SAFEGUARD 2016 UPDATE
SAFEGUARD 2016 UPDATE
The Stock Market is volatile, but Rental Real Estate is stable and growing!
The stock market is increasingly volatile as crude oil prices are plummeting and China’s economy is faltering. A global economic slowdown is in full swing and there is little anyone can do, except ride it out.
Yes, in 2016, things are going to be rather challenging for Wall Street traders and institutional investors who have no place to invest money, except the stock market.
What does all this stock market upheaval mean for real estate investors and private lenders? For most of us, it doesn’t mean much. The “real” economy and Wall Street are not nearly as connected as everyone imagines.
Real estate, especially income producing real estate, is doing quite well and is expected to continue to do even better throughout 2016 and into the future.
So, what’s driving the single-family rental market? Open your favorite browser and type in: “2016 single family rental investments”. You’ll find plenty of articles leading to the following conclusions:
Top 5 reasons to invest in rental real estate:
Home ownership rates have fallen to the lowest level since 1967.
Demand for rental property is booming and rents are increasing dramatically.
Vacancy rates for rental units reached an all-time low in the summer of 2015.
More and more people are wanting to rent single family homes, not apartments.
First time home buyer share of single family home sales is at all-time low of 32%.
Top 5 reasons people are choosing to rent rather than buy:
The 2008 crash created fear among a large number of people because of someone close to them losing their home. That fear still persists.
Many people experienced foreclosures and short-sales which damaged their credit to the point of not being able to obtain a mortgage.
Smaller home builders have not been able to borrow money from traditional lenders and therefore have not been able to meet the demand for affordable homes.
Student debt has prevented would-be first time home buyers from buying homes.
Emphasis is on mobility and downsizing. Older individuals are opting to move out of large homes and into condos and apartments. Prospective home buyers don’t want the baby boom McMansions.
Safeguard Growth
Since the time you set up a Self Directed IRA or Solo 401(k) with Safeguard Advisors, you have been receiving 3 or 4 emails and one or two postcards every year from Safeguard Capital Partners reminding you of the opportunity to acquire 1st lien trust deed mortgage notes for single family homes. A lot of folks have responded.
Currently, Safeguard clients hold more than 500 of these private loans representing about $25,000,000 on roughly $40,000,000 of value in single family rental properties.
1st lien trust deed lending is a great way to conservatively diversify holdings in your Self Directed IRA, Solo 401(k), or personal funds. On average, the lending options we provide yield a 9% annualized rate of return.
Are there risks? Yes, but the risk is minimized because real estate always has “real” value, unlike paper assets tied to the stock market that can disappear overnight.
In 2015, Safeguard added several new local partners who have been highly successful in their local markets with acquiring, rehabbing and managing single family homes.
Following is a list of cities and the range of private mortgages/trust deeds available:
Jackson, MS $27,000 to $40,000
Kansas City, MO $35,000 to $50,000
Toledo, OH $45,000 to $70,000
Orlando, FL $55,000 to $70,000
Chicago, IL $75,000 to $90,000
San Antonio, TX $85,000 to $140,000 *
The notes in San Antonio are tied to new construction homes and are available on a limited basis.
Is 2016 the year to become a private lender for single family homes?
For clients who already hold one or more of these private loans, it’s definitely time to add more to your portfolio. For those of you who have been window shopping, now is the time to take the first step.
For detailed information regarding private lending on single family homes, please go to our FAQ link on the website www.SafeguardCP.com.
New Safeguard Office Established
In addition to our corporate offices in Vancouver, WA, Safeguard has established a processing office in Sanford, Florida about 15 miles north of Orlando.
Brandon Reed, Director of Operations, and his staff occupy the office and handle all the details related to 1st lien trust deed acquisition and processing.
Please contact Brandon regarding availability of 1st lien trust deed notes. Or, contact Corey Fleetwood, Client Relations Manager in Vancouver, WA to ask questions or receive receive a short presentation of how the process actually works.
Brandon Reed
Director of Operations
brandon@safeguardcapitalpartners.com
877-280-5771 x 240
Corey Fleetwood
Client Relations Manager
corey@safeguardcapitalpartners.com
877-280-5771 x 220
Have a prosperous New Year!
Robert Hubbard
Managing Director
Safeguard Capital Partners
A Morningstar Holdings, LLC Company
www.SafeguardCapitalPartners.com
Office: 877-280-5771 x225
Email: robert@safeguardcapitalpartners.com
