MULTI-FAMILY RESIDENTIAL
Multi-family apartments should continue to be a favorite of investors, as they provide consistent cash flow due to broadly diversified rent rolls and lower re-leasing costs.
More than any other real estate asset class, multi-family properties, due to the short-term nature of their leases, offer investors the opportunity to take advantage of tightening occupancy and rising rents.
Demographic shifts occurring in the U.S. bode well for continued apartment demand. By 2015, there will be 67 million people aged 20-34, an age in which the majority choose to rent rather than own.
Additionally, homeownership rates have declined to 65.4% from a peak of 69% in 2004. Every 1% decline in the homeownership rate translates into one million new renters.

~Source: Census Bureau, 4Q 2012

BENEFITS SUMMARY/REASONS TO INVEST

Stabilized Asset
Income Producing/Cash Flow Positive
Growth/Appreciation Potential
Diversified Tenant Base
Low Re-leasing Costs
Inflation Hedge from Rising Rents

FIRST AND SECOND TRUST DEEDS
HFI deploys a unique investment structure to access attractive real estate opportunities, without all the risks associated with direct equity investments. Trust deed investments are private loans collateralized by real estate assets. By investing in trust deeds, you receive a fully secured, fixed rate of return on your investment dollars. By recording a lien, you indirectly control the property and protect your principal.

To further mitigate risk and create a “hedge”, loan amounts are typically less than 60% of the property value. Accordingly, there is potential for increased profits if the borrower defaults and the property can be sold for more than the loan amount. For obvious reasons, many cautious investors prefer first trust deeds as an alternative to fixed income investments.

BENEFITS SUMMARY/REASONS TO INVEST

Fixed rate of return
Secured by fully entitled real property
Priority position over equity investors
Hedge against valuation corrections

WHERE WE INVEST