Therefore, even with the volatility of the actual estate sector, it stays a terrific tool for investors.
“There is critical demand for rental properties,” said Jeffrey Lemieux (pictured), managing director of Acra Lending’s correspondent lending and investor lending division. “This is primarily on account of the continuing shortage of housing. Ten percent (10%) of all apartment buildings ever inbuilt the United States had a 3rd bedroom. This forces people to own single-family homes because we’re human beings. We have children, we want a 3rd bedroom.”
He noted that houses should not being built fast enough to fulfill demand. That “really says why it’s still good for people buying and investing in real estate.” Higher rates of interest also mean “fewer people can afford to own a house,” which “leads to creating much more demand,” Lemieux said. “So they may must go along with the default solution, which is to rent a house. So the rate of interest environment is actually driving more demand for rental properties.”
Rising rates of interest also mean fewer people may qualify for a mortgage, where private lenders equivalent to Acra are popping up.
“Acra is a frontrunner within the private lending sector,” said Lemieux. “We have a really strong balance sheet and we’re well capitalized. This is crucial thing for the corporate to be available to its customers. You have to be well capitalized, especially in the world of private loans.
