Investing in the Multifamily Real Estate Sector
Historically, other asset classes, such as equities, have generated higher returns than real estate, although these returns are coupled with higher risk and volatility. When asset class returns relative to the level of risk are calculated over an extended period of time and measured in terms of volatility (or standard deviation), it becomes apparent that real estate produces competitive absolute returns when compared to stocks and bonds. Also clear is the superior risk adjusted return delivered by real estate in comparison to equities.
Mission Capital seeks the best of both worlds: we partner with active investment firms to capture the upside of market growth, as well as real estate acquisition, repositioning, management and disposition at market downturn to provide competitive and stable returns to investors, all the while providing an above-market annual dividend.
Compared to bonds, private real estate delivers a higher return with the same level of risk. Historically, private real estate has exhibited significantly lower volatility combined with high absolute and risk adjusted returns. Few investment opportunities provide superior return potential with mitigated loss risk via real estate securitization. By securing investors with the real estate assets of the project, Mission Capital seeks to provide principal capital loss protection to investors to the maximum extent that is available.
When will the market turn? Invest now to capture opportunities to purchase, rehabilitate, and re-position distressed and below market properties when the market corrects.
Our management team has identified communities in California that are seeing fundamental shifts in population, opening potential for operational repositioning long term growth. Additionally, the economic climate has led to overleveraged property ownership in the multifamily sector.