WHY REAL ESTATE?

Multifamily investments, in particular, have the best risk-adjusted return of any real estate class coupled with one of
the lowest failure rates.

Why Real Estate?

Real estate provides an investment class that offers a tangible asset that can preserve capital in economic downturns while also providing current income and capital appreciation. Multifamily investments, in particular, have the best risk-adjusted return of any real estate class coupled with one of the lowest failure rates. We work to create unique opportunities for our investors in this space. We invest in every transaction with you for maximum alignment and our process is uniquely designed to add value in every stage of the investment process.

Regulation A gives companies the ability to raise as much as $75 million in equity investment from the public — and remain exempt from registering the offering.

“In the year 2000, there were 8,000 publicly traded stocks, and today there’s around 3,700,” Mitch Reiner, founding partner at Altera Investments, told US News and World Report. That’s nearly a 50% decline in public investment options in just over 20 years. Meanwhile, according to McKinsey’s Private Markets Annual Review, private market assets under management grew 170% within the last decade

US Private Equity Index boasts a 10.48% 20-year return, while the S&P 500 only managed 5.91% over those same two decades. These results have led investors to pay more attention to the private market.

And again, private market investments have outperformed public assets considerably. Over the past 15 years, private equity has marked 14% annualized returns, while the S&P 500 posted 9.3%, the Russell 3000 returned 10%, and MSCI World delivered 7.2%.

Until recently, the private market was solely the domain of high net worth investors. High net worth investors have traditionally kept upwards of 60% of their assets in alternative investments.After all, these people could more readily absorb losses when they occurred and have the connections to make deals happen before they reach the public. However, the other side of this is that mainstream investors have long been denied the opportunity to benefit from the growth potential of well-run private businesses

The New 60/40 portfolio:

Traditionally investors have been recommended to maintain a balanced portfolio. Modern portfolio theory has proved time and again that having 60% stocks and 40% bonds creates a superior portfolio over the long run. This dynamic has changed dramatically in recent years. Rates are increasing however bonds have under performed relative to rates. Charles Schwab has predicted that bond yields after inflation will create negative returns for at least the next decade. This is where alternative asset classes come in. They can achieve many of the diversification goals that bonds offer in the traditional 60/40 – uncorrelated returns, potentially lower volatility – but in many cases, may have the potential to offer higher returns. 77% of millionaire investors own real estate while 90% of the Forbes 400 wealthiest made or retain wealth via real estate.

However, Population is still Increasing

As home ownership is dropping, the population is continuing to increase which drives the demand for apartment living higher and higher.

We are a Nation of Renters and it WILL Continue…

Apartment vacancy rates remain low due To increased demand. We continue to trend towards renters. Rental inventory remains low making multifamily attractive for years to come.

Explore our open private real estate investments.