Have you ever thought about investing in commercial properties? Now is a better time than ever. The experts at Luxe Crowdfunding have the best tips when it comes time to invest in commercial real estate. This is why we are deemed one of the best places to invest in real estate. We are available to everyone in the United States.
Two Simple Rules
If you are looking to become successful in real estate investing, you must be sure to follow two straightforward rules. They are as follows:
- Understand which asset classes have the best risk/reward ratio.
- Invest in the best locations for your asset class and strategy.
Top Reasons to Invest in Commercial Real Estate
- Baby Boomers, the largest demographic group in U.S. history are aging and the largest part of that group is moving into the “Over 55” group. As an age group, those over 55 begin to downsize their homes and rent more. In fact, those over 55 as a group rent more than they own.
- The Echo Boomers, the second largest demographic group in U.S. history, is moving into the 18-30 range. This age group contains the largest group of renters and rents for 5 to 7 years before purchasing a home, if at all.
- U.S. Immigration is continuing to increase and will grow year over year into 2030. U.S. Immigrants as a group rent far more than they own and often continue to rent even after they could own a home. If you can provide quality rental properties in areas that capture a greater than average percentage of U.S. Immigration along with just national average growth than you will have positive absorption. This means you will have low vacancy rates and still have the leeway to charge favorable rent for your units.
- The national average of homeowners vs. renters has taken a huge hit. Due to the artificial increase in the homeownership rate over the past few years, people who were not really in a position to own a home, entered, and then departed the ranks of homeownership. We have seen a rapid transfer back to the average, which is driving increasing numbers of renters. Every 1% decrease in the home ownership rate is 1 million new renter households.
- Multi-family housing starts are at an all-time low. We have seen a 97% decrease in multi-family starts in the United States in recent years. This means that we’re not even building enough units to keep up with current population growth. Due to the existing financing market, this decrease in new apartment development will increase occupancy rates nationally over the next few years. It will not be as dramatic at first. Single-family housing vacancy still needs to correct itself, but we believe that correction will happen soon enough and leave apartments in a high position to meet housing demand.
- Multi-family Apartment Investments are historically one of the most stable of the commercial asset classes. You can make more growth equity in the Retail or Office asset classes, but you are exposed to a more volatile economic cycle. Apartments have some exposure to the economic cycle, but it’s nowhere near as significant. That is because the population cycle is not nearly as volatile as most economic cycles. As a result, the type of affordable housing that Multi-family.
One of the Best Places to Invest in Real Estate
Now is a better time than any to invest in commercial real estate. If you are interested in learning about real estate crowdfunding or even some more details about investing for real estate, be sure to call us today! We are one of the best real estate crowdfunding sites. Here at Luxe Crowdfunding, we are entirely here for you. Our crowdfunding real estate investing experts have the best commercial real estate investment advice in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We are one of the best places to invest in real estate in the United States.