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56 INVESTMENT BILL GREEN CEO, Lending One As we look towards 2017, the real estate market is shifting for fix and flip and rental investors. In 2016, fix and flippers saw great opportunity in purchasing distressed properties, rehabbing, and selling them for a profit. e number of fix and flips in 2016 to date have increased from where they were this time last year. However, the market is changing, and the inventory of distressed properties available has started decreasing, causing the value of these homes to steadily rise. Newer investors may have a tougher time creating value in this shrinking market, but the more experienced investors will have better chances of profiting off these more expensive investments. ey have a greater net- work of contacts to help locate profitable deals in a short-supply market, and typically they will have built up more wealth to use towards pur- chasing these properties with higher price tags. For buy and hold investors, the rental market began to blossom into areas of great profitability during this past year. Rents have increased due to the demand for single-family rentals rising, and the national vacancy rate is only 7 percent. e tremendous boom the rental market has showcased is anticipated to continue into 2017. One reason for this could be the change in interest rates, which are expected to rise in the upcoming year. is will prompt buyers to rent instead, thereby decreasing the number of pur- chases and refinances. e millennials who are dealing with college debt can't afford to buy, so they need to rent. Additionally, the effects from the last housing crash are still felt by people not able to qualify for mortgages as easily as before, so they turn to renting. e more experienced rental investors will recognize these changes and understand how to capitalize on this growing market of opportunities. For private lenders, we anticipate more borrowers will seek financing to adapt to these changing market conditions so they can remain profitable. We anticipate the shift to be from the smaller "mom and pop" type investors to more experienced ones. Even if the rates were to rise, experienced borrowers who still utilize debt will only see marginal impacts to their home sales and levels of profitability in 2017. INVESTMENT KURT CARLTON Founder, New Western Aquisition In the years following the 2008 Recession, the recovery of the market has prompted institutional investors to emerge as catalysts for market growth. e notable impact and efficiency of investment institutions lead us to believe they have tapped into what is proving to be an increasingly lucrative asset: e single-family rental home. e rental market has rebounded in a big way since the Recession, and the purchase, reno- vation, and leasing of property to meet existing demand has been beneficial. e U.S. Census Bureau documented a renter increase by 9 mil- lion households between 2005 and 2015—an unprecedented rise. Without an adequate supply, this demand continues to surge, and resulting market predictions anticipate the 2010s to make history as the strongest decade of renter growth ever recorded. e largest investment institutions, such as Blackstone's Invitation Homes and American Homes 4 Rent, control a significant amount of financial assets in the United States and, natu- rally, have market influence across the board. According to the American Housing Survey, the majority of rentals, upwards of 14 million or one-third of the entire U.S rental hous- ing stock, are renter-occupied single-family properties. Institutional investors, however, remain a minority in the market and account for only 2.6 percent of all single-family home purchases. In many areas of the country, home values remain depressed and rental demand continues to rise. is growing imbalance of supply and demand resulted in a tilted market with little options for consumers. Such circumstances translate into opportunity, and institutions be- gan purchasing foreclosed, distressed properties around the country in the hopes of managing a turnkey investment. New Western has played a leading role in supplying property for such ventures by providing access to thousands of single-family properties to serve as rentals, and, therefore, enable investors to earn steady returns through passive, long-term renting strategies. e careful procurement of properties is essential, and would altogether be impossible without knowledgeable and sophisticated acqui- sition firms. Taking into account the importance of property acquisitions in a challenging rental market, we have fixed our eyes upon paving the way toward market growth. We work hard to stand out within the realm of real estate acquisi- tions, and through our development and appli- cation of patent-pending technology, resources, and user-friendly interfaces, we have done so. At the core of our contribution to the future of real estate is our dedication to specialized data and cutting-edge technology. We are work- ing with the current state of the rental market to provide homeowners and investors, alike, a viable option to succeed and benefit. e speed and simplicity of our resources and the proper- EXPERT OPINION "The tremendous boom the rental market has showcased is anticipated to continue into 2017." –BILL GREEN EXPERT OPINION "Institutional investors, however, remain a minority in the market and account for only 2.6 percent of all single-family home purchases." –KURT CARLTON