Patrick White is not your ordinary player in the market. While others are looking to invest in properties with upscale design and luxury amenities, Patrick is looking elsewhere. He focuses on buying distressed properties in rural areas, renovating to fix their many deferred maintenance issues, renting at roughly double the national average CAP rate, and offering the returns to semi-passive investors like himself.
He found himself doing this in 2018 when poor management and harsh weather left much of the housing stock of rural agricultural America in severe disrepair. Many properties became uninhabitable during a decade when demand for low-income housing rose to an all-time high. The result is a self-sustaining agricultural micro-economy where rents are high, and property values are low hence, a true buyer's market. Patrick is showing potential investors why overlooked markets are savvy investments, despite their poor curb appeal.
Patrick is looking to partner with investors who want to own rental property, but can't manage it themselves. "It's no secret that those who invest in real estate have a strong chance of becoming wealthy in the future," he says. For Patrick, it is important to acknowledge that all investments carry risk and investing in real estate is no different. He is confident in his business model, but still encourages potential investors to do their due diligence before making a decision. For him, all investments are risky, however, the risk of loss is mitigated by the low property values, and strong prices of agricultural commodities produced in the region.
He thinks places like this are the new frontier for real estate investing. Between 1970-2008, real estate investors made fortunes while property values exploded in the markets we're now familiar with. That ended in 2008, but most investors do not realize that high-cash returns still exist in areas they'd never expect; rural agricultural self-sustaining micro-economies. Patrick believes these micro-economies are recession-resistant because property values are low, demand for rental units is high, and the four most exported agricultural resources are produced locally; corn, soybeans, pork, and beef.
Mid American Properties, LLC acquires and manages properties to sell or rent, delivers above-average & stable returns to its investors, and facilitates an online marketplace for real estate & housing in Southern Minnesota.
You may visit www.midamerican.properties or send them an email at Info@midamerican.properties to know more.