"With the computer and stuff, the difference between a rich guy and a poor guy, to me, is nothing. Because I don't like big houses, I don't drive a car, so you know, I just live in a small apartment and I have my computer, which is really cool."
- Norm MacDonald
Multifamily
We Have the Power Today
to Change Tomorrow!
The above quote exemplifies the growing sentiment among younger generations. Homeownership isn't declining merely because of affordability issues. It is also due to the changing attitudes and lifestyle choices of young people. I believe the demand for homeownership will continue to decline due to a number of factors for the next 20 years. We are witnessing the birth of the renter-class generations, many of whom will embrace that decision by choice.
For many of the same reasons we are interested in Self-Storage, we are forecasting solid growth in multifamily and related asset classes. Let’s face it. We are experiencing an affordable housing crisis in this country and it’s largely due to a lack of inventory in this sector. During the last boom in real estate, the main focus of developers was mid to high end single family homes and A-class multifamily. For better or for worse, that’s what was demanded and that’s what was provided. Now that the economy is faltering once again, and many people are being forced to downsize to more affordable housing options, we are finding that there is just not enough affordable housing to fill the need. This is only going to get worse as time goes on and the recession continues to worsen.
For this reason, we are finding many investors looking into creative ways of using the existing inventory, to provide more affordable housing. For example, coliving is becoming popular in and around major city centers. While not technically falling under the “affordable housing” umbrella, the concept is catching on among younger people looking for more stability and a fixed pricing structure for housing that makes it easier for them to budget on a fixed income.
But with all the creative ways investors are coming up with to restructure or repurpose existing inventory, none of these concepts are enough to satisfy the growing need for true affordable housing.
With a growing need for affordable housing and a lagging supply of affordable housing for the foreseeable future, we know this asset class is going to be strong for at least the next decade. So the sector of Multifamily we are focused on is mismanaged C to B buildings in C+ and B+ neighborhoods. These are the more affordable priced units that need some work to bring them up to market value rents and become fully occupied and stabilized.
RPL Capital Ventures does not provide investment advisory services. Any information communicated through this website or other means should not be taken as investment guidance. The investment options we offer are exclusively private security offerings. These are not available in the public market and come with certain holding periods, suitable for those who do not require immediate access to their funds. It's important to note that these private placements are not covered by FDIC insurance or any other government protection, nor are they assured by RPL Capital Ventures. They inherently involve the risk of a decrease in value. Neither the SEC nor any state or federal securities regulatory bodies have endorsed these investment opportunities. The financial projections and expected returns presented on this site are hypothetical and not based on actual investment performance, hence, they do not assure future results. Such estimates should not be the sole factor in making investment decisions. While we endeavor to source our information from what we deem reliable avenues, we do not vouch for its accuracy or completeness and do not take responsibility for any errors. Only the official offering documents, detailing the risks, fees, and expenses, are reliable for making or soliciting investments. We strongly recommend that investors engage in comprehensive due diligence, including consulting with financial, legal, and tax advisors, to gain a full understanding of the risks involved in these investment opportunities. Investments in private placements are highly risky, potentially leading to a complete loss of investment, and are generally characterized by limited liquidity. Therefore, it is crucial for investors to seek advice from their respective professional advisors prior to committing to any private placement investments.