Where we invest

The Midwest: the most attractive real estate market per invested dollar.

The U.S. residential real estate sector is the biggest asset class in the world, valued at approximately $36 trillion

1. Residential Leases: Predictability and sustained returns

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.

Source: US Federal Reserve Bank of St. Louis.
Data series reflect the primary residence
rental index 1987=100 (Rental Cost Index).

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.

2. Homes in the affordable housing segment in the Midwest: The big opportunity.

Affordable Housing: where the laws of supply and demand favor investors.

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

Midwest: a region experiencing a great comeback.

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:

  • 1 Highest rent yields per dollar invested.
  • 2 Strong and growing job market, especially in manufacturing, education and health care.
  • 3 Growing political importance since this region has been key for the last three presidential elections. Hence, both major political parties seek to incentivize economic growth in the region.

3. Detroit, an appealing
city to invest.

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.