I spoke to an investor recently who described affordable housing investing as challenging but very lucrative, and I thought that was a proper, concise analysis of the industry. The conversation got me thinking. So many times, I see real estate content, courses, masterminds, and conferences advertised as ‘easy,’ and I think that is doing a disservice. If you get into real estate investing thinking it is going to be easy, you are going to be disappointed. Even investing passively is not typically easy; it takes time vetting opportunities and operators, and it takes time monitoring passive investments and reviewing financial reports and performance. Not only does it take time, but it also takes knowledge and experience to know what you’re looking at and the right questions to ask. Passive and active real estate investing may take time and know-how, but it can be well worth it when you find opportunities that help you achieve your financial goals.
Growing up, my mom would always say, “Easy come, easy go.” The point she was making is that anything worth doing or having in life isn’t going to come easy; it’s going to take time and hard work. This reminds me of JFK’s famous quote in reference to going to the moon: “We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.”
My partner Ron and I started GSP REI to organize and measure the best of our energies and skills: vertically integrated, scattered site, single-family affordable rental housing investing. We decided to scale a long-term hold, single-family affordable housing portfolio not because it is easy but because it is a lucrative investment with a meaningful positive impact: revitalizing communities and providing families and individuals with quality housing. Is it a challenge? Yes. Is it rewarding? Yes, both financially and socially. It is unfortunate that many investors are intimidated by affordable housing investing. However, their fears create massive opportunities for investors like us who specialize in affordable housing investing. We know how to navigate low-income areas, Section 8 inspections and applications. We know how to treat our tenants with respect and dignity. We know how to navigate the court system when the inevitable issues arise. We know how to do these things because we put in the time, we accept the challenge, and we intend to win!
Peter Neill, Co-Founder & Partner, 610-357-2330 (Call/Text)