Current PPR Reviews

Investor · Lynchburg, VA · Member since 2016 · 37 posts · 24 votes

I was searching for a PPR Review within the last year and I think the most current one I could find was from 3 or 4 years ago. I wanted to confirm that to date they have never missed a payment and always returned principal?

I'm new the notes world and frankly the 3-year locked in PPR preferred return of 12% seems almost too good to be true if they in 16 years have never missed a payment or failed to repay principal. Obviously past results are not necessarily indicative of future performance, but it seems like a great investment for accredited investors to get a low-risk, solid return in exchange for some illiquidity.

8 Reply

1,787 views

Most Popular Reply

Dave Tasset

Investor · Cincinnati, OH · Member since 2016 · 1 post · 8 votes

I can also vouch for Dave VanHorn and PPR. I have been a PPR investor since 2019 getting anywhere between 8% to 12% return over the years with no payments ever missed. I have found this much easier than being a private lender. I also usually compound the return by reinvesting my payments, so the present 12% fund effectively returns 14.38% which is pretty awesome.

I do have a fairly high percentage of my net worth (35%) in the PPR fund. Does anyone have another good fund similar to PPR that I could get some diversification? Please advise. Thanks!

8 Reply

See this reply in the discussion

69 Replies

Jump to latestLatest

Sort by

Chris Wilson
Coupeville, WA · Member since 2016 · 93 posts · 73 votes
2y
@Daniel Na
https://www.wikihow.com/Calculate-Compound-Interest
0 Reply
John ThoppilPro Member
Member since 2022 · 1 post · 2 votes
1y
It seems the company model has changed a little. I understand they may do up to 30% actual real estate, mfh mainly.
That is a higher risk IMO, especially in this market. I already have a lot in syndications and wanted to diversify. How are they better operators then everyone else in that space?
The return to investors is the same. They are taking more risk and have some leverage. That gave me pause. Thoughts?
2 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
For any of these real estate funds that have guaranteed rates of returns for set periods I would want to understand how my investment is secured. It seems that many of these companies are accepting investment in return for unsecured loans and new capital is constantly being raised to pay off investor redemptions. I am sure many are actually purchasing real estate with these unsecured loans but the investors are not really benefiting from the real estate, they are merely making a fixed return and providing inexpensive equity sources to those who actually own the real estate. What happens when new investments stop coming in? How do you continue guaranteeing a rate of return or redemptions when the asset class is real estate which is not liquid?
[email protected]
2 Reply
Eric E.
Residential Investor · Allentown, PA · Member since 2012 · 95 posts · 29 votes
1y
Has anybody invested in PPR within their Roth IRA? (which I'm considering). Need I be concerned with UBTI?
2 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
1y
@Eric E. Investing in a mortgage fund should not have tax implications for your Roth IRA since the investment is passive.
2 Reply
Hank Hernandez
Member since 2022 · 1 post · 0 votes
1y
Quote from @Eric E.:

Has anybody invested in PPR within their Roth IRA? (which I'm considering). Need I be concerned with UBTI?

Eric, they have a version of the notes fund that avoids UBTI, but you need to ask for it when making the investment.
0 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Eric E.:

Has anybody invested in PPR within their Roth IRA? (which I'm considering). Need I be concerned with UBTI?

Not specific to PPR but with any fund you have to ask two questions:
1. What are they investing in AND
2. Do they have any debt
Just because you are a note fund does not mean you do not have debt. Many note funds take on debt from larger lenders or lines of credit against their assets. Also just because they have debt does not mean there is tax consequences.
Also people need to make sure they do not group UBIT, UBTI and UDFI in the same buckets as I see these being used interchangeably. Someone can say sure we do not have UBIT but they could have UDFI
7e investments53 Reviews
Website View Page
2 Reply
Doug Effinger
Member since 2023 · 14 posts · 8 votes
1y
Quote from @Bryan H.:

Quote from @Dave Tasset:
I can also vouch for Dave VanHorn and PPR. I have been a PPR investor since 2019 getting anywhere between 8% to 12% return over the years with no payments ever missed. I have found this much easier than being a private lender. I also usually compound the return by reinvesting my payments, so the present 12% fund effectively returns 14.38% which is pretty awesome.

I do have a fairly high percentage of my net worth (35%) in the PPR fund. Does anyone have another good fund similar to PPR that I could get some diversification? Please advise. Thanks!
Check out Norada Capital with a simple no fees structure and 12-15% annual yield depending on how much you invest.
https://noradacapital.com
Been around 10-12 years and have great track record - never not paid apparently. I am considering them myself but have not invested yet.

Norada Capital defaulted on their promissory notes in June of 2024. They are still working through the mess to hopefully repay investors.
1 Reply
John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
1y
I am a fan of PPR funds and 7E investments. I have both within my IRA. I like their track record and the fact that their underlying assests are mortgages and not some speculative project with capital calls. Can anyone else recommend any other reputable mortgage note funds out there?
2 Reply
Lauren Sanford
Investor · Member since 2024 · 182 posts · 63 votes
1y
@John M. Our podcast "Real Estate Notes Show" Partner Nathan Turner also has a fund.
0 Reply
John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
1y
@Lauren Sanford
Yes I am familiar with Nathan Turner, but have not invested with him. There are a handful of guys that offer 8% preferred returns but PPR is king at 12% and some other private equity is at 10%. Anything above 10-12 percent is just a projected IRR # that may not come to fruition.
0 Reply
Kim Tucker
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
7mo
Everyone still happy since they grew so much in the past year or so with all the diversification into joint ventures and lending on other deals.
1 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
7mo
I've been investing with PPR since 2017, and so far great experience.
For diversification, I also invest in the Marshall Reddick Mortgage Fund. The return is lower, but they have a great track record. They only invest in 1st TD with a historic default of only 0.6% on the fund level. You can pull your capital out after year one, and unlike PPR, you don't have to wait two months for your capital to be deployed in the fund.
https://www.marshallreddick.com/fund/marshall-reddick-mortga...
2 Reply
Jamie Bateman
Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
7mo
I am invested with PPR and 7e and my own mortgage note fund. PPR is lowering their pref as of this month, which makes sense given the environment we are in.
0 Reply
- Chris SeveneyBusiness Member
  Moderator
  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  7mo
  Quote from @Jamie Bateman:
  
  I am invested with PPR and 7e and my own mortgage note fund. PPR is lowering their pref as of this month, which makes sense given the environment we are in.
  
  What are they lowering it to, and how is it taxed (curious)
  7e investments53 Reviews
  Website View Page
  0 Reply
- Joseph S.
  OP
  Investor · Lynchburg, VA · Member since 2016 · 37 posts · 24 votes
  7mo
  Quote from @Chris Seveney:
  
  Quote from @Jamie Bateman:
  
  I am invested with PPR and 7e and my own mortgage note fund. PPR is lowering their pref as of this month, which makes sense given the environment we are in.
  
  What are they lowering it to, and how is it taxed (curious)
  
  Hey Chris,
  They are lowering it to 11% if you compound and 9% if opt to get paid out. It is taxed as ordinary income if not held in a retirement account and if it is held in a retirement account there is no UBIT/UDFI in the Freedom Fund option.
  Hope you are well!
  
  Regards,
  Joey
  
  2 Reply
John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
7mo
PPR has the best Pref in the business. Haven't found anyone yet to beat it when it comes to mortgage notes
1 Reply
Kim Tucker
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
4mo
Any feed back on Aspen Funds (they are in Kansas City) or Eckard - the oil and gas company
0 Reply
- John M.
  Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
  5d
  Aspen funds are not the same as a mortgage note fund. The type of assets and returns are different.
  0 Reply
Rex Hale
Member since 2020 · 6 posts · 3 votes
4mo
I have looked into Aspen Funds but I don't like that they take 3 months before your money gets used, that is 3 months of no interest! I do like the fund and the people around it though. The 9% is a bit undersized compared to PPR so I went with PPR instead and am happy!
0 Reply
John R Olson
Lender · DFW Area · Member since 2023 · 11 posts · 2 votes
1w
Well, I wish I had better news to report, but I invested in a 12 month lock up April 2024 that matured in April 2025. It was compounding, deferred interest at 10.47% I just requested a full redemption of principal and interest and received a call from one of their new IR reps, who regretted to inform me that they will not be able to redeem my full investment due to challenges with their multi-family assets. Thank goodness I dipped my toe in with them, so it is not a large amount that will cause me any financial stress. I sent their IR team a follow-up email requesting full redemption, as I fulfilled my commitment a year and a half ago and just left it in there to accrue interest. We'll see what they say....I would express caution to anyone looking at investing right now. Honestly, if they can't fulfill my small redemption, that makes me wonder how illiquid they are.
1 Reply
- Chris SeveneyBusiness Member
  Moderator
  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  1w
  Did they mention anything besides what these challenges are? This is not specific to PPR but I was talking to another sponsor last night who is coming up against maturity wall and lender is not working with them. They are 1/100th the size of PPR so for them its a big deal and they are trying to find equity partner etc. They are scrambling because they are not refinanceable at current debt and would need about an extra 1.5M on a 4M deal.
  7e investments53 Reviews
  Website View Page
  0 Reply
- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  1w
  Chris I bet there are hundreds if not thousands of deals in that exact same boat.. I have one personally were my rate is going to go from 4 to now probably 7 the bank will do it but rents dont keep up with rate expansion like this.. So in my mind I am just going to have to pay the loan off during the 90 day period there is no pre pay penalty. Its a 10 year loan.. But what will happen is the DSCR will get out of wack and they will want a pay down etc etc.
  I guess mathematically it would be better to just pay down the note to bring it into DSCR compliance However I just need to make sure I can pay it in full with cash on hand so I dont have to worry about it and try to find a replacement loan.
  This was super common in the GFC loans that matured are in good standing banks would not roll them over for any reason. No other lenders lending at all owners were stuck.. those with good cash reserves made it through the refi till you die max leverage crowd got killed.
  Podcast Guest on Show #222
  JLH Capital Partners51 Review
  Website View Page
  1 Reply
- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  1w
  My take on this is the market is tough right now especially MF.. So retention of cash is paramount for these companies these were not CDs that you can just call. So U dont want to have a run on the bank and run the sponsor out of cash. To get through these times I suspect the company is doing the prudent thing I know from investors point of view they see it as a default of sorts. However we have to be realistic unless the investment is basically FDIC insured there is always the risk that something like this can happen. And the investor has to be aware of this going in.. I am sure the sponsor would love to be able to give the redemption as its seems to be a big marketing point for them. However as I stated they have to do what best for the greater good and if retaining capital is the greater good then thats what you want them to do. Anytime your paying double triple CD rates there is risk as we know.
  Podcast Guest on Show #222
  JLH Capital Partners51 Review
  Website View Page
  2 Reply
- Joseph S.
  OP
  Investor · Lynchburg, VA · Member since 2016 · 37 posts · 24 votes
  6d
  @Jay Hinrichs This is a completely fair point. For me, you just hope the sponsor is doing everything possible to preserve capital. I would not get too worried if my redemption gets delayed a few months or if there was a temporary pause in paying current pref, but my big fear is loss of principle. If sponsors notice a problem and don't wait with the strategy of hope, often times they can get ahead of things and make sure capital is preserved, even if there are temporary annoyances of delays on redemption and current pay of pref.
  0 Reply
- Arthur Johnson
  Oakland, CA · Member since 2016 · 5 posts · 0 votes
  6d
  I also tried to redeem my investment at the maturity date and received the same call that they are experiencing challenges and may not be able to full redeem my investment. This call happened on Sept 21st, 2026. @John R Olson when did you hear from PPR that they couldn’t redeem your investment?
  0 Reply
- John R Olson
  Lender · DFW Area · Member since 2023 · 11 posts · 2 votes
  6d
  Yes sir, I think the same day.
  0 Reply
- Stuart UdisPro Member
  Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
  6d
  @Joseph S. @Arthur Johnson @John R Olson Have you verified each of your investment is in the same fund?
  [email protected]
  0 Reply
- Arthur Johnson
  Oakland, CA · Member since 2016 · 5 posts · 0 votes
  5d
  I’m in the Reliant Income Fund
  0 Reply
- Joseph S.
  OP
  Investor · Lynchburg, VA · Member since 2016 · 37 posts · 24 votes
  5d
  @Stuart Udis I think we're all in the Reliant Income Fund Or Reliant Freedom Fund (for IRAs to avoid UBIT), as besides their car wash fund, that is the only mature fund.
  0 Reply
- Stuart UdisPro Member
  Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
  5d
  @Joseph S. There are numerous investor classes that share equal priority for distributions and redemption rights. If a large number of investors request redemption at or around the same time, that could create a liquidity strain and potentially explain the pause. Keep in mind that this fund invests in real estate and related assets. The balance sheet reflects a broad mix of notes, various joint ventures, business loans and other investments that cannot necessarily be converted into cash quickly. The manager has to balance capital deployed into income-generating investments with reserves for distributions, operating needs and redemptions. Holding more cash provides liquidity, but that capital still accrues the investors’ doubledigit preferred return while potentially earning substantially less sitting in an account. Deploying more capital may support returns, but leaves less cash available when redemption requests arrive. That tension is why funds offering fixed preferred returns often give the manager contractual authority to limit or suspend redemptions and discretion over distributions.
  
  A redemption option needs to be understood alongside those restrictions and the liquidity of the underlying investments. If any fund offers a fixed rate return for finite redemption periods its important to understand the liquidity of the underlying assets. Key factors to consider are how liquid in nature are the investment strategies? Some assets generate more operating income than others Keep in mind that doesn't necessarily mean one is a weaker investment. Great example: A well-run hotel can be acquired and may generate more operating income than a multi-family building built ground up and needs time to stabilize and before being sold or refinanced. That multi-family building can still be sold or refinanced with favorable terms but doesn't generate liquidity events as quickly. Refinancing may also not be an option due to the current interest rate and higher opex environment. Therefore understanding the leverage of assets is really important as well. Lower levered assets are easier to generate liquidity events, even in markets like this through refinances which hare not available for higher levered assets. This is why passive investing is not really passive. You really have to take the time to get into the weeds and understand the assets that are going to generate the liquidity events necessary for your capital to be returned. This part gets dismissed most frequently in fixed rate offerings.
  [email protected]
  1 Reply
Joseph S.
OP
Investor · Lynchburg, VA · Member since 2016 · 37 posts · 24 votes
1w
This would be quite concerning. I know lately that they have more strictly adhered to their PPM, which I think requires 90 day notice (at least for the 3 year lockup, not 100% sure on the 1-year lockup). Are you saying that they are not going to honor the 90-day notice? Did they say their multifamily was challenged or that just the nature of it being illiquid means they need the full 90 days to provide liquidty?
0 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1w
@Joseph S. If you read PPR’s offering materials closely, there are provisions allowing it to withhold distributions. It's common language in any income fund type of structure. To me, the broader lesson is about liquidity. Real estate is an illiquid asset. We all know this, so how can an income fund suggest a precise timetable for returning investor capital? Especially when there are times where 1 year (I've even seen 6 month) lock ups offered.

Meeting redemption requests requires asset sales or a continuing flow of new investment capital. Reliance on new capital does not, by itself, make a fund a Ponzi scheme and don't want the conversation to turn there. The underlying investments may be sound but an evergreen type model may still be necessary, particularly if the underlying real estate is not being sold rapidly enough. But investors should understand when fund structure cannot meet its obligations from property cash flow and asset sales, the underlying real estate collateral owned by the fund deserves a close look under the hood.

That matters even more in today’s market. When transactions slow, debt costs rise, operating and capital expenses increase reducing generated cash flow, and investors become more cautious because of the amount of news that's visible online about failed syndications, a fund has fewer ways to generate cash. Paused distributions or paused redemptions is an expected result.

Not suggesting this type of model cannot work today, but when vetting this type of syndication, I want to understand the leverage of the underlying assets, amount of cash that still must be returned to investors and the hardest part of the diligence is understanding the types of assets and knowing whether the strategies stand up to the realities of owning and operating real estate in 2026 and into the future. A strategy that worked when financing was cheaper and exits were easier or when opex and capex were substantially lower may no longer pencil making past purchased real estate more obsolete today. This is the diligence process that must be taken into account, not merely "this syndication always paid their distributions on time".
[email protected]
1 Reply
- Chris SeveneyBusiness Member
  Moderator
  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  1w
  Reading is essential. I have also seen where people have misinterpreted what was told to them etc (not saying this is the case here), but a good example I also saw was someone saying they are not getting distributions from a fund and were up in arms. Well two things were going on - they were logging into the wrong portal and they had signed up for direct reinvestment (where you do not get a distribution in your bank account it is reinvested). People got up in arms online about that sponsor only to find out there were no issues.
  7e investments53 Reviews
  Website View Page
  1 Reply
- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  5d
  Maybe its just harder to raise new capital and they were using new capital to pay redemption s as a courtesy but not an obligation to do so per the PPM.
  Podcast Guest on Show #222
  JLH Capital Partners51 Review
  Website View Page
  0 Reply
John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
5d
I've had a good experience with 7E and PPR. It's common in the mortgage note business to have 1 -3 year lock up periods. To me it's just like a CD on steroids. Everyone should have these in their portfolio. The underlying asset is a physical asset which is a house, which they can take over if there are any defaults on the mortgage. Remember they have 100's of these notes in the fund most of which are performing notes! These are pretty boring but great cash flowing assets. It's the projected 25% IRR funds (non mortgage notes)that you see on facebook or other sites that you have to be cautious of. Maybe 25% will happen, maybe it won't but mortgage notes are more predictable and that's why people invest in them.
1 Reply
- Stuart UdisPro Member
  Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
  5d
  @John M. The people commenting are in the reliant income fund. While the fund invests in notes, the fund also invests significant money in various types of non-note related JV's, supplies business loans, purchases multi-family buildings and undertakes numerous other investment strategies. This is all disclosed in the PPM and OA. There's also numerous classes, and while the fixed rate and redemption periods may differ, they are treated pari passu meaning receive the same redemption and distribution rights. I can't say I know anything about the underlying assets the capital is being invested in, but the company has experienced leadership and would give them the benefit of the doubt they are investing the money wisely. However, it's factually incorrect to say it's a note fund and to say any private placement is a bond on steroids deserves you compensation as a spokesperson for said private placement. While note investing still remains a key part of their investment business, I assume that's the origin of the company. The balance sheet and investment permissions say otherwise.
  
  Personally, if my return is fixed and I have no participation in the upside, I want the fund’s permitted investment activities to be narrowly defined. There is also no guarantee. That’s just my preference. For many investors, a track record of never missing a payment is what matters most. I care more about the investment activities necessary to generate the cash needed to return my money with double digit returns. Therefore, the conversation should not be on track record of payments, certainly not calling any private placement a bond on steroids. Instead focus should be on the underlying assets and what must transpire for redemptions to resume.
  [email protected]
  1 Reply
- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  4d
  thats why there is the statement past performance does not dictate future performance. relying on what has happened with past performance can be risky we have seen this on BP a ton.. Norada ( all the investors jumping in saying never missed a payment until the whole thing cratered) Clayton MOrris and their investors same thing.. Never missed a payment until it all cratered and so many jump in without really understanding what they are investing in. OPen door with all its issues folks jumping on the band wagon with a BP personality figuring no way they could have issues. etc etc.
  
  the critical thing in my mind is ownership and management great ownership will get you through the rough spots.. those with little to no background like we have seen on BP the last 4 years with the brand new no experience syndicators they crater.. I suspect PPR will work through this based on what I know of the company
  Podcast Guest on Show #222
  JLH Capital Partners51 Review
  Website View Page
  2 Reply
John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
4d
It is true that PPR's income fund has some other assets besides notes, but the majority of the portfolio is notes which makes it a conservative investment for me. I don't have a problem with them investing in other housing as the principle is the same...I.E we have a shortage of housing and just like notes, the rental income is predictable. Most High net worth investors are replacing bonds in their portfolio with similar predictable assets. The old 60/40 rule is dead. It's not just note funds, but it can be private credit or commercial real estate income funds. The returns speak for themselves so yea a bond on steroids! For me I have about 95% of my portfolio in commercial real estate so I need some exposure to the residential world.
1 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
4d
@John M. My concern with your most recent post has nothing to do with syndications. I would urge you to consider a more specific investment thesis than “there’s a housing shortage and rental income is predictable.” That is an overly simplistic way to evaluate real estate investments.
Yes, we need more housing, but construction costs, zoning and administrative burden have created barriers making it difficult to deliver housing at prices people can afford. Especially where there is most demand. What we've seen is a surge in housing where there's been the path of least administrative resistance and lower labor costs because material costs are largely the material cost anywhere you build. The wave of new inventory in many Sun Belt markets demonstrated that merely delivering more housing does not necessarily solve the underlying problem because you still need rents to justify the cost of the construction and warm bodies to fill those housing units.
The other challenge is the ongoing cost of ownership. Even relatively stable rental income does not guarantee predictable cash flow when insurance, taxes, maintenance, payroll, and debt service are increasing. An investment needs achievable rents that support both the initial acquisition or development cost and the ongoing cost of operating and maintaining the property.
This points toward developing in markets where an affluent consumer base can support the rents or sale prices needed to cover higher construction costs and ongoing operating expenses. Unfortunately, those markets often have more restrictive zoning, more challenging zoning relief processes, and other barriers to entry I mentioned above. That tension is precisely what makes it so difficult to deliver housing that pencils in today’s market. That's also where I want my money invested because being on the correct side of the supply demand equation is where you want to be. Hope this helps.
[email protected]
0 Reply
Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
3d
Since we are pivoting to overall investment thesis of housing/apartments, I will add to Stuart's point. Rents are only consistent if tenants can afford them. Rent growth has pretty handily outpaced wage growth, and that does not factor in fuel, food, and other inflation.

While I am not 100% against apartment investing, at the end of the day, I do not see it as a blanket winning strategy that it used to be. Tenant application fraud is very, very real, across all apartments. Technology makes it easier to fake bank statements, pay stubs, etc. And given most large management companies DO NOT call employers or banks to verify income and balances, you run into real issues with rents being consistent.

I have seen it in some of my apartment syndication investments. Beyond the property taxes, insurance, payroll, maintenance and repairs all growing faster than rents in many markets, compound that with fewer qualified renters at the "value-add, post renovation rents", landlords moving from 30% rent to income ratio to 40%, and all of a sudden a tenant is deciding between feeding themselves and family, putting gas in car to get to work, or paying rent.

This isn't meant to be political at all, it is simply facts.
1 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
3d
@Evan Polaski Well said. To bring it full circle, costs are leading reason why rent prices have gone up. The only way to justify the cost of going vertical or even substantial value adds is to project rents that have proven to be unachievable in large swaths of this country. This is exactly why I keep saying buy and develop where values and rent can absorb the realities of today's cost and where there are consumers able and willing to spend. Unfortunately, those locations tend to be the barrier markets so instead people keep seeking out the path of least resistance and regurgitating the same capital raising sale pitch of housing shortage, need for affordable housing etc. etc. Yes, its true, we have a housing shortage and affordability problem but it's not a problem private developers can solve.
[email protected]
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.