This opportunity is projected to provide investors with strong returns and help build long-term wealth through investing in value-based, community-oriented real estate developments.
MINNEAPOLIS, February 27, 2024 (Newswire.com)
Centra Capital Partners is proud to announce its inaugural project, The Meadows at Hugo, is now open to the first wave of fundraising. Centra Capital Partners is designed to provide investors unique opportunities to invest in individual real estate projects with an initial focus on residential housing in the Minneapolis area.
The Meadows at Hugo is in a growing community just outside the Minneapolis-St. Paul metro. It includes an 87-lot, single-family home ground-up development offering great schools, abundant open spaces, paved trails and numerous lakes. With a projected IRR exceeding 17% and an attractive 8% preferred return, this project stands out as a testament to Centra’s commitment to delivering value to investors.
“No one wants to wait 6-8 years to see if their investment will perform. This project has the potential for investors to see gains within the first two years,” says Dale Wills, CEO and founder of Centra Capital Partners.
The National Association of Realtors states that historically, a six-month supply of homes is associated with a moderate price appreciation. As of January 2024, supply is at just 1.7 months in the Twin Cities. The Twin Cities region is a growing market, with 657,000 people expected to move to the area between 2020-2050. Wills remarks, “Now is a great time to be investing in real estate in Minnesota. There’s a huge need for housing and Centra has the knowledge and manpower to bring those homes to market quickly and efficiently.”
Centra Capital Partners is a new branch of Centra Companies, a trusted name in the construction and real estate development industry. Centra has a proven track record of success with more than 1,500 homes built and $500MM+ in project value to date. With more than 120 years of combined real estate experience, the Centra team has learned how to improve processes, focusing on lean operation practices, to deliver superior results to its stakeholders.
The Centra Capital Partners team plans to provide up to six unique real estate investment opportunities in 2024, the second one being a new 110-unit detached townhome development in the city of Ramsey called Waterfront Village. Interested investors can invest in these projects or schedule a call for more information by visiting the Centra Capital Partners website.
About Centra Capital Partners:
Centra Capital Partners creates thriving communities across the United States by partnering with accredited investors to build long-term wealth in value-based, community-oriented real estate developments. The Centra Capital Partners team has more than 120 years of combined real estate experience, making it a trusted partner in the real estate development industry. Its “investor-first” approach, commitment to transparency in all aspects of operations and long-term vision allow it to maximize investor returns while protecting its partners’ investments.
Source: Centra Capital Partners
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Mixing business with friendship is almost always a tricky proposition. One college student had to learn that the hard way when she tried her hand at being a landlord.
Reddit user, EqualBudget_3179, recently posted a cautionary tale on the site after her uncle let her live rent-free in one of his investment properties and collect rent from three other tenants to help pay for her expenses. EqualBudget_3179 offered their friends these extra bedrooms for $700 per month each – a good $200 to $800 cheaper than other houses near her college. They all immediately said yes. But when one of them asked about the total cost of rent, the friends freaked out when they found out the arrangement with her uncle.
“That blew up in my face because now every [sic] one of my friends [is] calling me greedy for charging them rent then pocketing the money,” EqualBudget_3179 writes in her post. The Redditor goes on to write that she ultimately decided to ask them to move out.
The trials and tribulations of being a landlord might be worth the long-term financial gains for some, but if you’d rather skip out, here are some different investing options you can try.
Grocery-anchored real estate investing
For starters, private equity firm First National Realty Partners* gives you access to the lucrative potential of necessity-based commercial real estate. With FNRP’s platform, accredited investors can invest in institutional-quality, grocery-anchored real estate investments* without the leg work of finding deals on their own.
Since the investments are necessity-based, they tend to perform well during times of economic volatility. And of course, it won’t be your job to deal with tenant complaints and maintenance issues.
If you’re an accredited investor, but commercial real estate isn’t your thing, you can also check out DLP Capital* — a private financial services and real estate investment firm — that makes investing in REITs easily accessible* so you can benefit from high-return investments, solid dividends and the potential for moderate, long-term capital appreciation.
DLP Capital’s housing fund was created with the goal of improving communities that produce a lot of rental income through their acquisition and management of these rental homes. So, not only are you investing in a worthy asset, you’re investing in its community.
For those of you who are non-accredited investors, don’t worry, there are accessible options for you to get your hands in the real estate game too.
Read more: Here’s how much the average 60-year-old American holds in retirement savings — how does your nest egg compare?
Invest in rental and vacation properties
With Arrived’s* online platform, you can invest in shares of rental homes and vacation rentals.
Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy. With Arrived, you can start investing in real estate with just $100*.
If you’ve got a particular city in mind — perhaps one you dreamed of moving to one day before increased cost of living made these cities unaffordable to many people — you’re in luck. With Cityfunds by Nada*, you can now own a piece of a desirable U.S. city without actually buying property.
Buy a piece of your favorite city
Cityfunds by Nada is an online investment platform that makes diversified portfolios of owner-occupied properties in top U.S. cities accessible without you having to break the bank or play landlord.
For as little as $500*, you gain immediate exposure to multiple properties through Nada’s Cityfunds in cities like Austin, Dallas, Miami, Tampa, Denver, Phoenix and Nashville.
Join Nada’s 10,000+ users today* and get your hands on owning a part of the $20 trillion home equity market for a single city.
If you think taking on the mantle of landlord is too much, you have plenty of accessible options to build the real estate portfolio of your dreams.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Real-estate investing can be an effective way to generate passive income — if your property is cash-flow positive, meaning your monthly rental income exceeds monthly costs.
Business Insider has spoken with a handful of real-estate investors who own profitable properties and asked what they look for in the acquisition phase.
Here are three of their top strategies. Business Insider verified each investor’s property ownership claims.
1. Go for multi-family properties
A multi-family is a single building divided to house more than one family living separately and ranges from duplexes to triplexes and fourplexes. Buildings with four or more units are typically considered commercial real estate properties.
These types of properties offer some major benefits, according to financially independent investor Dana Bull.
There’s what she calls “the acquisition discount.” If you buy a multi-family, you’ll likely pay less than if you were to go out and buy two to four separate condos or apartments.
“Say you’re buying a three-family building that is $900,000,” she said. “If you were to buy each of those as condos, maybe you’d be paying a total of over $1 million. If you buy them all together, you get that discount.”
You also get economies of scale — the cost savings that come with larger operations — when you own a multi-family. Think about the maintenance required for a multi-family home versus a single-family home, said Bull, who owns multi-families in New England: “If you buy a three-family and the roof goes out, you only have one roof to replace. You have one driveway to shovel. You have the shared hallways to take care of.” That will lower your maintenance costs and, ultimately, put more money in your pocket.
Owning a duplex or triplex also gives you the ability to “house hack,” which many rookie investors use to get their start in real estate. House hacking a duplex would mean living in one of the units and renting the second unit. The idea is that your tenant’s rent will cover some (or all) of your housing costs.
It’s a low-risk way to dip your toe into real-estate investing and see if you even like it. If you enjoy buying, renting, and managing tenants and want to expand your portfolio from there, you then repeat the process, but at different levels of expense and effort.
Note that not all markets have an abundance of multi-family properties.
If this type of property isn’t prevalent in your area, look for something with an unfinished basement that you can turn into another unit and rent, or even a home with multiple rooms that you could rent.
2. Select an area with high rent demand
It’s important to take a step back and consider your market as a whole: Do people rent in the area you’re considering investing in?
“You need tenants,” emphasized Bull. “They are the lifeblood of your business. They’re the ones that are paying for everything.”
To understand rent demand, investor Nyasia Casey looks at days on market when looking at rental listings. This gives her an idea of whether she’ll be able to fill a property with a tenant quickly. If you notice a lot of vacancies in the area or rentals sitting on the market for weeks or months, there might not be a strong enough rental demand in the area.
Don’t assume that the pricey part of town is where renters are looking, said Casey: “For a lot of first-time investors, their knee-jerk reaction is, ‘I’m going to buy in the nicest town that I can afford.’ Well, that town may not be primed as a rental community. There might be more single-family homes and people who own.”
Look at job opportunities in the area, too, noted Bull: “You want people to stay in the community. I would be very hesitant to invest in an area that just has one big employer. If that company goes under, that’s a problem.”
3. Look for the ugly houses
“A rental doesn’t need to be 100% pristine,” said Casey, whose strategy is to buy undervalued properties, renovate them, and fill them with long-term tenants. Her first rental in Baltimore cash-flowed $1,000 a month. “When you’re looking for an investment property, you’re looking for something really under market that you can renovate.”
She advises looking at listings on sites like Zillow and Redfin and finding “the really ugly houses,” she said. Then, contact the agent associated with that property.
While that specific property may not be the right fit for you, “that agent understands and works with distressed properties,” said Casey, and they could be a good agent to work with.
You’ll want to ask them questions like, “Do you get other properties like this? Do you work with off-market properties?” she said. “Agents are constantly reaching out to sellers, so let them be the ones to bring you properties or let them be the ones to work those off-market leads.”