REAL ESTATE INVESTING
If you are pondering whether or not real estate is a good investment opportunity for you, you've come to the right place. Here are a few well-written articles and thoughtful information from our team, that explains the economy and why a pooled fund makes so much sense in the current economy.
While other types of investments zigzag, real estate has a reputation for staying steady. Residential income-producing real estate offers a lucrative return on your investment that has the proven ability to deliver superior income to investors year after year. It is also a risk-adjusted return that allows you to diversify your portfolio without sacrificing return potential.
But, why now? That is the big question, right? Well, it’s because in 2006 the US was at its height of building at about 1.5M units per year. Then, building virtually stopped between 2006 and 2013 with the Great Recession. Despite the lack of housing starts, our population grew 7% over the same time.
Then, according to industry reports we started to see a rebound in 2018 with 1.1M units, in 2019 it was reported 1.29M units and in 2020 1.38m new builds were reported. And, according to the National Builders Association, 1.64M builds are predicted for 2021.
As of today, the building industry has still not rebounded to those number of units. In fact, construction of new homes in the past 20 years fell 5.5M units short of long-term historical levels, according to a National Association of Realtors report. That represents a very significant number over the past 20 years and has led to the housing shortage we currently find ourselves in.
This highlights one of the fundamental reasons we started the Ruthian Investment Fund, the ever-shrinking supply of housing. It’s also led to a yearly nationwide rent increase of 5.2%, which is why Ruthian has a full-service management company with 60+ years of property management experience that allows us to control costs and identify the right tenants.
So, why now? Despite the lack of housing, our population continues to grow. Population increases and very little building is a basic supply and demand problem. Also, rents are on the rise with no decline in sight.
The markets have highs and lows, and no one can time them. Most funds require a divesting/closing down after the 7th year. If the market goes down, i.e. Recession of 2008-13, then you might have to liquidate at a loss. We are allowing the fund to go on in perpetuity while allowing members the option to divest after year seven.
Most funds focus on one large-scale multi-unit project. There are risks in this. By allowing for diversification across the country, with multiple properties, it minimizes or lessens the risk as it is spread over many properties across many cities in the US.
You have the opportunity to invest in income-producing real estate for only $50K. Most real estate investing involves you having to "go at it alone” and invest over $150K to own a single property. When you see the results from your investment and what to invest more money in, you can do so.
The operational costs of managing the properties (upkeep, screening renters, etc.) can all add up quickly, by utilizing our company, Turn Two, to handle all the operational property needs we keep these costs low and controlled meaning more revenue for our investors.
Real Estate Savvy
Our team of seasoned real estate and finance experts spends copious amounts of time researching investments and making strategic solid moves. We do the hard work so our investors can collectively enjoy the fruits of our labor.