The not-so-far-fetched science-fiction series, Wisdom of the Crowd exploits the most sensational benefits of real-time crowdsourcing platforms like RealtyeVest and draws parallels to the ridiculous, cringe-worthy fantasy world of The Circle, starring Tom Hanks and Emma Watson. In an industry like online real estate crowdfunding, where privacy can cost thousands upon thousands of dollars, the notion of people willingly relinquishing their data to go wild goose chasing and risking their lives seems contradictory of the ongoing battle for online privacy battles fought by men like Edward Snowden and backed by the majority of the nation. (And, frankly, the idea sounds a bit reminiscent of a little 2016 fad known as Pokémon Go, which seemingly dropped off the face of the earth as quickly as it appeared.)
Investing in real estate through a crowdfunding platform can be an exciting and lucrative endeavor. This is especially true for investors who are new to the real estate investing industry. Since the crowdfunding platform is new and unique to real estate, there are pitfalls in which investors should avoid when attempting to invest in a crowdfunding opportunity for the first time. These are the top items investors should consider before investing in a crowdfunding opportunity.
1. Experienced Real Estate Underwriters
As a real estate investor, knowing that a company has knowledgeable real estate underwriters helps ease the burden of wondering if this deal is real or even profitable. The real estate underwriter’s primary focus is to analyze the deal, identify the risks involved, determine how to eliminate as much risk as possible and structure a deal that results in the best possible outcome. This process will ensure that deals are worthy of investing in. The main focus of an underwriter is in the financial portion of the deal, it is imperative that the underwriter carefully assess all assumptions to ensure that profitability is achievable and that investors will earn a generous return on their investment.
2. Investment Returns
As a rule of thumb, if you have extra money sitting around in a retirement account or savings account earning less than 10%, it would be wise to consider real estate to help grow your retirement nest egg. Crowdfunding platforms can offer exciting opportunities to new investors that were not available to them even a few short years ago. Most crowdfunding platforms offer an annualized 10% yield per deal and some crowdfunding companies offer profit participation as an additional upside to investing in a particular deal.
3. Quality of Sponsor
Having a strong and experienced sponsor is one of the best ways to mitigate risk. A strong sponsor will understand how to value the property in the initial acquisition phase. Successful sponsors understand what it takes to run a property through the investment cycle from the acquisition, managing the asset during the holding period, then timing the correct moment for selling the asset at its most profitable. Having a sponsor that can demonstrate the qualities will help ensure that the investment is profitable.
4. Quality of Asset
A strong real estate asset is a key to profitability. Depending on the asset class, being located in a highly desirable market contributes greatly to the asset as a whole. In addition to the market, the asset’s quality can also be determined by trailing financials or rent rolls for example.
5. Cost of Entry
The minimal investment may not be important to some, but others, who just want to test the waters would likely not want to shell out, for example, $25,000 on their very first investment. Lower minimal investments allow new investors to get a feel for crowdfunding especially if they are new to the platform or crowdfunding as a whole. Ultimately, smaller minimal investments give investors a chance to find out if real estate crowdfunding is for them in the future.
In addition to having professional real estate underwriters analyze the deal, the information or data from the underwriter should be easy to follow and make sense. An investor should be able to determine if a particular deal is worthwhile or not; simply by the way the information is presented on the offering page. Advance jargon is sometimes confusing for a novice real estate investor. Real estate investing through crowdfunding should be easy and seamless, and not require an advanced degree of any kind.
7. Getting Paid and How Often
Getting paid should not be a mystery, it should be clearly stated somewhere within the deal. If you cannot find how often or when you are paid, then likely you should find another deal in invest in all together; because making money is the reason you’re investing in real estate in the first place, right?
8. Exit Strategy
Knowing how and when the investor will get their money back is imperative to any investment opportunity. A crowdfunding deal should have a clear exit strategy listed within the deal that clearly tells investors how the sponsor intends to repay the initial capital investment; best if in a sequence of easy to follow steps. If the exit is not listed, you should be able to find out relatively easy from the platform’s customer service team.
9. Crowdfunding Platform
A real estate crowdfunding platform should be easy to navigate. The platforms should be secured and offer an investor every tool they will need to make an informed decision of whether to invest in a deal or not.
A real estate crowdfunding platform is best when they do not charge the investors fees for investing. It seems kind of silly that an investor who is lending their money should pay to play twice. There are more than enough deals on different platforms that do not charge the investor asset manager or accounting fees. It would be wise to seek those out first, then fall back on investor fee-based platforms when they have an irresistible deal that would be worth paying the fee to invest in that particular deal.
As you can see, there’s a lot that goes into investing in a crowdfunded real estate deal. Following these tips will help investors land the perfect deal on any platform regardless of how the platform structures the deal.
When you are ready to invest, go through t this list to ensure that everything meets your standards as a real estate investor.
The post 10 Things to Consider When Investing in a Real Estate Crowdfunding Deal appeared first on RealtyeVest Crowdfunding News.
Offers Investors Unique Opportunities in High-Performing SFR Asset Class
Jacksonville, FL, June 15, 2017 — RealtyeVest seeks accredited investors to create an exclusive $1M Single Family No-Load (1) Pledge Fund for the fast financing of highly opportunistic off-market Single Family Residential (SFRs) deals in North Florida’s profitable SFR buy-renovate-sell market. Investors in this eFund strategy will have a strategic advantage over competing non-fund investors.
“Given the number of Funds seeking capital in today’s private equity market, emerging managers often run into difficulty finding investors willing to fully commit their capital for 10 to 12 years in a traditional blind-pool private equity fund structure,” said Daniel Summers, CEO of RealtyeVest. “As a result, our clients have increasingly asked us about short-term, No-Load alternatives to the traditional private equity/debt Fund model.”
What is a Pledge Fund
A Pledge Fund is an arrangement where investors pledge a predetermined dollar amount into an investment pool with pre-disclosed parameters. Sponsors (real estate operators) have access to the pledge fund for fast financing of attractive deals, enabling them to almost always edge out the competition. Details of every investment opportunity are completely transparent, providing investors the choice, on a deal-by-deal basis, whether to participate in an investment.
Hottest Market Opportunities
North Florida is one of the Real Estate Markets in Florida and in the United States according to Forbes. Single family properties are increasingly in high-demand and selling quickly in the Greater Jacksonville area. Real estate investors who have their financing secured ahead of time stand the best chance of acquiring the hottest properties normally without layers of brokerage fees, and earning aggressive financial returns on their investment.
Pledge Fund Property Distinctions
- Located in Duval, St. Johns, Clay, and Nassau Counties
- Single Family Residences
- No Mobile or Manufactured Homes
- No Rural Areas, Located in Up-Trending Neighborhoods
- ARV (After Repair Value) Generally Between $100k – $300k
Pledge Fund Financial Overview
- $1,000,000.00 Pre-Pledged Fund
- Interest Only Loan (2)
- 10% Interest Paid Monthly
- 10% Profit Participation From Net Profits (5)
- Secured By a 1st Mortgage with 1st Lien Position (3)
- Pre-Paid Interest Will Be Held in Escrow and Drawn Upon For The Length of Term
- Loan to Verifiable ARV (4) Not to Exceed 70%
- Normal term is 6-9 months
- No-Load Fund – A no-load fund means you can invest in single-family homes shares of the fund at any time without a commission or sales charge.
Interest-Only Loan – A non-amortizing loan in which the lender receives interest during the term of the loan and principal is repaid in a lump sum at maturity.
- 1st Lien Position – A lender or creditor in a first lien position has priority in case a debtor defaults and collateral has to be liquefied to settle the debt. For example, mortgage lenders are usually in a first lien position; if a borrower defaults on his payments, the mortgage lender is the first creditor to receive remuneration from the sale of the property.
- ARV – ARV stands for After Repair Value. This is an estimated value of a property after it has been completely renovated. This is a crucial number for those flipping homes and allows you to calculate the spread between what you should purchase it for and the price you can expect to resell it for.
- Net Profits – defined as Gross sales price less any and all acquisition costs, holding costs, rehab costs, closing costs including but not limited to liens, commissions, title charges, etc.
Because RealtyeVest’s Single-Family No-Load Pledge Fund is financing properties exclusively in America’s hottest real estate market, the Pledge Fund will quickly reach it’s $1M funding goal. Accredited investors are encouraged to immediately express their interest in pledging to the fund in order to seize their spot in this unique, high-yield investment opportunity.
The post Press Release: Introducing Exclusive No-Load Pledge Fund appeared first on RealtyeVest Crowdfunding News.
It’s a challenging environment for fund managers. Investors want more control over their investment decisions and to “know” exactly what they are investing in. Investors also want good overall returns while maintaining some control over what they are investing in. For these and other reasons, the Pledge Fund is exploding in popularity over the more traditional Blind Pool Fund.
Old concepts become new again, particularly in the investment world. Pledge Funds are an old concept that is finding increased usage in the real estate investment world. Investors are embracing the control and power that Pledge Funds give them over Blind Pool Funds. To understand just why they are becoming more popular, it’s important to know what they are and the advantages they have over Blind Pool Funds.
Pledge Funds Defined
Pledge Funds are private equity/debt funds that are set up to invest in projects within a very limited set of parameters. The managers of the Fund find projects to invest in that meet the pre-determined set of parameters. Investors are given information on the project and its expected returns. Projects are funded on an individual per deal basis. If an investor doesn’t want to fund a deal, they don’t have to, even if every other investor in the fund invests in the project.
VIEW THE PLEDGE FUND!
Login to view details about the ReV Single-Family Pledge Fund!
Pledge funds are seemingly a 21st-century investment vehicle, but a form of the pledge fund has existed for centuries. In fact, the railroads were built with a form of this fund. It was only recently that investors chose to turn over all investment authority over to fund managers.
It’s clear that Pledge Funds offer advantages when it comes to making investment decisions. These advantages are becoming even more pronounced in industries like real estate. Pledge Funds put decisions in the hands of individual investors, but the actual managing of the investment stays with the fund managers. It’s a powerful advantage for those who want an active role in their investments without the day-to-day management work.
Blind Pool Funds Defined
Blind Pools Funds for investors to investing private equity and debt fund where investors invest in the Fund and a fund manager has wide latitude in determining what investments are made and when they are made. Investors in the blind pool fund do not green light or red light investments as these decisions are made solely by the fund managers.
Blind Pool Funds became popular in the 1980’s and 1990’s with the rise of venture capital and angel investors. While they are still quite popular, some investors began to shy away from them after the dot-com bust. Many Blind Pool Funds had made investments in ideas that were never destined to earn money and some investors lost heavily. A good example is the spectacularly famous flop that was Pets.com.
The obvious advantage of Blind Pool Funds is that decisions are made by the fund managers. The fund managers know that they can throw the weight of the fund behind any project they feel should be backed. Investors don’t need to worry about investment decisions because they are made by skilled fund managers.
Pledge Funds vs. Blind Pool Funds
Pledge Funds have the distinct advantage of putting investment decisions in the hands of the individual investors. They are not bound to invest in what the majority of the investors in the fund want to invest in. If the majority of the investors want to invest in a new shopping mall, those investors who feel there is a shopping mall surplus can choose to abstain for investing in the project.
Pledge Funds can easily limit themselves to certain real estate sectors, like single-family real estate, making the investment parameters naturally narrow. Individual investors understand what the projects are doing and what the expected returns are. They know whether an investment is a good choice or not and can choose to pledge their funds accordingly.
VIEW THE PLEDGE FUND!
Login to view details about the ReV Single-Family Pledge Fund!
Investors without the time to manage or determine what investments to make are a good candidate for a Blind Pool Fund. It’s a set it and forget it method of investing that can solely focus on fund returns. Investors may also fall into this category if they don’t have access to investment information or support.
It is possible for Pledge Funds to provide the right kind of investment information support to these investors so that they feel more comfortable pledging or not pledging an investment. Just because a fund allows an investor to make a choice, it doesn’t mean they are forced to make a choice. The fund manager can give advice on real estate investments. It’s this flexibility that is making pledge funds a popular choice.
As the real estate investment market continues to change, investors should definitely look at the Pledge Fund as a popular alternative to the traditional blind pool fund. It may provide just what investors want and need when taking control of their investment choices. With the right kind of management, they can produce above average returns while providing investors with a good choice of real estate investment vehicles.
This is why RealtyeVest has chosen to focus its first ReV Pledge Fund on single-family homes in the hottest real estate markets in the United States. In the right market, single-family investments are predictable and offer returns ranging from 10% – 14% annualized yield. The ReV Single-Family Pledge Fund focuses on debt investments with limited up-side profits participation in Northeast Florida that are secured with a 1st lien mortgage. This short-term investment fund allows investors to pre-fund quality investments, securing their position in Northeast Florida’s highly competitive real estate market. The ReV Pledge Fund was designed for both novice real estate investors looking for a simple and seamless way to invest in single-family buy-and-sell projects as well as accredited investors searching for a great starting place with quick turn arounds. If you fall into either of these categories, the ReV Single-Family Pledge Fund is a great solution for you!
The post Why Pledge Funds Are Becoming More Popular Than Blind Pool Funds appeared first on RealtyeVest Crowdfunding News.
Florida’s Space Coast, including the Merritt Island area where Cape Canaveral sits, continues to experience a booming space travel activity. As big names such as Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin set up shop in the area, more high-earning professionals continue to troop into the Space Coast, causing a real estate boom that is expected to last for a long time to come. As a result, Florida real estate investment news will be nothing without mention of space travel.
Space travel continues to attract the interest of many people, thanks to advanced technology and entry of notable private investors like Elon Musk, Jeff Bezos and Richard Branson. Perhaps, owing to the charisma of these personalities, the opening of space industry to private companies as opposed to government agencies likes NASA inspires more people. This means Florida’s Space Coast is in need of more investment in real estate to cater for demand of quality housing by the staff of these companies and the flurry of other support businesses that will crop up.
Big Investment and Job Growth due to Space Travel
The fact that the number of applicants to NASA’s class of astronauts rose from 6,300 in 2013 to a record 18,000 in 2017 asserts the growing popularity of space travel. This was apparent as Vice President Mike Pence joined NASA officials on Wednesday, June 7 to unveil 2017’s new class of astronauts. This gesture of federal support to space travel will definitely boost investor’s confidence for the benefit of Florida’s Space Coast real estate.
This comes after Space Florida approved a $5 million budget to upgrade the Cape Canaveral Air Force station’s Launch Complex 40 to support more efficient launch operations. Already, SpaceX is doing repair works on the launch pad destroyed by a rocket explosion in September 2016. Undoubtedly, these developments will see a hike in demand for housing in the Merritt Island area, signaling handsome returns for realtors and investors in the Space coast.
Elon Musk’s Space Exploration Technologies Corporation, also known as SpaceX, has found renewed energy in space travel. It has partnered with United Launch Alliance, which brings together Boeing and Lockheed Martin, and they already use launch pads at Cape Canaveral for their space travel operations.
Space Florida CEO, Frank DiBiello, said that the $5 million would be matched by over $35 million in private investment and will generate 70 jobs each attracting average pay of $80,000 per annum. “That’s a good match,” Bill Dymond, the Space Florida board chair, said. “And 70 jobs at $80,000 a year I think is worth $5 million as well.” This means that demand for high quality real estate by high-earning individuals will not be in short supply.
Moreover, Blue Origin is investing $200 million to build a rocket factory in the locality. “We’re not just launching from here,” Mr. Bezos said of the move, “We’re building here.” According to state officials, the rocket manufacturing and assembly plant will create a projected 330 direct jobs. Jeff Bezos’ Blue Origin already leased Launch Complex 36 for its space travel operations. This attests to the expected growth in demand for quality single family housing on Merritt Island.
Such an announcement by Blue Origin and the evident presence of SpaceX and NASA on the Cape Canaveral speaks volumes of renewed activity on the Space Coast. In fact, Jeff Bezos hopes to revive Launch Complex 36 that has laid dormant for a decade! Similarly, these investments are breathing a new life to real estate market around the Merritt Island area.
Space Florida Ramps up Spending to Support Space Travel
Space Florida, on the other hand, has shunned budget cuts to spur growth in the space travel industry. It is not only charged with developing aerospace business, but also with managing spaceport infrastructure in the State. Therefore, it works in close contact with organizations like SpaceX, Blue Origin, Boeing and NASA to achieve its goals. Due to its efforts, companies like Embraer, Northropp Grumman and Rocket Crafters have moved into Merritt Island or expanded their operations.
Funding for the state organization was maintained at $19.5 million in 2017, as was the case in the 2016 budget. This means it can comfortably pursue space travel business to the benefit of the economy. Consequently, real estate businesses stand to gain from the growth in space travel that Space Florida advances.
The agency is keen in offering incentives to aerospace and aviation businesses to woo more investors and boost their businesses. For instance, it allocates $20 million per annum of what is provided by the State Department of Transport to build and improve infrastructure such as launch pads at the Kennedy Space Center. After the shuttle downturn that led to 18,000 job cuts in 18 months back in the 1970s and dampened Florida real estate investment news, there is no taking chance with the new space travel economy.
Furthermore, the Space Florida has approved up to a tune of $2.75 million more in FDOT funding in order to expand roads, relocate overhead utility lines as well as access roads in Exploration Park. This is aimed at benefiting Blue Origin and other companies such as OneWeb Satellite. However, we know that good infrastructure is a catalyst for growth in real estate business and rises in house prices. Therefore, real estate investors stand to gain a lot from the infrastructure spending.
In conclusion, space travel has unleashed many opportunities for real estate business in Space Coast. Merritt Island area real estate business, due to its strategic location and hosting of the Kennedy Space Center and several launch pads, stands to gain a lot from the space business. Therefore, Florida real estate investment news will be dotted with success stories of Merritt Island real estate investors.
SUBSCRIBE TO GET THE LATEST REAL ESTATE NEWS OR CREATE AN ACCOUNT TO VIEW OUR REAL ESTATE INVESTMENT MARKET PLACE
The post Space Travel is Powering The Real Estate Market on Earth appeared first on RealtyeVest Crowdfunding News.
CEO Daniel Summers
Mr. Summers has over 30 years of real estate finance experience. He is rapidly building RealtyeVest to the same magnitude he did with his former real estate investment firm Hastings Realty and Madison Realty Group, which he grew into a $1 Billion collection of office buildings and shopping centers.
Mr. Summers is a frequent participant on investment panels, speaks regularly at real estate and investment events, and hosts webinars about real estate investing.
Opportunities and Market Trends
Real Estate investing with Realtyevest specializes in affordable housing and low-income community properties, as well as single family residential investments and commercial real estate rehabilitation projects. New projects are added to their platform weekly. They publish current real estate market trends and financial forecasts on their blog.
SUBSCRIBE TO GET THE LATEST REAL ESTATE NEWS OR CREATE AN ACCOUNT TO VIEW OUR REAL ESTATE INVESTMENT MARKET PLACE
The post RealtyeVest Lowers Minimum Real Estate Investment Amount to $5,000 appeared first on RealtyeVest Crowdfunding News.
The Monroe House is an online real estate investment in the community of Carriere, Mississippi — midway through Pearl River County — located between cities Picayune and Poplarville. The area is known for its growing population, which increased by 6,600 residents from 2000 to 2014, according to the U.S. Census Bureau. From 2010 to 2015, the county also experienced an increase of about 1,500 senior citizens.
It’s important to note that there is only one identified assisted living facility within the Pearl River County primary market area (PMA) that offers assisted living services. While there are no imminent plans for senior living developments in Carriere, the area represents a large untapped market for investors.
Tesla Solar Shingles
Tesla’s announcement to start selling its long-awaited solar roofing system was met with mixed reviews last week when the automaker published a cost comparison blog on its website.
The news of the announcement follows the 2016 merger between Tesla and SolarCity — one of the largest solar energy companies in the United States — and further implements Tesla CEO Elon Musk’s vision of a future defined by carbon-free energy.
In the blog post, Tesla said the new solar roofing system will cost $21.85 per square foot for an average American home — roughly 2,500 square feet.
While the product might be pricier than a traditional roof ($4.00-$7.00 per square feet,) it will ultimately pay for itself in reduced electric bills — a process Tesla says will take about 30 years to realize.
And if that isn’t enough, in reality, the price might nearly be twice that amount.
The Real Costs
The true cost, according to the blog, will be about $42 per square feet for solar tiles and $11 per square feet for non-solar tiles. Although Tesla recommends at least 50 percent of solar coverage to meet your home’s energy needs, the automaker factored in only 35 percent of the roof being covered with solar tiles when determining the average price.
Tesla even published a cost calculator for customers to price out their own roof with coverage of up to 70 percent of solar tiles.
Regardless of the percent of coverage, costs will vary significantly depending on customer choice and the size of the roof. But one thing is for sure, the installation before factoring in the cost of energy will be much higher than a conventional roof.
Fifty years ago, the idea of building eco-friendly modular homes, using energy-efficient products, renewable materials and solar panels was impractical. Today, the momentum is with renewable energy, and because of proven tax benefits, more developers are opting to build energy-efficient homes and facilities.
For example, this assisted living facility in Carriere, Miss. will be developed as a “Green” building, which will significantly reduce its monthly utility costs.
This is all part of the global shift designed to reduce our reliance on fossil fuels, eliminate pollution and promote green energy alternatives. So, even though solar roofing isn’t cheaper than other current options, it may be a practical alternative for some energy conscious consumers.
The Bottom Line
But here’s the bottom line: although the installation includes materials and the removal of your old roof, taxes, fees and additional construction costs such as skylight replacements and structural upgrades are not included.
Even if someone decides to purchase Tesla’s Solar Roofing, most Americans live in their homes for less than a decade before selling. This means the majority of homeowners who purchase the new product will have relocated long before the investment pays for itself.
It’ll be interesting to see how much success the automaker has selling to different markets, with a price tag that can range from $30,000 to upwards of a $100,000 per installation.
I guess the market niche for Tesla’s solar roof product is that it turns sunlight into electricity, while maintaining the appearance of a traditional shingled roof. Nowadays, some solar panels cost less than $3 per watt for installation, and can pay-off in more than half the time (7-10 years) than the projection for a Tesla solar shingles roof.
Made with tempered glass, this product, unfortunately, will likely be limited to the more affluent suburb market.
So far, other companies have had little success incorporating solar technology into roofing tiles or shingles. As for the bigger picture, it remains questionable if the automaker’s newest gimmick will appeal to consumers as much as its vehicles do.
SUBSCRIBE TO GET THE LATEST REAL ESTATE NEWS OR CREATE AN ACCOUNT TO VIEW OUR REAL ESTATE INVESTMENT MARKET PLACE
The post The Real Price of Tesla Solar Shingles Is Through the Roof appeared first on RealtyeVest Crowdfunding News.
The Monroe House to Draw Seniors from Mississippi, Alabama, Louisiana to the Growing Community
CARRIERE, Miss., May 16, 2017 — RealtyeVest announced today capital raise plans for brand new construction of The Monroe House, an assisted living and memory care facility in Pearl River County, Mississippi. The beautiful, spacious facility sits on 4.4 sprawling acres, less than four miles from the new state-of-the-art Highland Memorial Hospital in Picayune. The Monroe House promises to attract seniors from nearby areas of Louisiana, Alabama and Mississippi.
“We are excited that this project offers amazing high-yield returns to our investors, and a much-needed facility for the local Carriere community.” said Dan Summers, CEO of RealtyeVest. “With access to private deal flow and unique investment mechanisms, RealtyeVest offers affordable real estate opportunities that investors would otherwise not be able to access.”
The Monroe House will be a 40,000 square-feet single story building with 60 one-bedroom, one-bathroom living quarters. Pearl River County has enjoyed consistent population growth over the past several years, where almost 20 percent of the residents are over 55 years old.
RealtyeVest has opened its online platform and social network to provide accredited investors unprecedented access to professional-grade real estate. Unlike competitors, RealtyeVest vets each offering through an extensive due-diligence process and remains actively involved through completion, investing side-by-side with investors. Investment opportunities on the RealtyeVest debt platform offer a 10 plus 10 reward program (10 percent annual return plus 10 percent profit share, while being secured with a first lien position on the asset).
The Monroe House offering sweetens investor enticement as an opportunity to immediately engage in.
“Our sponsor, longtime local banker Paul C. Monroe, wanted to kick off this program by aggressively offering a 12 percent yield and 10 percent participation on the first $1M,” said Summers.
Construction has been approved by the planning and zoning commission, and the board of supervisors. The building will feature large, modern community areas for residents. The rooms are approximately 20 percent larger than other assisted living facilities in the area. Each room will be equipped with a computer, high-speed wi-fi access, a television and telephone capable for video conferencing with family and friends.
“Until now, 13 million accredited investors in the country only had access to a fraction of the real estate opportunities on the market,” said Paul C. Monroe, project sponsor. “As a leading real estate investment management company, RealtyeVest has created a marketplace that allows investors to curate a profitable portfolio, while also expanding their network of other like-minded investors.”
Mr. Monroe has deep experience in real estate development as a co-owner and manager of multiple developments around Alabama and Mississippi, such as the Turnberry Condominiums, a 200-unit development, and the Bella Luna, a 128-unit high-rise with a 50-berth marina. He has also held various board and civic positions, including commissioner of the Mississippi Motor Vehicle Commission and Director of the Pascagoula Chamber of Commerce.
Income for the project is projected to reach stabilization within, or fewer than, 12 months, generating approximately $1.5M in gross revenue and netting an income of $168,746 by the end of its first year of operation. By the fifth year, it is projected to net an annual income of $733,000. Check out The Monroe House for more information.
As the percentage of retired Baby Boomers is expected to explode over the next decade, the demand for assisted living and long-term care facilities will naturally have a parallel effect.
Today, the senior housing industry is considered one of the fastest growing real estate investment opportunities in the national housing market.
In 2003, Warren Buffett proved to be way ahead of the curve, when he purchased Clayton Homes — now the largest builder of mobile homes — for an estimated $1.7 billion.
The senior housing industry has an estimated market value of more than $300 billion annually. And the PEW Research Center has shown that the average return on investment for the senior housing industry, significantly outperforms all others within the real estate sector.
In the past, senior housing has been a very resilient part of the housing demand, with occupancy rates trending around 90 percent. Even during the recent “Great Recession” occupancy rates in the senior housing industry remained consistently above 85 percent.
On average, assisted living homes costs between $3,000 to $5,000 per month, per tenant, and can accommodate from 8 to 16 residents per unit, depending on state regulations.
But even with their generally higher education and income levels, many of these future residents will be unable to afford the luxury of paying for quality assisted care.
The average Baby Boomer household, ages 56-to 61-years-old, has about $164,000 saved for retirement, according to a report by the Economic Policy Institute. That amounts to around $8,200 a year, or only $680 a month, to supplement Social Security or other retirement income.
However, the median Baby Boomer retirement savings for the same age group is only $17,000, which is far less than the average household. So in reality, the future for many Baby Boomers approaching retirement is much more grim.
In the same report, an estimated 41 percent of households (ages 55-to 64-years-old) have no retirement savings set aside, whatsoever.
Although the Boomers approaching retirement are generally too young to need assisted-living, (the average resident age being 84) they are already having an impact on that market.
“Assisted living facilities have a projected 30 percent growth rate over the next 10 years, and are selling 18 percent faster today due to a lack of inventory,” said Daniel Summers, CEO of RealtyeVest, a real estate investment company that specializes in raising capital for assisted living and affordable housing.
While the above average income Baby Boomer will continue to push the assisted living capacity demands through 2030, the remaining will be searching for an alternative to assisted living by downsizing to affordable homes.
“Developers are recognizing the growing demand for affordable housing, and have begun aggressively acquiring and upgrading communities across the United States,” Summers said.
“And many retirees are trading in their homes for RVs and moving into 55-plus mobile home communities.”
“If you’re a Baby Boomer on a fixed or limited income you can rent or sell your larger site-built home and purchase an RV or mobile home and move to the retirement location of your choice,” Summers said.
The post Baby Boomers Nearing Retirement Drive New Markets in Affordable, Assisted Living appeared first on RealtyeVest Crowdfunding News.