Small real estate investors should be very proud of themselves. They are the purest form of real estate investor. They’re not waylaid generating acquisition, asset management, property management, or brokerage fees. Their single exclusive focus is appreciation. That’s why most small real estate investors (who know what they’re doing) outperform the big institutional real estate investor.

That said, small investors may buy the same type of real estate as the large investor, but there is no competition as to size. Smaller properties compete just as smaller cars compete against larger cars, etc. Each one has a good news/bad news balance sheet and there’s a market for both.