment. According to Investopedia, passive investing is “an investment strategy to maximize returns by minimizing buying and selling. It also refers to a buy-and-hold portfolio strategy for long-term investment horizons, with minimal trading in the market. [11]] There is a lot of value in this type of investing, and we can help in your efforts and goals!

 

About Atara Twersky

Atara Twersky, is a real estate owner, sponsor and syndicator.  She is principal and founder at Ascendo Capital LLC.  Atara is also an attorney in NYC and  the bestselling author of the children’s book series, Curlee Girlee, inspired by her own young curly haired daughter  Atara is the host of a popular Real Estate podcast to help women understand their Real Estate Investments options so they can be informed investors.  For more information on Real Estate investment listen to Atara’s podcast Bridging the Gap: Real Estate for Women.


[1] https://c-suitenetwork.com/tv/video/dottie-herman-richest-self-made-woman-real-estate-reveals-overcame-childhood-trauma-turned-pain-power/

[2] https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

[3] https://www.investopedia.com/mortgage/real-estate-investing-guide/

[4] https://www.nar.realtor/women-in-real-estate

[5] https://www.realpropertymgt.com/expert-tips/changing-the-shape-of-real-estate-investing-the-emerging-force-of-women#:~:text=are%20coming%20down.-,Finding%20Success,that%20gap%20is%20rapidly%20closing.

[6] https://www.forbes.com/advisor/investing/woman-better-investors/

[7] https://www.fidelity.com/about-fidelity/individual-investing/better-investor-men-or-women/

[8] https://www.fidelity.com/about-fidelity/individual-investing/better-investor-men-or-women/

[9] https://www.realpropertymgt.com/expert-tips/changing-the-shape-of-real-estate-investing-the-emerging-force-of-women#:~:text=are%20coming%20down.-,Finding%20Success,that%20gap%20is%20rapidly%20closing.

[10] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/about-fidelity/WomenandInvestingStudy_FactSheet.pdf

[11] https://www.investopedia.com/terms/p/passiveinvesting.asp