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Economic trends significantly influence apartment investing in the USA, shaping market dynamics, investment strategies, and property values. Understanding these trends is crucial for investors aiming to navigate the complexities of the real estate market effectively.  Economic Trends Affecting Apartment Investing Inflation and Interest Rates Inflation plays a pivotal role in real estate investments. As inflation rises, the purchasing power of money decreases, impacting rental income and property values. Investors must consider how inflation erodes profits; for instance, returns diminish if rental income does not keep pace with inflation. Additionally, high inflation often leads to increased interest rates, making borrowing more expensive. This scenario can reduce demand for apartments, as potential buyers and renters may struggle to find help to afford housing costs.  Employment and Income Levels The health of the job market directly influences apartment demand. High employment rates typically correlate with increased consumer confidence and spending power, leading to a higher demand for rental properties. Conversely, economic downturns can result in job losses, decreasing demand for apartments and potentially leading to higher vacancy rates. Investors should monitor employment trends to gauge future rental demand.  Supply and Demand Dynamics The balance of supply and demand is critical in real estate. In areas where population growth outpaces housing supply, rental prices may rise. Conversely, oversupply in specific markets can lead to declining rents and property values. Increasing apartment construction—projected to add over 460,000 units in the US this year—may help alleviate some affordability issues, but it’s essential to consider local market conditions.  Technological Advancements Emerging technologies are reshaping the real estate landscape. Innovations in property management, smart home technology, and sustainable building practices are becoming increasingly important. Investors should stay informed about technological trends that can enhance property value and tenant satisfaction, as these factors can significantly influence investment decisions and market competitiveness.  Geopolitical Factors Geopolitical events and global economic trends can also impact the real estate market. Trade tensions and regulatory changes may introduce uncertainty, affecting investor confidence and market dynamics. Investors should be aware of these external influences as they can lead to fluctuations in demand and property values.  Conclusion In conclusion, apartment investing in the USA is intricately linked to various economic trends, including inflation, employment rates, supply and demand dynamics, technological advancements, and geopolitical factors. By understanding these influences, investors can make informed decisions and adapt their strategies to optimize returns in a fluctuating market. FAQs How does inflation affect apartment investing? Inflation erodes purchasing power, impacting rental income and property values. Investors must ensure rental increases keep pace with inflation to maintain profitability. What role do interest rates play in real estate investments? Higher interest rates increase borrowing costs, which can reduce demand for apartments as potential renters and buyers face affordability challenges. Why is employment meaningful for apartment demand? High employment rates boost consumer confidence and spending power, increasing demand for rental properties. Conversely, economic downturns can decrease demand.  How do supply and demand influence rental prices? When demand exceeds supply, rental prices typically rise. Conversely, an oversupply of apartments can lead to decreased rents and property values. What technological trends should investors watch? Investors should pay attention to advancements in property management, smart home technology, and sustainable building practices, as these can enhance property value and tenant satisfaction.

I’m excited to share some insights from one of the most insightful episodes of the Achieve Wealth Podcast. Originally aired in 2019, this episode, “Ep#21 From Maintenance Man to Owning 4500 Units and Secrets of Property Management Companies,” features the remarkable journey of Glen Gonzalez. Podcast Highlights From Humble Beginnings: Discover how Glen started as a maintenance man and climbed the ladder to owning 4500 units. Secrets of Property Management: Gain insider tips and strategies that Glen used to manage up to 6500 units effectively. Real-Life Lessons: Learn from Glen’s personal experiences, challenges, and triumphs in the real estate industry. Advice for Investors: Practical advice on starting from the ground up, building a successful property management company, and achieving real estate investment success. Why Listen? This episode is a goldmine for both seasoned investors and newcomers to the real estate industry. Glen’s story is not just about success but about resilience, learning from the ground up, and the importance of understanding every aspect of property management and ownership.   Listen To The Podcast Now Revisiting this episode can provide fresh inspiration and actionable insights that you can apply to your own real estate journey. It’s an excellent opportunity to reflect on the fundamental principles that drive success and to reignite your passion for investing.   Thank you for being a valued member of our investment community. Your growth and success are our top priorities, and we’re here to support you every step of the way. Join Our Investment Community Are you interested in learning more about our investment strategies and opportunities? Visit achieveinvestmentgroup.com Let’s achieve financial success together!

At Achieve Investment Group, our latest project, Istana at Wurzbach, a 324-unit Class A multifamily property in North West San Antonio, marks a significant milestone in our real estate ventures. This development has been a testament to our dedication to quality and community growth. The Beginning: From Raw Land to Notice to Proceed Two years ago, Shanti and I set out to transform a piece of raw land into a vibrant living community. The initial stages involved putting the land under contract and obtaining necessary zoning, platting, and permits. After overcoming numerous challenges, we issued the Notice to Proceed (NTP) to our builder, marking the official start of construction. Construction Phase: Progress and Milestones Construction began with land clearing, revealing stunning views for future residents. The project has advanced rapidly, recently reaching a significant milestone with the first concrete pour at the clubhouse. This phase underscores the collective effort and dedication involved in bringing Istana at Wurzbach to life. Design and Quality: Elevating the Istana Experience One distinctive feature of Istana at Wurzbach is the incorporation of the letter “A” from Achieve into the roof design. Although this design choice added $100,000 to our costs, it is an integral part of our branding strategy. The site has undergone nearly 10 months of site and utility work, with road construction currently underway. We anticipate the start of vertical construction within the next month, with the first building and clubhouse expected to be completed by Q1 2024. Commitment to Excellence: Quality Materials and Construction Our commitment to quality is evident in our choice of materials and construction techniques. We opted for concrete driveways over asphalt, despite the higher cost, to ensure long-term durability. The clubhouse, being the first building to emerge, is designed to make a strong first impression and set the tone for the entire development. Progress and Community Impact Reflecting on our journey, we are grateful for the lessons learned and experiences gained from the Istana at Wurzbach project. As we move forward, our commitment to delivering exceptional real estate developments and contributing to our community’s growth remains unwavering. Recent Progress: Interior and Safety Updates As of the third week of April 2024, significant progress has been made on the interior works of Istana at Wurzbach: Interior Utilities and Waterproofing: Implementation of crucial interior utilities and waterproofing measures is underway, ensuring the property’s longevity and durability. Tub and Shower Installation: Tubs and shower pans are being installed in the units, reflecting our commitment to providing top-notch amenities. Sprinkler System: The installation of sprinkler systems is complete in the clubhouse and the first building, enhancing safety and compliance with building regulations. Waterproofing in Patios and Breezeways: Additional waterproofing efforts in outdoor areas are in progress, enhancing both aesthetic and functional appeal. Our team is diligently working to expedite the final touches to achieve a timely Certificate of Occupancy and initiate leasing activities. The Istana at Wurzbach project exemplifies our dedication to creating high-quality living spaces. We look forward to sharing more updates as the project progresses towards completion. For more information and to explore investment opportunities, visit Achieve Investment Group.

Before delving into the broader industry news and updates, I’m excited to provide an update on our project, Istana at Wurzbach. We’re delighted to share the significant progress and milestones achieved in this ambitious endeavor. Each week, we move a step closer to our goal of establishing a landmark that exemplifies a harmonious blend of luxury, sustainability, and innovation. 12 States With the Highest Property Taxes The average American household shells out $2,869 annually on property taxes, according to the U.S. Census Bureau. But depending on where homeowners live, property taxes can be much higher or considerably lower, a recent study from the personal finance website WalletHub found. Those taxes go into state and local government coffers. School districts, counties, municipalities, and townships can also collect property taxes. Get Your Free Audiobook To find out where property taxes are highest and lowest, WalletHub compared the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real estate property tax rates. Researchers divided the median real estate tax payment by the median home price in each state. They then used the resulting rates to obtain the dollar amount paid as real estate tax on a house worth $281,900, which the Census Bureau reported was the median value for a U.S. home as of 2022. Join Our Community: If you’re not already part of our vibrant Facebook group, “Multifamily Investors Group,” I invite you to join. It’s a space where like-minded investors connect, share, and grow together.  

As we gear up for another week filled with updates and trends, I’m particularly excited to share something extraordinary with you.I recently hosted an exclusive webinar that’s a must-watch: Passive Real Estate Investors Need To Know This Before Filing Their 2023 Taxes! This insightful session is tailored to equip you with the necessary knowledge to adeptly navigate the complexities of today’s real estate market. It offers essential tax planning tips and strategies, positioning you well ahead of the April 15th deadline.We were privileged to have Amanda Han and Matt Macfarland, two of the nation’s most esteemed real estate taxation experts, join us as guests. Best-selling authors of “Tax Strategies For The Savvy Real Estate Investor” Amanda and Matt are renowned for their expertise in simplifying complex tax strategies for real estate investors. Their insights during the webinar are invaluable.Don’t miss out on this golden opportunity to transform your approach to real estate investing and tax planning. Watch the on-demand webinar now and arm yourself with cutting-edge tactics to make the most out of your investments. Watch the On-Demand Webinar Here! Passive Income: What It Is and Ideas for 2024 KEY TAKEAWAYS Passive income is revenue from interest on savings, getting cash back or rewards on a credit card, renting out a space, and so on.   The Internal Revenue Service (IRS) has specific rules for passive income, including “material participation,” that determine whether a taxpayer has been actively involved in an income-producing activity.   Portfolio and passive income are frequently confused, but essentially if you’re making returns on your investing in securities, including crypto, that’s portfolio income, not passive income.   Top financial advisor Marguertia Cheng says, “Some of the most reliable and consistent forms of passive income include income from dividends paying stocks, mutual funds or ETFs, interest income from CDs, and bond ladders.”   A taxpayer can claim a passive loss against income generated from passive activities. CONTINUE READING Are you passionate about multifamily investing? Dive deeper into the world of real estate into dynamic communities tailored for investors like you! Join our vibrant Facebook group, “Multifamily Investors Group” where investors connect, share insights, and grow together in an active and supportive environment. Don’t miss out on the opportunity to enhance your professional network by becoming a part of our LinkedIn group, “Multifamily Investors Group” It’s the perfect space to engage with industry leaders, discover new strategies, and stay ahead of the curve in the multifamily investing scene.

Welcome to our weekly newsletter, where we delve into insightful discussions on real estate trends and investment opportunities. This week, we focus on the Rent-to-income ratio of 22.9% in the 4th quarter of 2023 is down 90 basis points (bps) from the peak and down 60 bps year-over-year Here’s some good news: Apartment rent-to-income ratios declined in 2023 as incomes grew faster than rents. The median U.S. household signing a new lease for a market-rate apartment came in with a rent-to-income ratio of 22.9% in the 4th quarter of 2023, down 90 basis points (bps) from the peak and down 60 bps year-over-year, according to data from RealPage Market Analytics. In fairness, rent-to-income ratios remain slightly above the pre-COVID norms of around 22%, given that rents outpaced wages during the peak inflationary period. But market-rate apartment affordability is steadily improving thanks to the onslaught of new supply cooling off rent growth, even as wages keep rising. This is good news for renters AND operators. Subscribe To Get Access To Your Premium Content. PREMIUM CONTENT As income growth begins to outstrip rent increases, we observe a broadening interest in rental properties across all price tiers. This positive shift is anticipated to persist into 2024, bolstered by an influx of new rental listings and expectations for rent hikes to remain subdued. Many inquire about the methodology behind these findings whenever I present this data. Our analysis aligns with the standards commonly adopted by Real Estate Investment Trusts (REITs), where affordability metrics typically fall within the low to mid-20% range, echoing our results. We assess affordability by examining the combined income of all individuals listed on a lease application, including roommates, against the agreed-upon rent. From this, we calculate the rent-to-income ratio for each household and determine the median value across the dataset. It’s important to note, this calculation excludes lease renewals, as income information is not commonly re-reported at these times. Other measures routinely inflate rent-to-income ratios due to poor methodologies. You can’t just mash together incomes and rents from different datasets, as most researchers do. Particularly when you do this with public datasets on income, it’s apples and oranges. This is because there are (unfortunately) millions of households who cannot afford market-rate rentals. If you include them in the calculation, it inflates the ratio. It’s valid to point out unaffordability among low-income households, but it’s NOT an accurate representation of who lives in these rentals and the rents they’re paying. On that note, the sad reality is that the households spending 30%+ of income on rent are often those in subsidized affordable housing or using vouchers, as many government programs require those renters to spend the 30%. This is why we need a lot more affordable and attainable housing in the U.S. – and a lot more public and private support for it. But in most professionally managed, market-rate rentals, operators typically will not lease to renters with rent-to-income ratios of 30%+. And yet there’s been enormous demand in recent years for market-rate rentals among renter households spending 22-23% of income toward rent. Among market-rate renters, there are certainly some facing financial challenges. I don’t want to downplay that because those needs are real and must be addressed. But broadly speaking, affordability is not the massive headwind it’s often portrayed to be… and it’s now trending in the right direction.

As we continue our journey towards financial independence and excellence in real estate investment, I wanted to share with you some transformative insights from our most recent Investor Education Series Webinar. The event, which focused on “Year-End Tax Errors That Could Cost Real Estate Investors Thousands in 2023-24”  Featured Josh Belk, the visionary CEO of Lodestar Tax & Consulting, the session unveiled critical tax strategies and common pitfalls that every real estate investor should be aware of. The Silent Wealth Killers Tax Errors That Could Cost Real Estate Investors Thousands! WATCH WEBINAR REPLAY Throughout the webinar, we delved into critical topics that every real estate investor must consider: 1. Optimizing Depreciation Deductions: Understanding the power of depreciation to reduce tax liability is fundamental. Yet, many investors overlook this potential, missing out on significant savings. 2. Navigating Year-End Tax Code Changes: The tax landscape is ever-evolving. Staying informed about these changes is vital to ensure compliance and to maximize investment returns. 3. Exploring Tax Credits and Incentives: Many real estate investors are not fully aware of the available tax credits and incentives. Identifying and leveraging these can drastically reduce tax burdens. 4. Mitigating Capital Gains Tax: Strategies to mitigate capital gains tax can greatly enhance the profitability of real estate transactions. It’s about making the tax code work for you, not against you. 5. Avoiding Common Tax Errors and Audits: Knowledge is power. Understanding common pitfalls and how to avoid them can save investors from costly errors and the dread of audits. A Personal Note from James Kandasamy: With over 9 years of experience in real estate and a portfolio that speaks volumes of our commitment to excellence, I, along with the Achieve Investment Group, am dedicated to empowering our investors with knowledge and strategies that propel them toward success. This webinar is a testament to our commitment to your financial well-being. We believe in the power of education and the impact of sharing knowledge. It’s not just about the numbers; it’s about building a community of informed investors who are equipped to make the best decisions for their financial future. In closing, I encourage each of you to reflect on these strategies and consider how they can be integrated into your investment approach. As always, Achieve Investment Group is here to support you in your investment journey, offering guidance, insights, and opportunities to grow your wealth. Join Our Community: If you missed the live session, worry not. We invite you to join our community on social media and our Facebook group of nearly 20,000 real estate investors, where we continue the conversation and dive deeper into the world of real estate investing. Thank you for your continued trust in us. Here’s to making informed investment decisions and navigating the complexities of real estate investing together.

As we prepare to dive into this week’s discoveries and insights, I’m excited to kick things off with an exclusive highlight just for you. Are you ready to navigate the complexities of tax season like a pro? Mark your calendars for March 27th, 2024, Wednesday at 12 PM CST, because we’re unveiling a golden opportunity that no passive real estate investor should miss. Join us for a FREE Education Webinar that promises to be a game-changer for your financial strategy! This week, I’m thrilled to take you behind the scenes of a remarkable conversation I had with Wayne Courageous III on “The Untold Stories of Real Estate Investing” podcast. Our discussion spanned the essence of real estate investing, from the grassroots of single-family investments to the zenith of multi-family syndication. A Glimpse into the Episode: Wayne, with his profound experience and a knack for digging deep, hosted a conversation that revealed the layers of real estate investing that often stay hidden. We ventured through my journey, marking the transitions, strategies, and insights that have shaped my path from an eager enthusiast to a seasoned investor, managing over $130 million in multifamily properties. Key Takeaways: The Power of Syndication:  Discover how syndicating nine multifamily properties has not just been a game of numbers but a saga of community building and value creation. Insider Secrets Revealed: Delve into the essence of my bestselling book, “Passive Investing in Commercial Real Estate,” where I uncover the strategies for achieving financial independence. Mentorship and Beyond: Hear firsthand the impact of mentorship, as Wayne shares his transformative journey under our guidance, highlighting the tangible benefits of being part of our exclusive mentorship program. Why This Episode Is a Must-Listen: Inspiration for Aspiring Investors: Whether you’re navigating the beginnings of your investment journey or scaling new heights, this episode is packed with real-life insights and actionable strategies. The Multifamily Advantage:Understand the nuanced advantages of multifamily investments over single-family deals, especially in the current economic landscape. The Mentorship Edge: Learn how our mentorship program can serve as your catalyst for growth in the complex world of real estate investing. CLICK HERE TO LISTEN TO THE FULL EPISODE!

A Milestone Worth Celebrating: 25% Returns Amidst the Tide In a world where the real estate currents have been anything but predictable, we’ve managed to not just sail but soar! I’m beyond excited to announce that, together, we’ve achieved a formidable 25% return for our investors in the Taylor deal. This isn’t just a number; it’s a testament to what we can achieve together. Congratulations to you all – this win is yours as much as it is ours! The Secret Behind Our Success You might wonder, “How did we do it?” The answer lies in our unwavering resolve and strategic agility. By navigating the complexities of the market and making a calculated decision to sell a portion of our 130-acre land treasure trove, we’ve turned the tides in our favor, even as the real estate market faced downturns. The Role of the Samsung Deal in Taylor, TX Remember the buzz around the Samsung Deal in Taylor, TX? That wasn’t just talk; it was a crucial pivot in our strategy, laying the groundwork for the remarkable returns we’re celebrating today. It’s a clear indicator of our commitment to not just foresee but also seize opportunities for our community. None of this would have been possible without you – our trusted investors. Your faith in us fuels our drive to explore, innovate, and excel. Thank you for being the cornerstone of our journey toward redefining real estate investment. What’s Next? Let’s Keep the Momentum Going As we revel in this achievement, let’s not forget that this is but a stepping stone to greater heights. We’re already setting our sights on the next venture, and we want you along for the ride. 👉 Ready for More? Let’s Dive Into the Next Adventure Together Let’s Keep Winning Together – Join Our Journey Join Our Community: If you’re not already part of our vibrant Facebook group, “Multifamily Investors Group,” I invite you to join. It’s a space where like-minded investors connect, share, and grow together. Thank you for your continued trust and engagement. Here’s to achieving more together! Stay tuned for our upcoming passive investor course, designed to equip you with the knowledge to invest wisely and grow your portfolio passively. More details to come in our next newsletters!

Today, we would like to share the incredible journey of Istana at Wurzbach, our 324-unit Class A Multifamily development in North West San Antonio. Shanti and I embarked on an ambitious real estate venture two years ago. We worked tirelessly to put raw land under contract, get it zoned, platted, and permitted, and finally, the day came when we issued the Notice to Proceed (NTP) to our builder. The project was a significant milestone for Achieve Investment Group, as we managed the entire development in-house. As the construction of Istana at Wurzbach began, the excitement was palpable. The land-clearing process revealed the stunning views that our future residents would enjoy. Fast forward to the present day, and the construction is progressing rapidly. We recently celebrated a significant milestone – the first concrete pour at the clubhouse. These behind-the-scenes moments are a testament to the hard work and dedication of everyone involved in bringing Istana at Wurzbach to life. Reflecting upon this journey, we are incredibly grateful for the lessons learned and the experiences gained from the Istana at Wurzbach project. As we continue to grow and embark on new ventures, our commitment to delivering exceptional real estate developments and contributing to our community’s growth and prosperity remains unwavering. We invite you to enjoy Part 1 of the Behind the Scenes Construction video series for Istana At Wurzbach: Istana At Wurzbach Property Overview Concrete Footings 101 Process for a Successful Pour🏗️