Adapted from the September 2023 PREP Newsletter
I write this letter with a very heavy heart, filled with extreme pain and sadness over the recent horrific and brutal terrorist attacks on our brothers and sisters in Israel. As you will read when you scroll below, the PREP team has supported several organizations, and we intend to continue to do whatever we can to help.
Several weeks ago, I served as the keynote speaker at a real estate industry event, and the topic of my presentation was “do well to do good.” That message couldn’t be more relevant during this difficult time for the Jewish community. And so, as challenging as it may be, we must continue on our path of doing well (financially), so that we can support the initiatives that are important to us.
The general state of the U.S. economy remains resilient, with recession worries pushed to 2024, and growth and employment beating expectations. As far as the financial markets, the third quarter was mostly negative, with the S&P 500 down 3.3% during the quarter. Housing and energy prices continue to remain heightened. In 2022, inflation reached the highest level in over 40 years, but inflation is expected to fall dramatically over the next year.
Now to my favorite part: multi-family real estate. The allure of multi-family investing is as strong as ever. Several factors, including exorbitant homeownership costs and climbing interest rates, have intensified the demand for multi-family housing. Potential homeowners are deterred by the mounting financial gap between renting and owning.
Our formula for growth remains steady: we seek out the best multi-family opportunities in prime locations, giving our investors unmatched access to great deals and exceptional returns. Our investment approach allows us to target assets in specific U.S. markets that we believe have the fundamentals to support growth. As the costs of home ownership continue to rise, apartment rents are comparatively quite attractive. We have, of course, been executing our value-add strategy, making strategic improvements to assets, resulting in the thriving financial health of our portfolio.
PREP continues to build on our compelling track record in 2023. With over $438MM in assets under management and 2,307 units owned, PREP is thriving and continues to expand. As our team grows, so does our capacity for more investments and additional investors. If you are enjoying the great benefits of your personal PREP investment portfolio, please do share us with your network.
Thank you, our valued investors, for the continued trust and partnership. Wishing you a healthy, happy and successful remainder of 2023!
