Our mission is simple, provide your family with real estate investments that generate secure, stable tax advantaged cash flow and equity growth. Earn cash income for today. Grow wealth for the future. So that you sleep well at night knowing your hard-earned capital, and your future, is secure.
Why Multifamily
Two basic factors drive multifamily real estate investment, the ongoing shortage of rental housing, and the position of multifamily as an essential need (food & shelter) that drives demand. Increasing demand in the face of essentially static supply (Class B) creates an almost unheard of opportunity for investment. Estimates of the shortage range from 4.3 Million to 7.3 Million units.
Static Supply (Class B)
Why not build more units? Nationally we are, but primarily in Class A or units with some government subsidy. Forecasts for the next few years are for between 320,000 and 400,000 new units to come on line.
Why not Class B? Too expensive. Recent new construction costs, in markets Mara Poling is active, were more than $200,000 per unit. Class B units are available for $100,000 to $150,000 per unit including additional renovation capital. Developers, and the lenders that support them, are unable to compete in Class B with new construction, so they focus on Class A instead. Some Class B construction does take place, although these are mostly government subsidized units that do not function at market rates.
Do not forget units removed from supply. 100,000 to 150,000 of the current 45 million rental units are removed from supply each year, many deconstructed to make way for new rental housing (Class A) or other uses.
Overall net new supply is growing by less than 300,000 a year, with almost none of that growth in Class B.
Growing Demand
Population growth, market migration, delayed home ownership, and housing affordability driven by interest rates and rising home prices, all contribute to increasing demand for rental units. Current demand is estimated to be 400,000 across all classes of rental properties.
Class B tenants are the backbone of the nation’s economy, including teachers and first responders. These jobs tend to be resilient during economic headwinds compared with more cyclical sectors.
Job losses in a recession will likely result in renters seeking to save money. Renters living in Class A apartments could save an average of about $540 per month by moving to a Class B apartment—a 30% savings.
The Result
Growing demand and a static supply, combined with an existing shortage of millions of units, makes a strong case for investment in multifamily real estate. With no solution to the imbalance on the horizon, now is a great time to add multifamily real estate to your portfolio.
Class B unit values for Mara Poling properties have more than doubled over the past 8 years. Cash distributed to investors over the same period ranged from 6% to 8% or more.
The supply demand imbalance is not the only factor that provides stability and security for your investment. Multifamily is unique among real estate investments.
Food & Shelter
Maslow said it best way back in 1954. People’s basic needs, including food and shelter, must be met before addressing any other need. Folks have to eat and they need a place to live. Multifamily real estate investors are in the shelter business.
Hospitality, office, retail, self-storage, and other real estate sectors – all great ways to invest in real estate. When investing for security and satiability, multifamily stands apart. When times get tough, and the economy operates on a cycle so there is always a recession coming, people prioritize food and shelter over $8 cups of coffee and new $1,000 smart phones.
Why Mara Poling
Our Commitment to You
Be of service to your family and others like yours where our skills and experience will make a difference in your financial life.
Provide your family with secure, stable multifamily investments that generate tax advantaged cash flow and equity growth.
Prioritize security and stability, then look to optimize returns.
Focus on multifamily real estate and the unique combination of risk moderation and return potential it provides.
Limit our client base to a size that enables a personal relationship with you and each family that entrusts us with these responsibilities.
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We Value What You Value
Stewardship – We are humbled by the responsibility you and others place in us and work diligently to be worthy of that
trust.
Transparency – You have worked hard building your investment capital and deserve to know where your money is and how it is performing.
Accountability – No 800 numbers or investor relations agents. When you have a question, you speak directly to the decision maker that manages your investment (Pat, Lauren, and John).
Data – Data drives our actions, from selecting markets to invest in, to deployment of capital, and what options exist when time to exit. It’s not gut or intuition, it’s all math.
We Invite You to Learn More
Inspect our portfolio of multifamily assets. Explore our offerings. Meet our team of professionals. Take advantage of the free content in The Learning Center. Let us know how we can be of service to you.