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Why Residential Real Estate Investing Trumps Commercial in 2014
 

Why Residential Real Estate Investing Trumps Commercial in 2014

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http://www.maverickinvestorgroup.com/ | When purchasing investment real estate, well-resourced investors often make the mistake of looking to buy commercial property instead of residential investment ...

http://www.maverickinvestorgroup.com/ | When purchasing investment real estate, well-resourced investors often make the mistake of looking to buy commercial property instead of residential investment property, reasoning that an apartment complex or other commercial property is a more scalable and profitable asset than single family rental properties. While this may seem logical, it is typically not the case in 2014, as market conditions created by the aftermath of the housing collapse have made investing in residential real estate a superior option. This presentation will discuss the many reasons for this.

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    Why Residential Real Estate Investing Trumps Commercial in 2014 Why Residential Real Estate Investing Trumps Commercial in 2014 Presentation Transcript

    • Why Residential Real Estate Investing Trumps Commercial in 2014 © Maverick Investor Group, LLC. All Rights Reserved.
    • OVERVIEW When purchasing investment real estate, well-resourced investors often make the mistake of looking to buy commercial property instead of residential investment property, reasoning that an apartment complex or other commercial property is a more scalable and profitable asset than single family rental properties. While this may seem logical, it is typically not the case in 2014, as market conditions created by the aftermath of the housing collapse have made investing in residential real estate a superior option. This presentation will discuss the many reasons for this. Maverick Investor Group assists individual real estate investors in purchasing turnkey residential investment property in the most advantageous markets. © Maverick Investor Group, LLC. All Rights Reserved.
    • A Booming Market After the crash, the residential real estate market is soaring back up, with home prices and buyer demand increasing rapidly. • In 2013, home prices increased in more than two-thirds of the 276 cities surveyed by Clear Capital. • Industry experts are predicting a strong year of growth in 2014. • Although prices are rising fast, many markets remain well below the peak prices of 2006 and also below the historical trend line, so ample upside potential remains. © Maverick Investor Group, LLC. All Rights Reserved.
    • Why Residential? At this unique historical moment, there are a number of advantages of residential investment property over commercial. • The aftermath of the housing meltdown has created a unique historical moment where investors can buy single family homes for less than builder replacement cost. • Due to the foreclosure crisis, many families with stable incomes have been displaced from their homes and thrust into the rental market. They prefer to rent SFHs rather than apartments so demand is rising fast. © Maverick Investor Group, LLC. All Rights Reserved.
    • The Big Players Agree Large institutional investors and REITs see the value of investing in single-family homes. Many of them--who have previously bought either exclusively commercial real estate or no real estate at all--are now buying single family rental properties for the first time and scooping them up by the thousands. Major private equity funds and other large investment firms such as Colony, Oaktree Capital, Och-Ziff Capital Management and Blackstone Group LP are buying more than $8 billion worth of houses in markets hit hard by the housing meltdown, according to Bloomberg. And this level of buying activity is single handedly helping to move markets and drive prices back up. Smart investors in the Maverick community have been buying in the path of growth and riding the wave. © Maverick Investor Group, LLC. All Rights Reserved.
    • Rental Demand Increasing The demand for rental property is increasing, creating a more reliable income stream for owners of single-family investment properties. • The percentage of people renting homes has increased to 35%, the highest percentage of renters since the mid-90s. • Vacancy rates for rentals are decreasing sharply, according to the Census Bureau. © Maverick Investor Group, LLC. All Rights Reserved.
    • Long Term Trends Also Support Residential Investment Medium and long-term trends point to the benefits of residential investment property. • Homeowners pushed out of their homes by foreclosure want to rent houses, not apartments, and this portion of the rental pool is continuing to increase. These people will need to remain in the rental market for quite some time as their credit is rebuilt. • Student loan debt is pushing Gen Y to put off buying homes, and increasingly making them unable to qualify for mortgages. This results in them remaining renters much longer, in need of rental properties. © Maverick Investor Group, LLC. All Rights Reserved.
    • Financial Flexibility When your property investment is tied up in a large piece of commercial real estate, your only options are sell or hold. With a more diversified portfolio that consists of multiple single family rental properties across a number of markets, you have both choices and hedges. You can: - Sell off properties when their prices rise enough, while retaining others for future sale. - Have multiple, diversified streams of income, incase some don’t perform as expected. © Maverick Investor Group, LLC. All Rights Reserved.
    • How Maverick Can Help Maverick Investor Group can assist you in identifying the right real estate investments for you by: • Analyzing real estate markets across the country to help you select the most advantageous one. • Inviting you to private buying opportunities for off-market turnkey properties. • Helping you identify performing rental properties that meet your buying criteria. • Introducing you to tax, legal and other professionals to help you with other aspects of your real estate investing strategy. © Maverick Investor Group, LLC. All Rights Reserved.
    • About Maverick Investor Group Maverick Investor Group is a real estate investment company that serves individual real estate investors exclusively. We introduce our clients to turnkey real estate with strong fundamentals that begin earning them cash flow on day one. Maverick thoroughly studies and continually monitors the real estate markets and provides regular updates on the various market conditions and investment strategies that are working in different areas. To learn more, visit us here:http://www.maverickinvestorgroup.com/. © Maverick Investor Group, LLC. All Rights Reserved.