why residential real estate investing trumps commercial in 2014

© Maverick Investor Group, LLC. All Rights Reserved.

Why Residential Real

Estate Investing Trumps

Commercial in 2014

OVERVIEW


When purchasing investment real estate, well-resourced investors often make the mistake of

looking to buy commercial property instead of residential investment property, reasoning that an

apartment complex or other commercial property is a more scalable and profitable asset than

single family rental properties. While this may seem logical, it is typically not the case in 2014, as

market conditions created by the aftermath of the housing collapse have made investing in

residential real estate a superior option. This presentation will discuss the many reasons for this.

Maverick Investor Group assists individual real estate investors in purchasing turnkey residential

investment property in the most advantageous markets.


A Booming Market After the crash, the residential real estate market is soaring back

up, with home prices and buyer demand increasing rapidly.

• In 2013, home prices increased in more than two-thirds of the

276 cities surveyed by Clear Capital.

• Industry experts are predicting a strong year of growth in 2014.

• Although prices are rising fast, many markets remain well below

the peak prices of 2006 and also below the historical trend line,

so ample upside potential remains.


Why Residential?

At this unique historical moment, there are a number of

advantages of residential investment property over

commercial.

• The aftermath of the housing meltdown has created a

unique historical moment where investors can buy single

family homes for less than builder replacement cost.

• Due to the foreclosure crisis, many families with stable

incomes have been displaced from their homes and

thrust into the rental market. They prefer to rent SFHs

rather than apartments so demand is rising fast.


The Big Players Agree Large institutional investors and REITs see the value of investing in single-family homes. Many of them--who have previously bought

either exclusively commercial real estate or no real estate at all--are now buying single family rental properties for the first time

and scooping them up by the thousands.

Major private equity funds and other large investment firms such as Colony, Oaktree Capital, Och-Ziff Capital Management and

Blackstone Group LP are buying more than $8 billion worth of houses in markets hit hard by the housing meltdown, according to

Bloomberg.

And this level of buying activity is single handedly helping to move markets and drive prices back up.

Smart investors in the Maverick community have been buying in the path of growth and riding the wave.


Rental Demand Increasing

The demand for rental property is increasing, creating a more

reliable income stream for owners of single-family investment

properties.

• The percentage of people renting homes has increased to

35%, the highest percentage of renters since the mid-90s.

• Vacancy rates for rentals are decreasing sharply, according

to the Census Bureau.


Long Term Trends Also Support

Residential Investment Medium and long-term trends point to the benefits of residential

investment property.

• Homeowners pushed out of their homes by foreclosure want to

rent houses, not apartments, and this portion of the rental pool

is continuing to increase. These people will need to remain in

the rental market for quite some time as their credit is rebuilt.

• Student loan debt is pushing Gen Y to put off buying homes,

and increasingly making them unable to qualify for mortgages.

This results in them remaining renters much longer, in need of

rental properties.


Financial Flexibility When your property investment is tied up in a

large piece of commercial real estate, your only

options are sell or hold. With a more diversified

portfolio that consists of multiple single family

rental properties across a number of markets,

you have both choices and hedges. You can:

- Sell off properties when their prices rise

enough, while retaining others for future sale.

- Have multiple, diversified streams of income,

incase some don’t perform as expected.


How Maverick Can Help Maverick Investor Group can assist you in identifying the right real estate investments for you by:

• Analyzing real estate markets across the country to help you select the most advantageous one.

• Inviting you to private buying opportunities for off-market turnkey properties.

• Helping you identify performing rental properties that meet your buying criteria.

• Introducing you to tax, legal and other professionals to help you with other aspects of your real

estate investing strategy.


About Maverick Investor Group Maverick Investor Group is a real estate investment company that serves

individual real estate investors exclusively. We introduce our clients to turnkey

real estate with strong fundamentals that begin earning them cash flow on day

one. Maverick thoroughly studies and continually monitors the real estate markets

and provides regular updates on the various market conditions and investment

strategies that are working in different areas. To learn more, visit us

here:http://www.maverickinvestorgroup.com/.

http://www.maverickinvestorgroup.com/



why residential real estate investing trumps commercial in 2014

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