Is real estate investment difficult?
Matt Teskey
Business Development Executive Driving market expansion & client relationships.
Have you tried to buy eggs recently? They aren't cheaper when the shelves are bare. The same is true for housing. Large or small, the forces of supply and demand impact the value of every resource, commodity, service, product, and asset in our economy.
Housing, the largest asset acquired by most Americans, continues to become more elusive. Lack of affordability is being driven by the nexus of limited existing supplies, tighter credit standards and stubbornly high interest rates. In desirable markets supply is so anemic that, even if rates cooled, pent-up demand would only push prices higher. Buyers face headwinds and those headwinds have tailwinds.
These forces embolden residential real estate investors. The terrain is sloped in their favor, and they know it. Small or large, experienced or new, anyone with the appetite to invest can see the opportunity. Even with higher borrowing costs than banks, private capital is well positioned to provide the liquidity needed to make deals happen...and they are significantly easier to work with than the banks, justifying the cost delta.
Private capital, largely institutional, may improve access to liquidity but finding the deal, designing the right plan, getting through permits, and managing the general contractor...then selling the project at top dollar, it's not for the faint of heart. Real estate investing is not a quick path to fortune. It's not easy. Or, is it?
At Legacy Group Capital, where the mission is to create community wealth through real estate lending and investing, it is significantly easier to invest in residential real estate. Legacy Group Capital offers a variety of funds, loan syndications, and direct project investments to its investors who not only earn attractive yields, but participate in the profits of a diversified residential development portfolio.
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Legacy Group Capital's platform provides such attractive access to real estate investment returns that many of its accredited investors are the builders, developers, general contractors and real estate agents that they finance deals for. What's more, several of the funds also permit an investor's deposits to be counted as the required equity in the projects the investor has in process.
Many of the investors that I've met with to explain how this is possible look at me in disbelief. Why isn't this something more platforms offer, they ask? Well, that answer is a little harder. Perhaps they have a different mission, a different vision? Maybe they don't do real estate development as well? Perhaps they prefer to keep it difficult because it's in their interest to do so? Whatever the reason that others don't, or can't, Legacy Group Capital makes it easier, significantly easier, to invest in real estate.
Investing in residential real estate, getting exposure to the lopsided supply and demand dynamics of the current market, is probably easier than you might imagine. You just need to make sure and choose the right partnership to help you achieve your investment objective.