The U.S. residential real estate sector is the biggest asset class in the world, valued at approximately $36 trillion
Our investment proposal is centered on high returns generated by rental income, a variable that has shown sustained and favorable growth over the past 50 years.
We focus on homes that provide attractive rental income and are already stabilized and performing. The main income and expense figures are therefore already known from the day the investment is made, as opposed to more speculative investments where the return is primarily expected to come from future unknown events.
Currently, more than 35% of homes in the U.S are rented, and that number is increasing. During the past two decades, the lower savings rate for the middle class and the working class in the United States has made it more difficult to afford the down-payment for buying a home, and after 2008 access to mortgage loans has also decreased. Families thus rent for longer and this generates higher demand in the mid and lower segment rental markets, a trend that is not expected to reverse significantly in the near term.
Additionally, builders have been and still are focused in building higher value homes where construction margins and profit are more attractive, limiting supply in the affordable housing market.
This is why affordable or working-class housing offers an opportunity for those looking to obtain high rental returns in the United States
Our focus is in the central region of the United States, known as the Midwest, which has 68 million inhabitants and an economy the size of Germany or Japan. This region is home to approx. 130 of the fortune 500 companies.
There are a number of structural reasons to focus the real estate investments in the Midwest region:
Detroit is experiencing one of the greatest urban comebacks in U.S. history. Public and private investment, growing and diversifying employment, as well as an efficient public administration of the city have been the pillars for a sustained growth path of the second largest city in the Midwest, after Chicago.
Detroit offers excellent rent amounts per dollar invested, creating unique investment opportunities for those seeking high rental income streams.