STRATEGY
TRENDS
Demographic Shifts Are Key to Creative REI Strategies
BEING MINDFUL OF SOCIETAL TRENDS CAN GET YOU AHEAD OF THE CURVE
by Bruce McNeilage
hen friends ask me for invest- ment advice, I usually say the
Of course, there are a lot of people who are not content just playing it safe. Some people want to hit the grand slam home run and end up with a beachfront condo in Maui. Those folks are going to have to take a few more risks. And, they’re going to have to be a little bit more creative, coming up with strategies that are apart from the everyday and finding investments that are a little ahead of the curve. For my company Kinloch Part- ners, that has always meant ana- lyzing existing market trends and
finding a successful niche before it becomes mainstream. That philoso- phy led us to two innovative strat- egies: one was Rent-to-Own, the other Build-to-Rent. We entered the Atlanta mar- ket shortly after the recession in 2010. With credit markets frozen, there were a lot of people with solid incomes who simply couldn’t obtain a loan. Though economic conditions were brutal at the time, we were confident the stock market would rebound and credit markets would open back up. That meant there
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same thing. Something as simple as a five-home rental portfolio can be the difference between leading the good life or just getting by in your sunset years. Real estate investment is a rela- tively safe strategy. It doesn’t take a lot of capital to get started (my first investment was $9,800 out of pock- et), renters can create positive cash - flow while you pay down principal, and in most cycles, property values usually go up.
64 | think realty magazine :: may 2021
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