Due to the economic job growth in the DFW area, there is an increasing demand for affordable housing. Stringent residential mortgage underwriting standards, stagnant income growth, and escalating property appreciation prevents many families or individuals from home
Due to the economic job growth in the DFW area, there is an increasing demand for affordable housing. Stringent residential mortgage underwriting standards, stagnant income growth, and escalating property appreciation prevents many families or individuals from home ownership, thus pushing them toward renting. Although there’s a growing supply of class A multi-family housing, rental prices for these properties are not financially possible for those in the low to moderate income range. With more than 40% of households in the DFW metroplex earning less than $50,000 per year, class B properties or vintage multi-family housing is their ONLY housing alternative.
With future job growth in DFW predicted to be grow by 42% over the next 10 years, the need for safe and affordable housing will only continue to rise.
Safety and security are two of the top three priorities for renters, with affordability being their number one concern. But many vintage properties lack the necessary infrastructure, re-tenanting strategy and/or capital to produce the type of living environment these families seek. This is a situation that presents a prospective buyer has a true value-add opportunity.
Furthermore, Freddie Mac found that 69% of those surveyed felt it was more affordable to rent than own. As the rental demand increases, the demand for affordable and safe vintage properties increases. Freddie Mac states that NOW is the most challenging time in 50 years to find adequate, affordable rental housing.
In 2015, DFW employment grew 3.3 percent, outpacing both the state at 1.5 percent and the nation at 1.9 percent. Unprecedented job growth produced 126,800 jobs in 2015 with another 119,000 jobs added to the local economy in 2016. Among the 12 largest metropolitan areas in the
In 2015, DFW employment grew 3.3 percent, outpacing both the state at 1.5 percent and the nation at 1.9 percent. Unprecedented job growth produced 126,800 jobs in 2015 with another 119,000 jobs added to the local economy in 2016. Among the 12 largest metropolitan areas in the country, Dallas ranked second in both the rate of job growth and the number of jobs added in 2016.
In response to job growth, the construction of Class A multifamily housing ballooned in 2015 with the completion of 17,700 units. Another 18,500 apartments was brought on line this past year. The average rent for a Class A apartment in the DFW area is currently $1500/ month. For the DFW Metroplex, the income per capita is $29,132 with the median household income at $58,190. Although the median household income tops at $58,190, 43% of the total population have household incomes less than $50,000
The U.S. Department of Housing and Urban Development (HUD) deems a unit affordable if the gross rent (rent plus tenant-paid utilities) equals no more than 30 percent of the household’s income. For a family earning $50,000/year, HUD would recommend a rent plus utilities of $1062/month. For an individual earning the median per capita income of $29,132, their optimal rent amount would be $655/month. With median rents for Class A housing hovering at $1500/month, this makes Class A housing unaffordable for over 40% of the DFW population.
Financial analysts suggest that portfolios should have at least 25% of their investments in alternative assets. The lesson to be learned from previous stock market crashes is that diversification is the only way to protect your wealth. We provide investors an opportunity to diversify or expand investment portfolios with real estate holdings.
"It's not how much money you make, it's how much you get to keep."
- Bill Gates
Taxes are the biggest erosion of wealth. The average person loses 40% to 50% of their income because of: payroll, federal income, state income, property, excise, state and local sales tax and others.
In 1975 the IRS created the Self-Directed IRA. It was just in the recent past that investors began to leverage self-directed IRAs. Investing through a self-directed IRA allows individuals to purchase real estate investments with retirement funds held in IRAs, including 401(k)s, Solo 401(k)s and Traditional, Roth, SEP, and SIMPLE IRAs. These vehicles provide tax free (Roth IRA) or tax deferred (non-Roth IRA) investing opportunities.
Investing in real estate through a self-directed IRA can be the key to perpetuating wealth across generations. Starting in 2010 high net worth individuals can convert an IRA to a Roth IRA and take advantage of this tax-free opportunity.
Group investing, called syndicating, provides the opportunity for investors to pool their capital with other qualified investors for the purpose of investing in larger and more lucrative real estate projects. Each investor has a membership interest in the property LLC that is
Group investing, called syndicating, provides the opportunity for investors to pool their capital with other qualified investors for the purpose of investing in larger and more lucrative real estate projects. Each investor has a membership interest in the property LLC that is based on their invested capital. Equity positions in a specific property are typically offered using a Private Placement Memorandum. Using this strategy, OnPoint, LLC provides the investment and the expertise to acquire, manage and sell, while investors provide the capital and participate in all the benefits of owning commercial real estate without any of the acquisition, management or sale responsibilities.
Real estate, unlike the stock market, is not subject to wild fluctuations and can provide a steady return on investment. In addition to portfolio diversification, the benefits of investing in real estate include income produced by cash flowing assets, equity buildup from loan
Real estate, unlike the stock market, is not subject to wild fluctuations and can provide a steady return on investment. In addition to portfolio diversification, the benefits of investing in real estate include income produced by cash flowing assets, equity buildup from loan amortization, appreciation through increased value, leverage obtained through bank financing, and tax deductions from depreciation. This combination can provide very healthy overall returns.
This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the Company and read all of the offering documents and attest to reading and fully understanding such documents. OnPoint, LLC and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This website should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.
The information you provide below will be kept strictly confidential and is only for the purpose of determining that you meet the definition of Sophisticated or Accredited Investor as required by State and Federal law.
This is not an offer of securities. The actual investment offering will be made only through a Private Placement Memorandum.
After you complete this questionnaire, we will contact you. Thank you for your interest in OnPoint, LLC.
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I have had an individual income in excess of $200,000 in each of the two most recent years, or joint income with my spouse in excess of $300,000 in each of the two most recent years, and have reasonable expectation of reaching the same income level in the current year.
I have an individual net worth or joint net worth with my spouse in excess of $1,000,000, excluding the equity in my/our primary residence.
I, either alone or with a purchaser representative have sufficient knowledge and experience in financial and business matters to make me capable of evaluating the merits and risks of a prospective investment.
I represent a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
I represent a bank, insurance company, registered investment company, business development company, or small business investment company.
I represent an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million.
I am a director, executive officer, or general partner of the company selling the securities.
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