The Chicago Tribune ran a story this morning which spoke about how many Americans are now forgoing homeownership in favor of renting. The demographic of Americans driving this demand for rentals is wide and varied. Obviously MACK Companies in a unique position to benefit from such a trend but we also feel very grateful that we can provide the housing stock necessary for such a demand. “The demand exceeds the supply among single-family-house rentals,” said Eric Workman, our Vice President of Sales.
An article came out this week speaking to home prices rising nationally across the country. Invariably the question has been placed to MACK, “Is that a good thing for your business?” … and the answer is Of Course!
At MACK we have a two mantras that we run our business off of. If you’ve been to our office, listened to our radio interviews and webinars or attended a presentation, you’ve heard them both – over and over again! The first is that “Brick and mortar never made a mistake”. The second, and one we’re going to focus on today, is –Wealth in real estate is made through equity, not through cash flow.
Eric Workman, MACK Co’s Vice President of Sales recently held a webinar for Australian investors about our twenty three plus years of industry experience, the market, and available cash flow properties. It just goes to show that investors the world over are very interested in MACK’s unique investment opportunities.
There is more to it than buying at a great price for a foreclosed property to become a positive, cash flowing investment. In fact, price is not even the most important criteria to a successful real estate investment property.
Recently The Chicago Tribune ran the article “Filling empty homes – A promising idea to get renters into foreclosed housing”. In it the author gives his opinion on the news that has been percolating lately that the government is going to sell bulk REO’s to the private sector and encourage investors to make them long term rentals. (Sounds like a company we know!)
…to your investment strategy.
Question: Now that you are such a large company, why do you still focus your investment dollars on single-family residential properties? Don’t you want to get into the commercial realm?
Recently the team at CoreLogic, one of the nations premier Real Estate research firms, released a report on the lessening of shadow inventory in the United States. Shadow Inventory is the
number of homes that are either seriously delinquent or in the process of foreclosure. At MACK,
we see this as a good thing!