Invest in the Midwest is a platform for investors looking to create a real estate rental portfolio while avoiding all of the responsibilities that comes along with it. We're not a hedge fund, or a REIT, we are investors specializing in building & managing cash flowing portfolios in the Midwest for investors worldwide! Investing in affordable markets has been proven to lead to greater cash flow.
An affordable market is one where the average property value is three or four times the average income. In non-affordable markets such as the Bay Area, Los Angeles, or New York City home prices are more than ten times the average income, increasing risk and decreasing cash flow.
Many of our properties comes with tenants already in place so you start earning income from day one.
A steady 10%-12% cap rate along with appreciation can lead to long term wealth not only for you but for your heirs.
Our property management teams are available 24/7 so you never have to get involved.
Location, Location, Location
If you're an investor who refuses to follow the mass crowds of folks flooding East & West coast markets, I invite you to capitalize on the untapped goldmine known as the Midwest. The Midwest is where all the real estate action is. Wake up and realize that when people flood an area, prices skyrocket. The average investor will not believe how far their money can go in Midwestern states. You’ll end up spending approximately one-sixth of what you’ll spend on property in any area on the East or West Coast.
Now, it may have crossed your mind, why exactly is investing on the East and West Coast such a bad idea? One obvious reason is because large hedge funds raise billions of dollars and buy up tons of available properties. They essentially buy up all of the good deals. There are absolutely no good deals left, and the few that are available are often selling for over the appraised value. Right now, you'll be paying top dollar and getting a horrible ROI.
We have investment portfolios available starting $250,000 generating potential rents of $4,000-$5,000 monthly. Owning commercial property has proven to be even more lucrative in today's market.
No need to be a landlord
Let us manage your entire portfolio using our affiliate management companies that are committed to keeping your entire portfolio professionally managed and maintained. Our managers are available 24 hours a day, and seven days a week so you never have to get involved. We have a network of top-notch property inspectors, contractors, title companies and real estate attorneys all working together to make Investing in the Midwest a breeze!
Enhance Investment Portfolio
If you're an investor in the Bay Area or another inflated housing market, you're probably considering an out-of-state investment property. Unfortunately in costly cities many real estate investors are priced out of the market, and not able to enjoy the wonderful benefits of owning investment property.
Even the best investment portfolios often experience loss at some point. By strategically diversifying investment assets in different markets investors can mitigate losses and build a more stable portfolio.
Will This Aid With Retirement?
Absolutely! Investing in the Midwest is a great retirement plan. A steady 10%-12% cap rate along with appreciation can lead to long term wealth not only for you but for your heirs.
Is Your Cap Rate Attractive?
I've serviced many clients who were simply dissatisfied with their rate of return. Considering the amount of money that you paid for your property your cap rate means everything. A landlord should expect a cap rate for a rental to be around 10%-12% in an affordable market. In the Bay Area property value has increased as a result of the tech boom, but rent has not kept up with this increase. As a result investors in the Bay Area only receive a cap rate of around 4%-5%. Employee wages for the average worker has not kept up with this increase either, leaving thousands homeless and landlords stuck to deal with extensive tenant protection laws, such as rent control and Oakland's new vacant property tax.
What About Capital Gains Tax?
If you are selling to invest a 1031 Exchange is a powerful tax-deferment strategy that is used by some of the most financially successful investors. Proving to be even more true as we move into 2019. Why? Because in many cities across the US real estate prices have surpassed the "bubble levels” of a decade ago. As a result many investors think that today is the optimal time to exchange properties in expensive markets for cash flowing properties in affordable markets. The term 1031 Exchange is defined under section 1031 of the IRS Code.
Cash-Out equity from one home to buy another
The use of cash-out refinancing to purchase an investment property is a strategy used by the most elite investors. This means taking enough money from the equity of an existing property to make a down payment or purchase a new property outright. Many investors choose this option when they live in a property with a ton of equity and don't plan to sell.
Put Your Equity to Work
Investors benefit more from their property by not leaving the equity untapped. Sitting equity may look good on paper, but a smart investor will put a portion of the property's value to work; expanding your real estate portfolio. Now you have a similar amount or greater equity in the new property, while generating a residual income and retaining your original asset.