Direct Investment in Real Estate Offers Appealing Benefits

Investing Directly in Real Estate Offers Appealing Benefits

Bloomberg reported last week that Blackstone Group LP (BX) has spent $7.5 billion acquiring 40,000 houses in the past two years to create the largest single-family rental business in the U.S. states. Similarly, in April, the Business Journal also reported on nearly 850 South Florida residences Blackstone had bought over a seven-month period.

The story emphasizes that this type of hedge fund and private equity group control of the U.S. single-family home rental market is “unprecedented.” Business Journal sources estimate that, in Florida alone, affiliates of companies like Blackstone may together control as much as 15 percent of available rentals. The private-equity firm is now planning to sell bonds backed by lease payments and Deutsche Bank AG could soon be marketing $500 million in securities tied to the portfolio of rentals that Blackstone Group LP has acquired.  

Large corporations are making very decent profits in real estate and likewise you can do it with the appropriate guidance and diligence. It is necessary to estate that direct investments in real estate are serious business and are not for the casual investor. You need to be eager to do your homework and be ready to invest the time and energy required to be successful in your undertaking. Direct investments in real estate can have a higher payoff that the REITs (Real Estate Investment Trusts) but they also carry a higher level of risk and more work honestly speaking.

When investing, real estate is an area that most people have some understanding of and are likely to consider. Investing in real estate generally offers some appealing benefits. Those benefits include fairly predictable income (rent), some form of tax benefit (deprecation or the tax deduction of mortgage interest), some stability and of course some peace of mind.

Call me now to schedule a complete presentation of any project in Miami. Please contact me at 954.254.6085 or email me at JuanSolerRealtor@gmail.com 

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