How investors are discovering real estate opportunities.

Investors are growing wary of the stock market, which seems more and more disconnected from the economy. That’s why people are exploring alternative investments such as real estate.

Real Estate Opportunities

Why real estate? Because people always need a place to live.

Real estate offers great opportunities: buyer demand is high, the U.S. housing market is underbuilt, and the inventory of existing houses for sale is low.

Existing home sales in September 2020 were the highest since May 2006. As a result, median home prices are up almost 15%, compared with a year ago, says the National Association of Realtors.

Sept. 2020 existing home sales

Sales of existing homes are soaring, inventory is low, and prices are up almost 15% in a year, says the National Association of Realtors.

Here’s the catch: there’s a right way and a wrong way to get into real estate. Speaking from personal experience, going it alone is not a path to success.

Do you have a reliable guide?

It’s up to you to work with a guide or go it alone. On their own, investors fall into 5 traps:

  1. Investing without first getting a real estate education, you learn only by trial and error.
  2. If you work a full-time job, it’s hard to find enough time to actively manage real estate.
  3. Investing in properties too far from home, you can’t keep an eye on them.
  4. If you’re unaware of the real estate cycle, its booms and busts, you’re at a big disadvantage.
  5. If you lack a guide who knows your local markets and helps you make well-informed decisions, you’re on your own.

Over the years, I learned how to get around these traps the hard way. Looking back, what I needed but didn’t have was a knowledgeable guide in real estate investing.

That’s why I spent 10 years studying with the best real estate investors in the U.S., preparing to launch Alvernia Capital Management.

My 12 years of experience enabled me to build an investing playbook that reflects best practices from leading investors, plus street smarts and local market knowledge. As your guide, I invest side by side with you.

Two ways for investors to succeed

New real estate investors need to decide whether to invest actively or passively. What’s the difference?

Active investors are hands-on. They find, buy, fix and flip houses. They may rent housing and work with tenants as a landlord.

Passive investors buy and sell whole or partial promissory notes. They hire a property manager to work with tenants and a payment processor to collect payments.

Which fits you better: active or passive investments? Find out in 2 minutes with our free assessment.

Investing in promissory notes

Passive investors buy, sell and manage promissory notes – which are a promise to pay a specified amount of debt to a specific person, either by a specific date or on demand.

In real estate, promissory notes define the terms of property purchases. They are backed by the real estate asset behind the note. Since these notes are asset-backed, they can be used as collateral to purchase more notes, a process called hypothecation.

Notes may be whole or partial, performing or non-performing. Here are answers to frequently asked questions about promissory notes. 

Rebuilding communities, creating real estate opportunities

Alvernia rebuilds communities to create opportunities for investors like you. We create affordable housing that does not displace deserving residents.

Learn a simple, practical way to invest in real estate. Subscribe to our blog, which appears on the first Saturday of each month.