Why decide to invest now?

“You can be conventional, or you can be wealthy. You decide” - Dave Zook, The Real Asset Investor. 

Why Now? 

Confidence in uncertain times. For the sophisticated investor who is dissatisfied with the conventional way of investing, or the one who is weary of a future economic downturn, private real estate offers a way to build wealth that is not tied to the performance of the stock market. This creates incredible opportunities for investors to grow their wealth even in the midst of a fluctuating market.

Millennials and Baby Boomers. There are key social factors that drive the demand for private real estate in the multi-family category. For a variety of reasons, our nation's two largest demographic groups--millennials and baby boomers--are renting more often than owning. Additionally, a swelling immigration market continues to demand rental housing at nearly 50% of total population (http://www.jchs.harvard.edu/sites/default/files/ahr2011-3-demographics.pdf. Accessed October 1, 2018). Consequently, one-third of today’s households live in rental housing according to the U.S. Census Bureau’s latest Housing Vacancy survey. You can view this information at their website https://www.census.gov/housing/hvs/index.html. This is a massive surplus of renters.

This is great, but how do I invest? Ownership in private real estate, particularly in multi-family, holds a promising future for any investor who is looking to build long-term wealth. The only problem for most investors is the HOW. This asset class is not a secret. Many people are already generating tremendous wealth through multi-family investments, so competition can be stiff. Unfortunately, a quick search on Zillow and Redfin won’t offer you the quality deals you’re looking for to succeed in this market. For access to the best, most predictable deals, you will need a solid team with a strong track record who has a reliable presence in a current market. If you are looking to actively source your own deals then building relationships with key players in your market is the first step. If you are ready to place equity right now, then you do not have the time to become a key player in your market. Instead, look for a sponsor in the markets you are interested in investing who has been there for five years or more. It is likely that they are seeing the deals that most out of state or new investors are not seeing or at least seeing them first.