For whatever reason, the vast majority of real estate investors tend to be men. However, does this mean they are more skilled than women at real estate investing?
A study by U.C. Berkely found female investors outperformed male investors by approximately 1% per year.
There have been similar studies by a variety of institutions that confirm women are better than men at investing in stocks, bonds and mutual funds. However, are women better than men at real estate investing?
Before I offer my own opinion, let’s look at some real estate data:
Women make or influence 91% of home buying decisions.
Women control $20 trillion in consumer spending.
Mom’s represent a $2.4 trillion economy.
The data above is pretty compelling alone!
The population data is even more compelling.
Check out this Washington Post Data:
Regardless of if you are a house flipper or buy-and-hold landlord – you can benefit knowing that women make the majority of the decisions.
Here are some Key Traits of why I think Women are great real estate investors:
Women are much better at figuring out flow and use of space. I haven’t met many men who can figure out design and use of a space – especially when a significant amount of furniture is involved.
This might sound sexist but I believe women know more about function than men. They take into consideration details, like is cabinet space and extra closets. Any house can look functional without furniture. Women are much more adept at planning out the function of a space.
It’s ironic that I’m writing about this because I just met with a guy who buy’s all the old can’s of paint at Ace and Home Depot and just pours it all in a barrel together. He say’s it all is basically white.
Colors have a dramatic impact on a space that men rarely appreciate.
I know at least 2 house flippers who are guys who have taken out a bathroom and made it a bedroom! I’m sure you are surprised to learn that the house didn’t “flip” but instead “flopped”.
Bathrooms not only have to be functional but also have to be clean and updated.
My wife and I bought our first bath which was a 2 bedroom and 1 bath house. We will never again buy a house with just 1 bathroom. If something happens to the one and only toilet you have no options!
Again, this may sound sexist but if a woman doesn’t like the kitchen – she is probably not buying the house.
Kitchens are where the majority of guests spend their time. If you are an avid cook, like I am, you yourself spend quite a bit of time there. A kitchen has to have plenty of space and function.
Men are notoriously cheap. It’s worth noting that no man made my infamous list of the 15 worst real estate fixes of all time!
Quotes From My Female Real Estate Friends
I’m lucky enough to know quite a few female real estate investors.
I asked them why they think women are better real estate investors.
Below are there responses:
“Women oftentimes thrive when it comes to situations where ego can come into play. It’s like how they say women make better pilots—their ego doesn’t get in the way of making sound and rational decisions on a whim. It’s the same with real estate investing. There are a lot of opportunities where the ego can make brash decisions, and women tend to be much better at keeping at that ego in check!”
I wouldn’t say women are better, but we’re equally as good. 🙂I want more women to understand that investing isn’t just a man’s sport.
I don’t have any proof that women are better real estate investors than men, but I have read a couple of interesting studies on female CEO’s.One found that women CEOs in the Fortune 1000 drive three times the returns as S&P 500 enterprises run predominantly by men. It wasn’t even close – 226% better than the S&P 500.And the Credit Suisse gender 3000 showed that the return on equity for companies with women in more than 10% of key positions was 27% better than for those with less than 5 percent and the dividend payouts had a 42% higher ratio.Even Kevin O’Leary of Shark Tank says that the companies he invests in that are run my women outperform the ones run by men.So… better? I guess it depends on how you define better. 🙂
I don’t know if women better than men, but they are perfectly suited for this business. Women are already used to juggling multiple projects, staying on top of schedules, and meeting deadlines. They are good with people and are good negotiators. Those “life skills” make them great at real estate investing.
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