Do you have a strategy that includes real estate investing in 2019? If you don’t, you might want to consider a strategy laid out by MYND CEO and co-founder Doug Brien. Brien, who’s also a seasoned real estate investor, shared his investing game plan in a December National Real Estate Investor article.
Brien advocates for a long-term hold strategy. “In my opinion, a long-time horizon should be incorporated into any investor’s strategy,” he said.
No matter which property sectors you are considering, real estate investments should be weighed against rising interest rates and the prolonged economic expansion.
“For deals to make sense, investors will need to make sure cap rates remain high enough to balance out rising interest rates,” Brien told NREI.
Consider Small Residential Properties
High net-worth investors should consider multifamily in 2019, particularly “small residential” assets in urban infill locations. The majority of Americans live in small residential properties, which have 50 units or less. Combined, rent rolls for small residential properties total $430 billion a year, making it twice as big as the hotel sector.
Urban infill locations such as San Francisco’s East Bay or San Diego, where rental demand should remain strong, are great places for real estate investing. “There tends to be more efficiency in this mom-and-pop market, meaning investors are less sophisticated and more deals can be found,” he noted.
For more in-depth real estate investing predictions, download “The Future of Real Estate” with Doug Brien.