Two real estate investors with almost $2B in capital are looking to double their investments. How are they doing so well? Why are they so bullish on the real estate market now?
Surviving & Thriving
There are very, very few people in the real estate industry today that have been in since before 2008. In fact, the vast majority of real estate ‘gurus’, trainers, and actors on ‘reality’ TV shows are all newbies to the game too. Some are doing very well right now, and are making good sums of money. Yet, the few made it through the last big turn, and the few that have thrived since then have a great perspective on market, and the cash to make great moves. So, what are they doing now? What’s their take on the market?
Billions
Peter Wells and Marcel Arsenault are two of the small group of investors who have made it through the downturn. They sold out much of their portfolio prior to the crash when they saw buyers starting to line up at new construction properties with no money down home loans. Now they have bounced back with around $1.6B in assets, a global portfolio, and $1.8B in capital to put to work in the market. They intend to double down, and put at least $500M into play this year.
A Different View of the Market
This investor duo looks at the business a little differently than most. There are many out there with a very small, and short term view. They haven’t seen or experienced the changes in the market that the veterans have. There can certainly be benefits of being new, of being more optimistic, of being passionate about the hustle and making big wins daily. Yet, it can be intelligent to look at what others are measuring, and focusing on. Especially when they are displaying the types of results you may like to have too.
One of the things that Peter and Marcel do different is taking a really big macroeconomic view of the market. They are constantly on the lookout for what others are missing. They are looking to avoid blunders, and to increase market share. They are looking at underserved markets, areas where days on market are short, and where there is still profit to be made, as well as where they can add more value than those currently in the market.
Another part of this is taking a long-term view. Many investors are only thinking about this week, this month, and maybe this year. If you still want to be in business, and realizing great real estate investment returns in 5 years, 10 years, and 20 years, you need to be thinking that far ahead. Are you making investments with those time frames in mind?
People
People play a big role in the market, in how well your business does, and how well the businesses you partner with continue to perform. According to Inc. these two investors address this by looking for customer service gaps and needs. By seeking investment partners who are focused on their work, and by giving and requesting extreme transparency.
Summary
Marcel and Peter believe the American property market is going to experience pent-up demand through 2020 due to 84M millennials and 80M boomers seeking to trade housing, while the demolition of old housing stock has reduced current inventory levels.
Ultimately, the point here is that there are some very well-funded investors like this out there, looking to put capital to work. They need people in local markets to help. This is a great time for newer real estate investors, and those that begin building in their long-term infrastructure now, and who are watching the right things can enjoy many great years of real estate rewards.
