Our mission is to make real estate investing more accessible. 90% of the world's wealth has been built through real estate, but the process has become increasingly harder and more time consuming for the individual investor. We want to help 100,000 people grow their net worth and achieve financial freedom by using one of the highest-yield and most stable methods to do so.
We are focused on single family rentals (SFRs) because we have seen the capabilities of growth and income generation first-hand. As opposed to commercial real estate, the stability of SFRs is unparalleled when it comes to both income generation and appreciation. The lower price point per property allows for the new investor to enter easily, and the use of SFRs for both investments and primary residences makes the asset class extremely liquid (you can sell quickly when you want or need to). Finally, financing for SFRs is significantly easier than other real estate classes, allowing you the ability to leverage historically low mortgage rates to secure an investment.
A physical asset.
Real estate is a physical, tangible asset that is in scarce supply. The growth in house supply has decreased to record lows over the past 10 years, with no end in sight. Having physical assets in your portfolio is a hedge against economic uncertainty, as they typically (but not always) perform above market average in an economic recession.
In periods of inflation, real estate has a tendency to hold up remarkably well opposed to fiat investments. Real estate prices rise, income generated from rents grows directly in line with CPI, and the debt used to secure the property depreciates in value. For example, a $10,000 mortgage payment during the first year of a mortgage will remain the same nominally but may well only be worth $8,000 in the tenth year, while the property may have appreciated in value 12%.
Major tax incentives.
Earning tax deductions through real estate investing is a powerful benefit that is rarely realized in other investment classes. Deductions include, but are not limited to:
- Interest on mortgage payments
- Property management fees
- Property repairs
- Property insurance
- Property taxes
- Property depreciation
To highlight a basic example, let's assume you purchase a rental property for $200,000 with a down payment of 20% ($40,000). The annual income of the property is $20,000 with $16,000 in expenses, which produces a net income of $3,000. The depreciation deduction allows you to deduct $7,272 ($200,000 / 27.5 years), leaving you with a net loss of $4,272. Because of this loss, you earn the entirety of the net income generated from the property without paying taxes on it.
Let's say you wish to then sell your property in 10 years for $250,000. Using a 1031 exchange, you can avoid having to recapture the depreciation amount and you can roll the $50,000 worth of capital gains into a new, higher-yield investment property without paying taxes on it.
All this together means that you have the possibility of paying little to no taxes, collected $30,000 in passive income, and rolled over the appreciation into a new investment class that yields a higher return.
You can borrow money to invest.
As opposed to other investments, you can borrow money to invest in real estate. Combined with the appreciation of real estate over time, this effectively allows you to leverage and monetize from low interest rates. This is not possible with fractional or market investing.
Just like a standard brokerage, Awning makes money on the commission of the sale. The commission price - typically 2.5 to 3% of the total sale price - is a figure that is worked in to the asking price of the property.
We are glad you asked! Awning makes money on the commission of the sale, and we do not charge any additional fees on top of this. We only make money when you successfully transact on your new investment property.
An Awning advisor is an investment real estate expert whose primary goal is to help you with your investment journey. All of our advisors are licensed real estate agents, and experts in the local market climate. When you sign up for Awning, you will be assigned a dedicated Awning advisor, who will be there for you every step of the way. Whether you have questions about financing, home inspections, or renovations, your advisor will be your point of contact.
Because our advisors are market experts for specific areas, it is possible to have more than one advisor helping you with your investment search. For example, if you are looking in both Texas and California, you may have two advisors assisting you with your investment journey.
Typically, we find that our investors have had optimal success with at least a 20% down payment and use financing to cover the remainder of the property. As home prices are variable depending on the type and location of the investment, you can use this number plus an additional 5% for assorted closing costs as a conservative calculation for how much you could expect to spend upon transacting on your investment home.
We are working to rapidly expand our service offering to several markets. Please either contact your advisor or email us at email@example.com to see if we will be in a specific market in the near future.
Of course! Remote buying is our specialty. No matter where you live, we can help you find a market that meets your investment goals and make sure that you feel as though you have spent weeks in that market (without ever booking a flight).
Our current focus is helping individuals invest in single family rentals. For a number of reasons listed above, we consider single family rentals to be the best real estate class for the part-time investor.
We identify our properties through the market MLS (Multiple Listing Service). On a daily basis, we analyze all properties that come to market in our target locations, perform calculations on top of the data that we receive, and then surface the top opportunities that match your investment goals.