If you have been following our email and article publications, you have likely noticed a common theme, being the bulk of our homes that we sell to investors and families are located in the midwest or rural America.
The common question (that raises even more questions) among our onboarding investors is why Equity&Help puts their proverbial eggs into the midwest U.S. basket.
Rural America is an untapped goldmine full of potential- potential that the families see in a home that they can repair and make their own, and this equates to the potential for our investors to get a great return, as shown in our third quarter tear sheet, below.
The amount of foreclosures in the U.S. due to the 2008 market crash was well into the 1,000’s- Many Americans were out of work and could not afford their homes due to credit default, and is similarly an issue today due to the Coronavirus wreaking havoc on our economy.
In lieu of events like this, Equity&Help has recognized that the banks are the vehicles that make money- not landlords, and not most typical investors.
The banks overcame the real estate market crash in 2008, meanwhile both landlords and their tenants were the ones that suffered. In order to mitigate this, E&H devised an investment system that actually works for everyone (investors, and families) and this all starts with a home.
The homes that we decide to purchase are in less than ideal shape- they may not have the perfect paint color or updated appliances, but they do have potential to be fixed.
Typically, homes like this are glazed over by most real estate investors and landlords due to their location and condition. They are put-off by being in a rural area that’s a little further away from the hustle-and-bustle of a more populated area, and are likely very put-off by a home that requires repairs beyond an investor’s scope of knowledge, or expense, time and effort.
An upside to purchasing these homes is not solely because of their cheapness. Homes of this variety have that unlimited potential that many people in rural America see, and have the skills to see it through, like in the photos of the property above.
The advantages of purchasing homes in middle America are that the family that moves into the home will happily pay you to live in it while taking responsibility for fixing and improving it. All the while, your investment is secured by an asset, a home.