INVESTMENT STRATEGY - LONG TERM RENTALS
Clark REI is building a Real Estate portfolio in locations with strong fundamentals.
It is our goal to obtain exceptional assets in high population growth markets, steward them well, with a focus on long-term wealth creation.
Crystal Clear Criteria
#1 - PROPERTY TYPE
#3 - PROPERTY CONDITION
#1 - PROPERTY TYPE
Single Family Homes
Townhomes
Sub-Institutional Multifamily
#2 - LOCATION
#3 - PROPERTY CONDITION
#1 - PROPERTY TYPE
Supply Constrained
High Demand
#3 - PROPERTY CONDITION
#3 - PROPERTY CONDITION
#3 - PROPERTY CONDITION
Value-Add
or
Turn-Key
#4 - PRICE RANGE
#5 - PROFITABILITY
#3 - PROPERTY CONDITION
Near median home price for that specific market
#5 - PROFITABILITY
#5 - PROFITABILITY
#5 - PROFITABILITY
Dependent on Property Condition
More Risk, More Reward
The Case for Rentals
DEMAND > SUPPLY
CHANGING HOMEOWNERSHIP TRENDS
CHANGING HOMEOWNERSHIP TRENDS
These markets are out of balance, with demand outweighing supply. New Development continues to take longer as municipal board reviews and legislation become more cumbersome over time.
CHANGING HOMEOWNERSHIP TRENDS
CHANGING HOMEOWNERSHIP TRENDS
CHANGING HOMEOWNERSHIP TRENDS
US homeownership has been delayed across younger generations due to rising costs and changing preferences.
The Millennial and Gen Z generations are "asset light," choosing experiences instead.
STUDENT DEBT
LESS PRICE SENSITIVITY
LESS PRICE SENSITIVITY
Student loan debt is over $1.7 trillion and rising. Average student loan debt is near $30,000.
LESS PRICE SENSITIVITY
LESS PRICE SENSITIVITY
LESS PRICE SENSITIVITY
Renters who are looking for Class A location and property condition are less sensitive to high rents due to their income.
The Big Picture
HOUSING SUPPLY CAN'T KEEP UP
HOUSING SUPPLY CAN'T KEEP UP
HOUSING SUPPLY CAN'T KEEP UP
Freddie Mac Research Note May 2021:
"As of the fourth quarter of 2020, the U.S. had a housing supply deficit of 3.8 million units. These 3.8 million units are needed to not only meet the demand from the growing number of households but also to maintain a target vacancy rate of 13%. Between 2018 and 2020, the housing stock deficit increased by approximately 52%."
POPULATION MOVEMENT
HOUSING SUPPLY CAN'T KEEP UP
HOUSING SUPPLY CAN'T KEEP UP
From reviewing the trends from 2010-2020, it is clear where people are moving. These trends were accelerated by the pandemic.
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