Private and institutional investors are branching out into smaller markets to achieve higher returns.
Private and institutional investors are branching out into smaller markets to achieve higher returns. According to Forbes.com more than half (55%) of the apartment properties bought and sold for more than $1 million in 2017 were located in secondary markets which is up from 42% in 2010. Also according to Forbes.com there are a few key benefits:
- They are less volatile in downturns, which makes them particularly attractive late in the investment cycle.
- Deals in these markets are not overvalued and offer higher returns.
- They offer stronger growth potential due to a lower cost of living and less supply.
For portfolio diversification, Sharestates offers investment opportunities in secondary markets also. Here are a few properties recently funded by Sharestates, below.
This first property is located in Austin which is the capital of Texas and also one of the largest cities in the US.The city of Austin is about an hour and twenty minutes from San Antonio and about three hours from Houston. Austin is known for its live music scene, endless sunshine, natural beauty/outdoor adventures and the great balance of small town feel to big metropolis.
- Loan Size: $303,000
- Purchase Price: $295,000
- LTV: 72%
- LTC: 84%
- Average renovation budget: $67,200
- ARV: 68% or $466,000
The second property is in Saint Paul, the capital of Minnesota. Saint Paul has big city amenities like museums and sport stadiums but also a very midwestern feel. Separated by the Mississippi River, the Twin Cities (Minneapolis/Saint Paul) are considered one metropolitan area but actually include two unique cities, featuring downtown cosmopolitan cores surrounded by distinctive neighborhoods and suburban communities.
- Loan Size: $233,000
- Purchase Price: $206,847
- LTV: 76%
- LTC: 76%
- ARV: 66% or $351,000
The last property we’re highlighting is in Charlotte, North Carolina. Charlotte is the most populated city in North Carolina and has been ranked as one of the fasted growing cities from 2004 through 2014. There are many great reasons to live in Charlotte. The job market is booming with both the corporate headquarters of Bank of America and the the east coast hub of Wells Fargo located there. Charlotte has fantastic schools, and the quality of life is often cited as a reason for moving to the area with a cost of living below the national average by about 4%.
- Loan Size: $2,670,000
- Residential -Town House
- LTV: 64%
For more information about other properties Sharestates has funded or to submit your upcoming projects to get funding click HERE.