On-Trend Real Estate Investing

One’s ability to seek trends, global or otherwise, is key to any prudent investing. Real estate investing supports an innate degree of risk along with an inherent level of reward. Thus, a real estate investor’s “risk aversion” is determined by the level of each of these requirements. This is considered to be a “rules-based” approach seeking knowledge to answer the question: “Why should I invest or not invest in this asset class?”

real estate market research fro investing

Make intelligent real estate investments

A key component in making sound real investment decisions is deciphering the misinformation from accurate statistical data. Conversations at the country club should not be a driver in the process. Investing should be viewed as a game of chess, not chance. The player/investor needs to be alert, aware of his or her weaknesses and strengths, mindful of the opposition and most decidedly enter the game with a plan.

Here is a look at some of the moving parts of the real estate investing market to help author an investment plan. Little in the U.S. macroeconomic data suggests overheating. GDP has settled in at about 2 percent and job growth is running at about 1.7 percent pace (2.5 million annually). The Fed has been overly cautious about raising rates due to volatility of data, financial markets and the geopolitical climate. Therefore, the veritable “punchbowl” remains.

“SKATE TO WHERE THE PUCK IS GOING, NOT TO WHERE IT IS” ~WAYNE GRETZKY

Now, let’s drill down a bit and look at a couple of cross sections of Americana. Jobs are no longer careers and millennials are not yet looking for the commitment of owning a home. They are footloose in the job market and reticent to establishing roots in any community. Understanding this trend, developers are building “condo” quality rentals which, when the market dictates, can change in mid-stream and become a sales driven opportunity. Also being considered is the multigenerational developments that allow millennials and Baby Boomers to coexist. Both have similar amenity and size requirements, which generates huge development options.

With over 10,000 Baby Boomers retiring every day and understanding the related socioeconomics, asset classes that were once taboo are now becoming the investment of choice. Approximately 19 percent of retired Americans have more than $250,000 set aside for retirement, while 34 percent of retired Americans have less than $250,000 and 47 percent have zero savings set aside for retirement.  What we have here is an aging population that will mostly be dependent on Social Security and Medicare. This opens the floodgates for interesting chess moves.

Affordable Housing

Affordable Housing is probably the last bastion of home ownership. Developers are now recognizing this option and have begun aggressively acquiring and upgrading Parks across the United States. Warren Buffet, as an example, moved into this space by acquiring Clayton Homes, the world’s largest builder of mobile homes. This type of housing is affordable, new parks are clean, safe and loaded with amenities. Most importantly, however, is the limited supply of available Parks. There are only about 40,000 such parks left because many have been acquired and redeveloped as urbanization has overtaken rural America.

retirees enjoying their real estate crowdfunding investments

Retirees are lending power to the real estate market

Assisted Living

As we live longer and become more dependent on others for our daily care, seniors are in greater need of assistance with daily living activities. Assisted living includes meal preparation, medication management, house cleaning, laundry and bathing. Although many seniors value their independence, they may require help with some of their daily activities. Many do not have family available to help care for them or it might be a matter of location, time and commitment.

This creates a unique opportunity to serve this age group. There is a large and growing demand for quality, comfortable residential assisted group housing for the elderly that provides caring assistance for daily living. Assisted group housing in a residential home is an emerging trend throughout America.

Many families prefer an alternative to institutional type living facilities for their parents. Many are looking for a home-style group residence that is affordable, safe and comfortable. Residents enjoy 24-hour caregiver support, private bedrooms with attached baths, fantastic home-cooked, dietitian-approved meals, housekeeping and laundry services, social activities, physical and mental exercise opportunities, as well as the optimal staff-to-resident ratios in the industry. This solution provides for a vibrant, happy community.

These are just some of the ideas behind on-trend real estate investment. Remember to look at things both from a macro and a micro level. Look for real estate segments that have reasons to exist and flourish. Pay attention to the details.

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The Secret Untapped Market of Assisted Living

Knowing that we cannot turn back time — at least in this day and age — growing old is inevitable. So, how would you feel about investing in your future retirement before you reach that point in your life?  Investing in retirement means more than securing a large IRA. It means putting that hard earned savings to work.
cup of coffee

Growing your savings within the assisted living sandbox will help you reach your retirement goals faster and with ease.

The first members of our Boomer Generation started turning 65 in 2011.  A report released by The Pew Research Center found that over the course of the next 19 years, Boomers will account for 79 million retirees, which equates to over one-fourth of the total U.S. population. Research also shows that every day about 4,000 retirees will be turning 85 and an average of 70 percent of those seniors will need roughly 3.5 years of assistance for daily living. In 2005, the assisted living industry was worth $139 billion. By 2020, it is projected to reach $207.3 billion. Assisted living services and nursing homes will account for more than two-thirds of revenue.

The growing industry of assisted living creates great opportunities for investors, as well as for those that require special services. Most people are willing to pay whatever it takes to remain in their comfort zones. Assisted living provides such care as semi-independent living, transportation and, best of all, peer-to-peer relations.  Additionally, the opportunity for investors to take part in this industry is phenomenal. Currently, operating a small assisted living facility can have a potential gross income of more than $300,000 in its infancy.

You might be asking: “What is the difference between an assisted living facility and a nursing home?”  Sure, they both offer the same benefits: taking care of loved ones. But nursing homes are more like hospitals, designed to focus on those that cannot function independently.

Assisted living facilities focus more on helping elders enjoy their lives and independence. Not to mention, rental rates at assisted living facilities are generally lower than nursing homes because they do not provide the comprehensive care that nursing homes are permitted to manage.

So, what does this mean for an individual looking to invest in an assisted living facility?

It means that it’s a great time to capitalize on this growing market. With the improvements in technology and science, people are living longer and shying away from traditional retirement facilities.

residential assisted living retirees

Assisted living facilities allow retirees in reasonable shape to socialize and maintain their independence with minimal supervision. The untapped market is “not” the retirees themselves, but their children. In most cases, the children are the first to recognize when a family member(s) can no longer live without assistance. The willingness to seek help completely changes the dynamics of assisted care. This affords the industry further expansion and larger investment opportunities.

Growing your investments within the assisted living industry is likely to propel an investor’s portfolio to new heights, creating new opportunities and stable incomes.  This industry is growing rapidly and will continue to grow over the next 20 years.  Do not hesitate to invest in this revolutionary opportunity.

RealtyeVest is a real estate crowdfunding company that offers investors the opportunity to capitalize on residential, multifamily and on-trend properties across the United States.

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Why Assisted Living Is the New Investment Opportunity of 2017

IHT Realty Crowdfunding has rebranded itself as RealtyeVest.

Assisted living has recently become a desirable asset for many new and experienced investors.

With waves of Baby Boomers reaching retirement, assisted living is rapidly moving into the spotlight of real estate investing.

It’s no surprise that the target demographic for the business platform has grown exponentially, with more than 10,000 Baby Boomers hitting 65 every day until 2030, according to a study by The Pew Research Center.

The study found that 76 million people were born in the U.S. between 1946 and 1964. If you factor in the influx of immigrants and the amount of people who passed away during that same period, there are about 79.6 million seniors in the United States. If you divide that number by 19 years and then again by 365 days, you’ll find there are about 11,476 Boomers turning 65 each day.

All the same, over the next 20 years, the amount of seniors moving into assisted living homes is projected to rise. This is expected to increase demand for assisted living services and facilities, and provide an exciting opportunity for entrepreneurs and on-trend investors.

In a blog post on Tony Robbins’ website, Ajay Gupta, Robbins’ personal advisor, lists senior housing as the No.2 safest place to invest right now — “meaning they’re not as susceptible to the fluctuations in economic conditions,” Gupta said.

“We are currently facing the largest demographic shift we’ve ever seen — a tidal wave of demographic inevitability as Baby Boomers reach their Golden Years,” the article said.

Today, there are 45 million Americans that are 65 years or older  — a number that is projected to grow to 80 million over the next 25 years.  And with life expectancy continuing to increase, seniors will have to decide where to spend their remaining twenty or more years.

“It doesn’t matter if interest rates go up or down, it doesn’t matter who the President of the United States is, or what is happening in China or Greece; every single day, 12,000 Americans are turning 65 years old,” Gupta said. So, if you can own real estate that is catering towards this demographic, you are almost guaranteed (high) occupancy over the next 25 years.”

RealtyeVest is a real estate crowdfunding company that offers investors the opportunity to capitalize on residential, multifamily and on-trend properties across the United States.

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Baby Boomers Nearing Retirement Drive New Markets in Affordable, Assisted Living

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.

Even self-help coach Tony Robbins is getting in on the action, by listing senior housing as the second safest place to invest in a recent blog post on his website.

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.

Invest in Mobile Homes

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.

 

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RealtyeVest Offers High-yield Investment Opportunity in Brand New Assisted Living Facility in Pearl River County

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.

A rendering of the 40,000-square-feet, single-story facility.

“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.

Learn more about RealtyeVest at www.realtyevest.com. Connect with them on social media @RealtyeVest, on Facebook or Linkedin.

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