LEARN HOW TO INVEST IN AFFORDABLE HOUSING
How do investors make money on affordable housing?
Affordable housing investments offer a few different ways to make money: The most common way is to generate income through rental income. This is done by renting the property to tenants and collecting monthly rent payments. Another way to make money from these types of investments is to sell the property for a profit.
Helping solve the affordable housing crisis.
Affordable housing continues to be one of the top issues for the U.S. housing market. Prior to the housing market boom of the last two years, there was an estimated shortage of seven million affordable homes. But with the last two years of record home price and rental growth, the gap in affordable housing supply has only widened.
Thankfully, there are ways to invest in affordable housing without compromising your bottom line. Here are 10 ways to invest in affordable housing and become a part of the solution.
1. Invest in private funds or REITs focused on affordable housing
You don’t have to own or rent real estate to participate in affordable housing. Thankfully, several real estate funds and private real estate investment trusts (REITs) focus on affordable housing.
2. Invest in senior housing REITs
Many people aren’t aware that the growing generation of people 65 and older is among the most cost-burdened when it comes to housing. Healthcare REITs can offer an array of senior housing solutions to help reduce the housing burden for seniors by adding inventory and delivering more affordable units to choose from. Public REITs like Omega Healthcare (NYSE:OHI) largely serve Medicaid and Medicare patients in senior housing communities and skilled nursing facilities.
3. Invest in Sun Communities
Fractional investing is another great option for those wanting to invest in a specific property or opportunity. Using a crowdfunding platform like Cadra or Crowd Street, investors can pool funds to invest in a fraction of an affordable housing property.
Many people think they have to sacrifice their return to participate in affordable housing, but thanks to several local and federal programs, landlords can receive subsidies to offset the difference in earnings. The Low-Income Housing Tax Credit (LIHTC), for example, pays investors for developing or renting units to low-income households.8. Become part of the Section 8 program
Investors can also rent to those participating in the Federal Section 8 voucher program. Through Section 8, the government helps subsidize the difference in market rent and what the tenant can pay, sending the landlord a check each month without reducing the rental amount charged.
9. Look into local programs
Local tax credits and programs often can be used in conjunction with federal programs to help offset development costs or losses in revenue that may be incurred from having a mixed-income or low-income housing property. Check with your county’s housing authority to see what programs might be available to you.
10. Don’t make dramatic rental increases
Incremental rental increases are a part of the business. You should adjust your rent not just to reflect changes in costs like rising property taxes or insurance but also to be closer in line with market rent.
However, dramatic jumps in rental rates, particularly for renewing tenants, make housing unaffordable and can contribute to higher rates of homelessness. The ideal range for annual rent increases is between 2% and 5%. However, if the rent has grown tremendously or high inflation has pushed your costs higher, you can adjust accordingly — just try to stay below 10%.
What if SIMM CAPITAL could show you how it’s done
Want to earn monthly passive income through real estate that’s all GUARANTEED by the government?
Then investing into Section 8 affordable housing is the key to your success.
You would learn the following:
How to identify the BEST Section 8 Cities to buy in
My criteria for buying goldmine properties that will cash flow.
How to buy S8 units with poor or no credit with little money down.
All of this is created by Mat Simmons, CEO and Founder of SIMM Capital. A $328 million real estate investment firm. They have built a MASSIVE portfolio of Section 8 affordable housing homes that generates over $1,000,000 a month in gross rent income. We invite you to learn how you can get started doing the exact same strategy yourself and skip all the pitfalls that cost you time and money!!
To Learn more .. follow the link to sign up !
Section 8 Wealth w/ Mat Simmons (s8wealth.com)