The Harvard Business School's Real Estate Venture Competition committee has selected Residential Redevelopment Co. to participate in their 2016 Venture Competition. The Harvard Real Estate Venture Competition is focused on start-ups whose missions reflect innovative approaches to real estate investing, development, design or construction. Last year's finalists have since raised more than $33,000,000 in funding.

The event consists of a full day of semi-finalist presentations in which teams pitch their business in front of a panel of thought leaders and key influencers from the worlds of real estate and investing. The competition will take place during a major real estate conference at Harvard Real Estate Weekend.



Harvard Real Estate Venture Competition @ Harvard Real Estate Weekend

Saturday April 9 - Sunday April 10 | Boston, MA




Catch us presenting on April 9th at Harvard Business School in Cambridge, MA, sponsored by Related Companie, Harvard Graduate School of Desig, and NAIOP Massachusett. See you there!

If you want to learn more about our investments in prefabricated homes, take a look our Investment Opportunities page and find out why so many people are interested in investing as we re-define the world of affordable housing finance through our projects. If you still want to know how Residential Redevelopment Co. works for accredited investors, please review information about our current fund and learn more today.

Here are a few things you should specifically consider if you think using an IRA to buy investment properties could work for you.

Putting your hard-earned IRA assets into a “self-directed” IRA can be a very good idea to grow long-term, tax-deferred or tax-free assets. But it doesn’t work for everyone.

With taxes going up for most people, you might be paying more attention to your tax-deferred retirement investing options, such as your Individual Retirement Account (IRA). And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.

Eligible properties

The real estate you buy must be a business property, not a personal residence, second home or occasional rental. Also, you can’t use your IRA to buy a property you already own; it has to be a new purchase directly into the IRA.

If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name. Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.

You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.

A investing concerns

You can’t get a traditional mortgage loan in an IRA, so you really need to have enough money in your IRA to purchase properties for cash if you plan on having the property as a long-term rental. There are also costs to administering the IRA, so factor those into your calculations when penciling out any real estate investment. And you cannot write off losses or depreciation from any investment property in an IRA, so there won’t be the traditional tax savings you’d get on rental properties. Lastly, if you fail to comply with any of the rules, it may kill your IRA and cause you many tax penalties.

Financial considerations

Don’t put all of your IRA eggs into one basket. Too many people don’t properly diversify their retirement assets — present company included. It would be smart to talk to a financial adviser on how to allocate all your investment savings into different assets, based on your age and risk tolerance.

If you want to use your IRA to buy real estate, you need to understand what you can and can’t do. More key information can be reviewed at udirectIRA, which is a self-directed IRA custodian. And as always you also should get professional guidance from an accountant and lawyer.

Good luck!

View article on Forbes



Multi-family market

The multifamily rental market is in its sixth straight year of robust growth. Demand has kept pace with new supply hitting the market, calming concerns that growth might start to decelerate. It is now clear that the nature of demand is more than a temporary correction stemming from the Great Recession. Favorable demographic trends will support strong multifamily growth into the foreseeable future for the nation as a whole. However, some individual metros are starting to see the impacts of an imbalance between supply and demand.

Demand for rental housing will remain strong for several more years because of a strengthening job market, growth of household formations, and reduced affordability of owning a home. We expect the labor market will add more than 2.5 million jobs in 2015. In addition, affording homeownership remains a challenge for many households, especially for many first time buyers.

Unique advantages that make multi-family an attractive investment:

• High rent yield for stable cash flows
• Possibility for scope of upgrade: Individual owners may have neglected the property operationally or physically
• Stable NOI sell opportunity: Real estate private equity funds, pension funds, and other institutional investors are interested in buying stable income properties where they can hold and continue to receive stable cash flows
• Returns can be increased by using a conservative amount of mortgage debt
• MFRE allows owners to obtain tax advantages, such as the ability to offset depreciation against net income
• Diversify into an asset that often displays counter-cyclical qualities, as seen in the last recession and its aftermath, when millions of would-be homeowners had to rent instead, driving occupancy rates to historic highs in many markets
• Invest in something simple, with no complicated financial engineering or methodology
• As a result, our strategy is to buy, renovate, rent out, hold, and then sell our real estate when we feel the market is approaching a peak.