“The housing market continues to skew in favor of investors, particularly deep-pocketed institutional investors, and other buyers paying with cash,” says Daren Blomquist, vice president at RealtyTrac.
Cold Hard CashWhile higher mortgage interest rates have caused some traditional consumers to shy away from purchases in recent months, cash-flush investors, from mom-and-pop landlords to Wall Street firms, have remained exceedingly active. In September institutional investors accounted for 14% of all sales, which is a new high.
Institutional buyers, whose financing come from all reaches of Wall Street, have exploded onto the market in the past two and a half years. Private equity firms, hedge funds, and Real Estate Investment Trusts have funneled an estimated $20 billion into the housing market over the past several years.
Distressed transactions, comprised of homes in foreclosure or bank-owned, accounted for 25% of all sales last month, up from 18% a year ago. Nationwide the median price of a distressed sale was 41% below the median price of a non-distressed property. “Distressed sales remain persistently high, particularly short sales,” explains Blomquist.
Read the full article here at Forbes: 50% Of All Homes Sales Now Cash
Equity Residences is Taking Advantage of this Opportunity
Equity Residences is taking advantage of the distressed real estate buying opportunity in the luxury vacation residences market. Equity Residences’ Equity Villa Fund acquires vacation properties across the U.S. from Hawaii to Florida, all at approximately 40-60% off peak values and at 15-30% below current market values for traditional non-distressed sales. You don’t have to be a Wall Street banker, the Fund allows accredited investors to participate in the opportunity at investment levels under $100,000.
I wanted to invest in distressed real estate in the U.S. where I could get good returns from a low risk asset. The Equity Villa Fund was a perfect vehicle for me, as it provides long term capital appreciation and near-term rental income from distressed vacation properties. More importantly, the Fund allows me to invest at a capital level that I am comfortable with while providing diversification from a portfolio of assets as if I had invested significantly more.”
– Brent, Chief Financial Officer, Oslo, Norway
The vacation residences owned by the Equity Villa Fund are rented out for cash flow to cover operating expenses. Investors also receive property usage rights that allow them to use the properties as their own vacation homes or to rent out their usage for income and a resultant dividend. The only true investment in the luxury shared-use asset class.
“This is clearly the best model out there. I have been involved with fractional real estate and residence clubs for over 30 years, and I believe the Equity Residences model creates the best value for the investor.”
– Steve Dering, Founding Partner, DCP International
New Charter Partner Investment Round Accepting Subscriptions
For a limited time, the Equity Villa Fund is currently accepting subscriptions for Charter Partnership Units, as outlined in the Offering Memorandum. Benefits include:
- Discounted subscription price to acquire shares in the Fund starting at $96,000 per unit
- Enhanced property usage rights, including extra property visits
Email or call us to learn more! (619) 796-3501