For the last century, investing in real estate has been a great way to diversify your portfolio and earn above-average returns. When done properly, many expert opinions state that investing in real estate is the highest yielding asset class for an individual's portfolio.
Before we provide the top 5 reasons to invest with Coastal, here are 5 reasons why you should consider investing in Real Estate:
1) From a risk standpoint, Real Estate investing CAN BE SAFER than other types of investments. When you invest in real estate, your investment is secured by a specific asset; either a building, the dirt and/or the income. Even in down markets and during recessions, real estate investing has notoriously been a great hedge against inflation. 2) From a variety standpoint, Real Estate investing provides investors with MANY OPTIONS. Whether investing in core, value-add or real estate development, there are various asset classes you can diversify into. For example; long term rentals, short term rentals, industrial, multifamily apartments, hospitality, build-for-rent homes, land, and/or essential retail – there are endless options based on your investment objectives. 3) From a long-term standpoint, Real Estate has HISTORICALLY APPRECIATED in value over time. Real Estate investing provides both natural appreciation and intentional appreciation. Natural appreciation is when your assets appreciate with the market (IE- like with inflation). Intentional appreciation is when you decide to increase the value of your asset, over a period of time. In this case, think about the effects on a property's value by replacing the roof, upgrading the kitchen or flooring, or increasing the curb appeal. All of these improvements should increase the assets' value. 4) From a return standpoint, Real Estate allows for earning PASSIVE INCOME. By far one of the best reasons to invest in real estate, is that it can provide investors with passive income. Many investors rent properties (either short-term or long-term) to tenants where the income supersedes their debt service. A common financial goal is to have one's passive income exceeding their earned income. By investing in real estate you can earn annual returns that help add additional income and potentially retire earlier. 5) From a tax standpoint, Real Estate provides many TAX BENEFITS. Many of the wealthiest people invest in real estate (mostly) for the tax savings. A few of the many tax breaks you can receive by investing in real estate are depreciation deductions, repairs and maintenance deductions, management and operations deductions, and property tax deductions.
The Top 5 Reasons to Invest with Coastal
1) We invest our own capital into our deals.
Many companies that syndicate or raise the capital for real estate investments will never invest their own capital into their deals. At Coastal, we have been investing into real estate for decades. As our private family office was formed, the partners of our company invested over $20MM into multifamily development projects well before entertaining the idea of bringing in outside capital. Fast forward to today, Coastal now provides accredited investors access to invest alongside of the Coastal team. The philosophy of 'eating our own cooking' exists as we looks out for our investors' pockets, just like their own.
2) We’ve never lost a dollar of an investors principal.
Coastal has a seasoned advisory board that performs the due diligence for each real estate investment sponsor and each individual deal. Part of this due diligence process is confirming that our sponsors, who are responsible for executing on the investments, have never lost a dollar of an investor's principal. Coastal’s focus is on capital preservation first and foremost, followed by growth.
3) Our developer partners have unparalleled track records.
For a potential investor, a real estate sponsor's track record is paramount. It provides valuable insights into the company's credibility, expertise, and ability to deliver on promises. Coastal only partners with the best-in-class institutional developer sponsors in the United States who maintain unparalleled track records.
We evaluate our sponsors credibility by understanding their past performance, ability to identify lucrative opportunities, execute sound strategies, and manage risks effectively. This typically assures potential investors that their capital will be managed responsibly and with a focus on maximizing returns. Investors can make informed decisions and align their investment goals with a firm that has a history of delivering on its promises.
4) We are the manufacturer.
While any firm can provide access to retail real estate investments, our intimate level of participation is directly alongside the developers. Our sponsors are vertically integrated and provide everything in-house- from the land acquisition and zoning, to construction, to leasing and management, all the way to the exit.
Think about it this way: When you buy something at retail, there is a markup from the wholesaler. The wholesaler, buys direct from the manufacturer. Think of Coastal as the ‘manufacturer’ of these opportunities. And since we are on the ground level of these projects, unlike retail investments, we feel we are better positioned to provide our investors with better returns; returns that should outperform the public markets.
5) Income + Capital Appreciation + Tax Benefits We spend an enormous amount of time to get to know our clients individually, helping them realize what their investment objectives are. Based on these objectives, whether it be passive income, capital appreciation or high-level tax benefits, Coastal can provide many options to best suit our investors' needs, based on the variety of asset classes we invest in and the different sponsors we work with.
To learn more about Coastal, download our free 'How to Get Started with Coastal' guide at the link above and begin your investment journey. There is a wealth of information about Coastal Investment Company in this guide.
If you'd rather speak with a member from our Investor Relations Team, you can Schedule a private 1:1 call, or you can anonymously join one of our Upcoming Webinars below.