Investors are turning to real estate en masse.
“About 77 percent of investors with at least $1 million in assets own real estate…” reports Bloomberg on a Morgan Stanley finding. “Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year.”
The growing rotation makes perfect sense….
Bonds have been wallowing in a zero-interest
rate policy environment for the better part of the last decade. There aren’t any clear signs of it letting up, and Treasury yields are still at historic lows. Low-risk bonds simply aren’t the viable option they once were.
Equities have benefited mightily from the low yields, and they’ve pushed higher and higher, breaking records along the way. The S&P 500 is up around 20% over the last year. Now, however, many investors are worried about a pullback, fearing an overvalued stock market, or simply limited upside.
Real estate, in the meantime, has moved well past the jitters of the recovery stage. The economy is heading in the right direction. Employment is up. Consumers are spending again. For commercial property, this is a boon.
“U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009,” says Green Street Advisors, quoted by Bloomberg.
In the face of a bond-yield graveyard, plus growing vertigo in the equities market, is it any wonder why investors are moving in droves to CRE?
The Most Efficient Platform Around
Commercial property, on average, doles out more cash than stocks and bonds with comparable risk profiles, often distributing in the range of 6% to 12% annually. It used to be “who you knew” that got you through the front door of quality CRE investment and access to these income streams.
Times have changed. There’s more access now than ever. New Online CRE platforms are launching regularly. The choices abound, and it’s down to picking the right one to throw in with.
RealCrowd’s goal is to make that choice clear by being the most efficient way to access and serve the best CRE opportunities around. Our platform and technology is built with that single aim in mind.
RealCrowd is the most widely-used institutional CRE platform connecting accredited investors directly with quality operators — no up-front middle-man fees, no participation of profits, no asset management fees — a pure connection between investor and real estate operator/developer. RealCrowd is the future of real estate syndication and investment.
We’re determined to keep excellent operators driving quality opportunities to investors using our network. As the number of institutional, family offices and high net-worth investors landing on our doorstep grows, we want RealCrowd to be their first and last stop.
*If you like this post, be sure to enroll in our free six week course on the fundamentals of commercial real estate investing — Enroll Now.*