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Recession-Proof Investing Part 5: Proof Is In The Pudding!

A series finale better than the one on your favorite streaming service!

Yes. Better than Game of Thrones!

We discussed the concept of recession and week by week we followed it with examples that compared investing in Equity & Help to investing in other markets.  We  demonstrated that we are the best option to successfully go through the recession scenario.(And if you’re new to our mailing list, you can read each article in this series on our blog by CLICKING HERE!)

So, after all this information, what is missing?

We say goodbye to the series with two concepts found in popular sayings: “Numbers don’t lie.” and “A thousand words don’t count as much as a single fact.”

With this in mind, we will show you our financial reports from 2019 to the present.  Note that  even taking into account COVID and its attendant complications, 2020 turned out to be one of the best historical years for our company. These reports demonstrate that changes in the market, trends and extreme situations have not altered our course and we have continued to produce cash flow for our PhilanthroInvestors (PIs). Proof that our model is a hot commodity.

To make sure that we are all on the same page, we offer some definitions: 

  • Assets Recovered: It is the total value of the houses that have entered our system.
  • Homes Recovered: The total number of families that have a home thanks to our program.
  • AVG. Equity Gain: Refers to the average capital gain of the portfolios of our PIs, that is, the sale price in relation to the purchase price.
  • AVG. Cap Rate: It is the average net return that our PIs receive annually with their portfolios, the sum of the performance of all its properties during a year.
  • Average Investor Price: Average cost of each house our PIs buy.
  • Average After Repair Value: Since we buy our houses as is, in need of repairs, maintenance and extra care, and at their lowest price, a decrease in market prices would not affect our system. We estimate the value the property will have once it is in its best condition after being repaired, and with which we establish our sales prices to families, in favor of our PhilanthroInvestors.
  • Our Families: It is the net return that our investors have made during the period of time indicated in each graph (one year, exactly) and it is cumulative, so it is very good to compare between reports.
  • Best Sellers: Varies constantly, and refers to the states with the highest number of homes sold to families.
  • Average Monthly Payment: The average monthly payment made by the families at each property owned by our PhilanthroInvestor.
  • Pie Chart: Shows the average percentages for the entire year of all families with their payments up to date, those that are behind and those that exceed 90 days of arrears (potential eviction). Being an average of the whole year, none of these numbers apply to a specific month.
  • Assets Recovered: Regardless of the weather, economy, market trends and the crisis situation of 2020, we continue to purchase properties with significant potential for improvement and sale for our PhilanthroInvestors.
  • Homes Recovered: Because our work did not stop, the combined perseverance between Equity & Help and our PIs allowed more families to have access to fulfill the American dream of owning a home.
  • AVG. Equity Gain: Decreased as both properties and the Real Estate business in general have become more difficult to navigate, as in an inflated market whose prices have shot up to 50% in the last year, our PIs have sacrificed some of this Capital Gain in favor of having productive assets and cash flow.
  • AVG. Cap Rate: It has remained within the range that we always promise: 8 to 12%
  • Another interesting fact is that for 2019 it was not information that appeared in our financial report, since it had its debut in 2020. For 2019, this number was just over 10% and as you can see, even after COVID (the closest thing to a recession that we have experienced) continued to increase.
  • Average Investor Price: Yes, it went up over the years. And it will continue to increase over time for a myriad of reasons, including those mentioned in our explanation of AVG. Equity Gain. And although it continues to rise, in reality it matters very little because at the end of the day only the sale price for each family matters.
  • Average After Repair Value: It has risen along with the Average Investor Price, meaning that the system is maintained despite the increases in the market, and that, along with this, the average monthly payment of families the PI will also rise.
  • Our Families: We have not only doubled our number of investors, but we have also doubled the amount of money paid to them. In short, it means that we get better returns for our PIs.
  • Best Sellers: Illinois, Indiana, Ohio and Pennsylvania continue to dominate this 

It is important to mention that there are many families in the +90 day portion who manage to catch up and pay off their debts, as we help them apply for government and state aid programs.

Or be evicted if they cannot catch up even with all the extra effort we make to help them, since it does not benefit us to harm them by accumulating debts, or having non-productive assets for our PI.

And although all this data has fluctuated in these three years and counting, the number of payments per day is still more than 70%.

 

As you can see, our results not only demonstrate the stability that allows you to accurately plan the use of the money received for each house in a turnkey investment in which you can be as involved as you wish, and receive detailed reports on it every month.

Compared to other systems where speculative values ​​come into play, reliance on third party decision making with the potential to negatively affect your return, lack of cash flow, time (and effort) wasted praying that a series of predictions and calculations are fulfilled to obtain the rewards; Equity & Help overcomes all these obstacles not only in normal situations, but it guarantees to successfully go through a recession.

We hope this series of newsletters has been educational, and the best way to send it off is by clicking the button to schedule a discovery call below, using our method as an investment vehicle.

See you next week!

 

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