Economic uncertainty has been a major talking point across all industries over the last few months. The federal reserve has steadily been increasing interest rates in an effort to combat inflation, while supply chains have suffered due to countless factors, most notably the Russia-Ukraine war and renewed COVID-19 lockdowns in China. 

Just like the public equity sector, real estate has been adjusting to the current economic and financial climate after a period of unprecedented growth. So what changes have we seen in the private real estate sector?

As home prices have slightly decreased, new housing starts have declined by nearly 10% in the past few months in light of runaway inflation and higher mortgage rates.

If you have recently seen our social media profiles, website, or are a member of our newsletter, you may have already noticed that Rise Invest has officially rebranded as Breneman Capital.

What are the benefits of investing in real estate?

Many people aspire to invest in and own real estate as they know it’s a major creator of multi-generational wealth, thanks to its annual income returns & the prospects of capital growth. There are a variety of ways in which investors may participate in the sector, so let's have a look at four of the most favored ways in which real estate investments may be accomplished:

The 1031 Exchange deferred tax incentive is a tax incentive scheme uniquely available to real estate. Upon the sale of a property, it allows the owner to defer the realization of capital gains tax ("CGT”) and depreciation recapture tax (“DRT”).

Making appropriate underwriting assumptions before a property is acquired can be highly fraught. There are multitude of variable factors which need to be taken into account, both macro and micro, when assessing the feasibility of a project—whether it can meet the stakeholder’s target returns, if the projections prove to be too optimistic or conservative, and if it a sound underwriting proposition.

From offices, to multifamily, to hospitality—there are very different product types for investors looking to own commercial real estate. To be a better investor, one must understand their in’s and out’s.

Any commitment to invest in real estate will depend on the decision-makers overall investment objectives, financial situation and acceptance of risk. Such decision may also be affected by the holding period or length of time it is intended to own the property asset in order to achieve the required investment returns

Broadly speaking, there are four types of real estate investment strategies which investors adopt, with a key driver for choice being the position of the strategy on the risk-return spectrum. However, some of these strategies do overlap depending upon how a particular deal may be classified, or on the particular property being analyzed.

There are many factors to take into account when deciding what percentage of an investment portfolio should be invested in real estate.

For any investor looking to maximize their returns, whether these be investments in the real estate market or in stocks, they will almost certainly be keeping a very close watch on key economic indicators in so far as they relate to the US economy.

This is especially so over the last 5-6 months when investors’ attention has shifted away from the daily updates on the pandemic and other headline news, to note that inflation has again become a hot topic as the Federal Reserve grapples with the economic fallout of the pandemic.

Breneman Capital believes that Single Family Residences can provide investors a unique opportunity and approach to investing in multifamily real estate, and is looking to acquire communities of SFR’s in the Phoenix metropolitan area.

Breneman Capital is a data-driven multifamily investment firm, and our data science team obsesses over identifying the best data to forecast critical, multifamily performance metrics years into the future. Our goal is to fine-tune and backtest our models for predictive accuracy perpetually—we are always hypothesizing factors that may drive performance

At Breneman Capital, data and analytics are core to our philosophy. We leverage original insights to reshape our traditional understanding of real estate to make better-informed decisions and deliver superior investment results. Our data science team strives to aggregate the best data available and design industry-leading predictive technology…

At Breneman Capital, we see thousands of deals a year. When a stabilized deal comes through the door that is located in a market we are familiar with, we do not waste much time in deciding whether we will pursue a more in-depth analysis of a potential investment.

Market & submarket research is the crucial first step in multifamily investing. It is essential to believe in the area a property resides in just as much as the property itself, as external factors will always influence the performance of an investment.