( MENAFN – EIN Presswire)
Workforce Housing Development Business
Investment in Workforce Housing as Safe Harbor
With a recession, bear market and climbing inflation, should investors look to invest in workforce housing as a safe harbor?
The shortage of workforce housing is growing.As a result, I expect the market value and pricing of this segment of the housing market to grow steadily over the next seven to ten years.” — Karl Dakin, CEO, Housing O2 LLCCENTENNIAL, COLORADO, UNITED STATES, July 13, 2022 /EINPresswire.com / — As Housing O2 LLC is raising private money for the development of workforce housing, it is receiving questions on the merits of investing in workforce housing.Investors are looking for a safer place to park their investment money while the stock market and crypto currency prices are falling and interest rates are climbing.Karl Dakin, Chief Executive Officer of Housing O2 provided a series of answers to this question regarding investing in workforce housing and the HO2 Acquisition & Entitlement Fund LLC (the ‘Fund’).
“The Fund will provide scarce pre-development financing to a series of workforce housing projects of Housing O2 LLC.The Fund is a single component of an innovative system to privately capitalize housing construction resulting in home ownership by low-income, full-time workers.There is a significant difference between privately funded ‘home ownership’ and government tax credit subsidized ‘permanent rental’ investment models.”
“Each investment by any investor is unique in its ability to match the investment goals of the investor at any given time.This sounds like a cliché statement, but investments in real estate are not like investments in the stock market and more analysis is needed by an investor before making an investment decision.
Most people, including most investment advisors, lack the training and experience to make this type of investment and should look to a qualified individual for assistance.”
“The shortage of workforce housing is growing.I expect the long-term demand to remain high.As a result, I also expect the market value and pricing of this segment of the housing market to grow steadily over the next seven to ten years.When compared to overpriced Wall Street stocks, crypto currencies without underlying assets or speculative real estate ventures, I am happy to be working with investors who are interested in workforce housing.”
“Development of workforce housing takes time.Therefore, an investor typically will have to wait until the completion of the development, construction, and sale of housing units before they may get their money back and realize any share of profits.
This entire process may take two to five years.There is no instant ability to cash out from real estate investments like may be found in publicly traded stocks.”
“Rates of return on workforce housing projects are necessarily lower than an investor may realize from other investments as every nickel and every dime spent on land, entitlement, engineering, construction and sales must be carefully managed to keep costs low to achieve ‘attainable’ pricing of quality finished housing units.
However, successful workforce housing projects may be expected to make a reasonable profit without investors having to fear wild pricing fluctuations.”
“The risks of bad market variables that may impact a workforce housing development are many.Aside from natural disasters and negative government actions (or inaction), each project faces many common business challenges involving people, supply chains, price changes and politics.While experience and planning may avoid or limit the downside of these variables, there is no such thing as a project that is free of risks.”
“Although we commonly employ a two-stage funding model that offers higher rates of returns to investors in the pre-development activities of land acquisition and entitlement than on later stage construction activities, we are most attractive to stakeholders in the housing industry who gain an additional benefit from our overall success.This includes employees, employers, local communities, vendors of construction products/services, manufacturers/fabricators of housing, utilities, and lending institutions.”
“We are working to set up and manage as many workforce housing development projects as soon as possible to help local communities survive and thrive.
We want to make a dent in the estimated 5.5 million housing unit shortage.”
Housing O2 LLC is engaged in the development of workforce housing projects to provide needed housing for full-time, low-income workers and enable local communities to recover from COVID.Interested investors and partners may contact Housing O2 LLC to discuss whether their investor goals match with workforce housing development projects.Karl Dakin
Housing O2 LLC
+1 720-296-0372
email us here
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