Purpose Driven Passive Profits

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3 Key factors (Part 2)

May 23, 20233 min read
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Recession-Proof Your Investment: A Guide to Passive Investing in Real Estate

Embrace The Upcoming Recession With Smart Investments

The stock market’s unpredictable nature can be worrisome, especially in the face of a looming recession. If you’re searching for a secure, high-return investment platform that can thrive even in a recession, this article is for you. Join us as Nate Armstrong, founder of HomeInvest.com, and I, Steve Warner, Chief Investment Officer, walk you through the world of passive real estate investment. This isn’t a get-rich-quick scheme. It’s about nurturing a secure financial future for you and your family while positively impacting the community.

Key Factors for Smart Passive Investments

In our previous discussion, we talked about the essential factor of choosing the right states for investing. Today, we delve into the next vital aspect of real estate investment - the class of property and tenants.

The Art of Selecting Property Class

The class of property you invest in directly influences your investment returns. Think of it in terms of cars: luxury cars like Maseratis or high-end Mercedes equate to Type-A properties that demand premium rents and fare well during economic booms. However, they’re also prone to the whims of the market and the neighborhood’s desirability.

Meanwhile, the blue-collar, middle-class properties represent the reliable, middle-of-the-road cars like Toyota Camrys or Ford Tauruses. These properties provide steady returns and are more resilient during economic downturns. And then you have the lower-class, government-subsidized housing, which, like budget cars, come with their own unique set of benefits and challenges.

Optimal Investment Class During Downturns

In times of recession, the middle-class properties or what we term as B or C class, perform best. These properties, like the reliable Toyota Camrys, continue to deliver solid returns without any drop. We’ve seen that during the last economic crash, our rents grew as people migrated from their single-family homes into our buildings. Thus, investing in B and C class properties ensures stable returns even during economic downturns.

The Risks of Government Subsidized Housing

It might seem that investing in government-subsidized housing is a good idea during a downturn. However, these investments come with a different set of challenges and goals. Such properties tend not to appreciate much in value and provide limited cash flow. Plus, the maintenance costs often run high due to more frequent property damage.

On the other hand, middle-class properties offer predictable cash flow and appreciate significantly during good economic times. Plus, they attract tenants who value the neighborhood, leading to better property maintenance and quality referrals.

Join us on a Profitable Journey

If you’re interested, we would be thrilled to have you on board with us in this investment opportunity. We are confident that with the right strategy and management, we can achieve great returns on this property, even during a recession.

Creating a Robust Investment Portfolio

Our aim is to help investors like you to build a robust investment portfolio that withstands economic downturns. By choosing the right class of property and adopting the right investment strategy, you can still earn a stable income during a recession.

Take the Next Step

If you are ready to take the next step, please get in touch with us to learn more about this investment opportunity. We are ready to answer all your questions and guide you through the process.

Final Word

Remember, investing in real estate is not a get-rich-quick scheme. It requires careful planning, a thoughtful approach, and patience. However, with the right strategy, it can provide a stable income and create a secure financial future for you and your family. With this in mind, we invite you to join us in our mission to create recession-proof real estate investments.

Contact us today to learn more about this opportunity. We look forward to embarking on this investment journey with you.

real estatereal estate investinginvestingpassive investingrecession proofmultifamilynate armstrong
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Why We Feel It's Our Duty To Multiply Your Investment

The Parable of the Talents (Matthew 25), describes a wealthy man who entrusts his three stewards with varying amounts of money, or "talents," before leaving on a journey.

The first steward receives five talents (money), the second steward receives two talents, and the third steward receives one talent, all with the same instructions to invest it.

The first two servants invest their money and double the amount given to them, while the third steward buries his talent in the ground out of fear of losing it.

Upon the wealthy man's return, he is pleased with the first two servants - they doubled his money. He praises them and rewards them with more money to invest.

He rebukes and punishes the third servant for his inaction.

If you're an accredited investor looking for your First Steward, book a call with us to see how we can help you.

Nate Armstrong

CEO & Co-Founder

Nate Armstrong co-founded Home Invest in 2014, an Inc 500 Award-winning fund manager with expertise in building, buying, and operating institutional-class real estate across the country. With Nate's leadership, Home Invest has executed more than $90 million in real estate transactions. Nate is the CEO and oversees acquisitions and asset management. Prior to Home Invest, Nate served as company Treasurer for Home Investment Partners, overseeing the purchases, renovations, and sales of more than 100 projects. Nate earned his undergraduate degree from St. John's University. He has more than 18 years of experience in real estate investing, finance, and asset management.

Steve Werner

Chief Investment Officer

Steve’s love of real estate investing started in 2002 when he read Rich Dad Poor Dad on a flight home from studying abroad. He started investing while still in college and became a full-time investor in 2004. Steve is the CIO of Home Invest and oversees deal underwriting and investor relations. Steve has more than 21 years of experience in real estate investing, finance, and asset management, and has spoken on stages around the world on business strategy and investing. Currently, Steve lives in Austin, TX and oversees investments across the Midwest for Home Invest.