Alpha Capital: Real Estate Stays Top Go-To for Skittish Investors

After a volatile real estate market in 2022 – complete with frenzied bidding wars in the spring that saw offers soar over asking price – the end of 2022 has seen a slowdown. Driven by rising interest rates, high inflation and skittish buyers, the cooling market has some potential iBuyers wary. But Tyler Smith, CEO of Alpha Capital, says it still makes sense to move investment dollars into real estate.

"It's about long-term gain," he said. "An investor wants to keep an eye on year-over-year returns. Over the long run, real estate almost always grows in value."

For Smith, it's a multi-step process to ensure that growth; his company not only buys property but also manages multi-family units, handling renovations and subsequent rentals. By improving the quality of the units, he said, the communities that tenants live in improve as well.

As compared to other investment channels such as crypto and the stock market, real estate investing – particularly in value-add multifamily properties – is more predictable in terms of outlay of cash and expected returns, he said.

He acknowledges that it's not always a smooth ride. The National Association of Home Builders reported a slowdown in new construction in 2022. Jerry Konter, a Georgia-based NAHB chairman and home builder, reported that ongoing rise costs of building supplies, along with fixed-rate mortgage loans that now top 5%, contribute to a building slowdown.

New housing starts were down almost 10% last summer from the prior year. They're now leveling off and holding steady.

To Smith, those numbers point to opportunity. Because of less new construction, existing real estate will have a consistent or growing increase in value, he said. "Obviously the market is changing. We're coming from a super-hot market to a cool down. But returns will still come in for investors."

He added, "Benefits such as tax breaks and combined purchasing power for fund investors can also offset short-term volatility. It's about getting the highest ROI possible."

Alpha Capital currently operates in 12 markets around the country and forecasts property holdings of more than 10,000 units within the next five years.

Smith notes, "If motivated real estate investors, or anyone for that matter, are sitting on capital of $100k or more, real estate syndications can provide many attractive benefits along with passive income. If you want to get involved, even in a limited way, take steps now to make it happen."

About Alpha Capital: Alpha Capital Funds is a real estate investment firm founded in 2017. It partners with investors of all sizes to steadily build out real estate portfolios and maximize ROI. Its wholesale iBuyer division, Alpha Holdings, is a leading off market real estate acquisition firm, working together with Alpha Lending and Alpha Management to offer institutions, investors, and sellers a unique experience. For additional information, visit www.alphacapitalfunds.com and interact with the company on: Facebook, Twitter, Instagram, LinkedIn and YouTube.