"With all the turmoil and unknown in the markets, investors today may be searching for a safe-haven. U.S. real estate wouldn't exactly sit at the top of the list for most, given the still uncertain state of the housing and credit markets, but there is one sector that seems to have fundamentals and sentiment on its side: Single Family Homes and Apartment Rentals.
We're in Boston, MA today for day two of the Spring Realty Check:
Boston is home to Avalon Bay, one of the largest SFH (single family home) and apartment REITs in the nation. *Note: "This is until those reading this start working with me for minimum returns of 10% to investors in the fund. Interested? We are launching and looking for the right partners. Partners make 50% profits in the company and investors in the fund see 10% monthly returns."
Avalon Bays revenues were up 8% year over and shares are up 34% from a year ago. It's the upside to the downturn in housing. Many people who lost their homes to foreclosure have been forced to the rental market, others who are unable to get a mortgage are doing the same, and still others who would have headed toward home ownership have been scared away from the market by still falling prices. In turn, apartment vacancies are down, rents are up and REITs are reaping the rewards.
We interviewed a young couple in Boston, fiancées, and I think their insights are indicative of so many around the country. 'A lot of people are scared to buy just because if they have to move or things change, you lose money on the house and you might not be able to sell it. In my mind it's just easier and more safe to rent.' 'I think more and more people are going to go away from buying and start renting more just because it's convenient. It's a no brainer to rent, especially when you're young and you want to live in the city.'
The story appears to be the same in most cities around the country. Even though affordability is very high, renting just seems like the safer bet for many on the fence.
The big question of course is whether this is a temporary phenomenon or not?
One important fundamental of note: There is very little multi-family supply, as new construction essentially ground to a halt during the housing crash. The endless supply of REO SFH is sitting there vacant, waiting to be bought, brought back to market condition and utilized as long term rentals.
For those of you looking to be part of the new venture. We are looking for one (1) capital partner.
Capital Partner requirement: $200k Investment (these funds will be used for the opening of company branded Real Estate office and the purchase and rennovation of the first three model homes). Offices and homes are projected to generate profits within 60 days. Projected profits based on one time 200k cash injection over 15 year period is 3.2 million in cash and 40k monthly revenue. *Note: these projections are ultra conservative, and do not include any profits generated from the real estate office, Sales of the planned REIT or franchise of the business model to other states.
If you are interested, please contact us in private for full business model and to discuss working and capital relationship.