What the Blackstone Group can teach real estate investors

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• published: 22 Apr 2015
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http://virtualrealestateteam.com. The Blackstone Group is a Wall Street hedge fund that since 2008 has been buying thousands of single family homes in the US, but not in Oklahoma City. The over 50,000 homes they have are concentrated in Florida, Georgia, Nevada, and Arizona, but they have bought elsewhere. This group saw that after the mortgage meltdown real estate values in bubble markets were below the cost of building so they went all in. Many of the homes early on were 50% to 80% off bubble price foreclosures and even though rents were low they did the classic buy low sell high, and they had the cash to wait for a recovery. The recovery did happen earlier than predicted but Blackstone kept buying. The real story here is when you combine yields with the low risk factor, real estate is your best buy to build wealth. Unlike a stock, a home can pay monthly dividends and in Oklahoma City that can be $500 per month positive cash flow. Over a seven year period your annual internal rate of return is often 25% and that is hard to match in stocks. I am not saying that you should only invest in stocks, but real estate so be a significant portion of your portfolio. Real estate markets like Oklahoma City, Tulsa, and Little Rock to name a few didn't suffer the subprime meltdown and have solid fundamentals like other secondary markets. In your real estate portfolio be sure to include low risk markets like Oklahoma City so that a constant flow of capital is in your retirement investments. Blackstone is one of the most successful hedge funds in the world and although as an individual investor you don't have Wall Street capital, you can take a Wall Street attitude toward investing, and for most people like you, a working knowledge of real estate in your personal home gives you knowledge you don't have about stocks. On this channel and also through our personal contact, I want to make sure you have all the knowledge possible to make good decisions, and also to make someone who can temper your enthusiasm so you don't move too far and too fast. I want to help you build wealth for the future, follow the lead of firms like Blackstone with superior research, and also make sure that you have investments that don't make you lose sleep. If you are interested in Oklahoma City real estate investing and a conservative approach, please contact me at joe@joepryor.com.