The Big Secret

The secret lies in understanding real estate market cycle. Because you are experiencing a recession, depression or any other type of “ession” where you live, It does not mean that the economy is not booming in other Medium/Large cities throughout the US and Canada.Apartment buildings present a unique opportunity to utilize the economic forces for your benefit by leveraging the economies of scales. By acquiring and having 75,100,150 or 300 tenants pooling their money to allow you to pay for the building, pay down the debt service on the property, all expenses and allow you to walk away with money left over as positive cash flow not to mention all the tax benefits associated in depreciating the asset. Now this is a wonderful thing!!!

Oh, I forgot to mention that if you purchase at the right time in an emerging market, you will benefit from a rapid appreciation in the following 3 to 5 years following the acquisition. Read on...

Why Real Estate and Why Now?

Building wealth for our old age has become a must for all of us. The days of hoping that the government will be taking care of us in our old age has become a dream that will end in a nightmare. Currently there are many investment options available to all of us. These options can be very confusing. Here are some current investment vehicle options:

The Stock Market:

• Can be very risky and volatile.  
• Presents itself with the opportunity for very high gains if you are lucky enough to pick the right stocks at the right time.
• Average return for stocks in the past decade has yield a dismal 3.5%.

Money market account- CD’s – Savings and Checking Accounts

• Very little risk = Very little returns
• Most of these investment strategies will in a best case scenario yield you between a 1-2% annual return. Unfortunately, this particular investment vehicle does not keep up with our inflation rates in our county that is currently around 2.5%

Why Real Estate 

• You can use your IRA or 401(k) to invest in real estate?
• Real estate Apartment investing enjoys low to medium risk with High Returns
• Security: Having your investment secured by a physical asset, unlike the stock market.
• Leverage: The ability to leverage the Banks money when you invest only the down payment and the Bank finances the rest. With a 20% down payment 10 years ago and 50% appreciation on the entire asset, the return on your original investment would be about 250%.
• Cash Flow: While your real estate is appreciating, you also receive monthly checks from your tenants.
• Control: Unlike the stock market you can improve the property, raise rents, and add additional services. All of which increase the value of your investment.
• Tax Advantages: Talk to your CPA or Tax Attorney to see how this applies to you.

The Apartment Strategy to Wealth

Apartments are the most stable asset class in the commercial real estate sectors due to the factors listed below and for the simple reason that people need a place to live --even if they don’t have a job, need to cut back on spending, or cancel vacations..

The apartment sector is entering an era of high demand and low supply. This is because the population of renters is growing, while the recession has put a damper on new developments. In addition to a lack of new construction, other market drivers include favorable demographic trends and a reversal in homeownership rates. Now is the perfect time for investors to take advantage of these market dynamics by acquiring apartment properties and locking in still-low interest rates ahead of rent growth.

Home ownership is currently down in the US and Canada 3% since 2005. Many foreclosures are happening thought out the US. Currently 46% of all MLS listings on Residential properties are in Short Sale scenario. (Bank having to sell property for less than homeowner owes.)

The number 1 factor affecting Market cycles more than any other is JOB GROWTH. Surefit Investors Group meticulously track the job growth happening throughout US and Canada and inserts ourselves in the Path of progress to get the best returns possible.

So the question becomes WHY are certain markets better than other based on where they are in the Market Cycle?

Each US and Canadian markets are at different phase in the market cycle.