Dear Fellow Investor,
We are in uncharted economic and geopolitical waters. Of that there can be no doubt.
The threat of a Trump impeachment...the trade war with China...massive corporate and consumer debt — these and more are all rattling the markets right now.
Add in the fact that the U.S. is in the midst of the longest economic expansion in history, and it seems obvious that a recession is not only inevitable but likely on our doorsteps at this very moment.
So we’re not surprised to see more and more reports are coming in of home prices dropping in markets across the country.
Real estate is due for a downturn
...But there are ways to profit during the cycle
The chorus screaming recession is getting louder and louder. As an investor, it can be hard to make sense of it all with all the mixed signals the economy is flashing. There are good signals like low unemployment...but the geopolitical storm brewing on all fronts is making investors nervous.
Should you be nervous? No.
Should you prepare? Yes.
Let us explain how to prepare for the impending recession by taking a page out of the ultra-high-net-worth investor (“UHNWI”) playbook.
You see, real estate has always been relied on by UHNWIs to shield against recession. But you’re saying, “What about the last recession? Real estate took a pounding.”
That’s absolutely true. But consider that the Financial Crisis was a unique situation that affected mostly single-family real estate — and that nosedive was directly caused by subprime mortgages that were unique to that era.
“What about reports of falling real estate prices,” you ask. Recent reports of falling prices have mostly been in major markets like Seattle, San Francisco and San Diego. Secondary markets continue to hold steady.
And we’re not talking about investing in single-family real estate for protection against a downturn. We’re talking about commercial real estate.
Sure, there are segments of commercial real estate, like retail and office, that are affected by economic downturns, but let’s focus on a segment that actually thrives in a downturn.
And that’s multi-family housing.
Because we’ve become a renter nation, the multi-family segment is thriving due to high demand and short supply.
And there is one segment of this arena where demand has consistently outstripped supply since the Financial Crisis, with demand only expected to grow during the next recession.
That segment is affordable housing.
Make no mistake: History shows that the affordable housing segment will not only survive the next recession but it will thrive. And the one sub-segment we love is mobile home communities (“MHCs”).
Investors choose MHCs because they’re in short supply and municipalities across the U.S. are refusing to permit zoning for new MHCs, fearful of driving down overall real estate prices because of the associated stigmas.
Lack of new supply is perfect for us, because the MHC market is still flush with value-add opportunities. With consistent passive income backed by a hard asset, investment in MHCs could not only help you weather the next storm but make you money.
You should consider MHCs for your next investment — and you don’t have to go it alone.
Here at Four Peaks, we’ve been investing in and reaping rich returns from MHCs for years.
By partnering with us, you can take advantage of our expertise, personnel, processes and infrastructure to profit from the MHC sector without the headaches of being a landlord.
It’s not too late to avoid economic disaster when the gathering downturn clouds hit a full-blown recession.
With advantages like these, shouldn’t you look into MHCs now?
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