Much of the country is in a wait and see mode. The good news is Delta variant deaths and infections are starting to drop. For the most part, it seems like health protocols in schools are working and they are able to safely operate. Schools staying open is essential to get people back to work. Labor shortages and supply chain issues top the news cycle. Everything from getting groceries, to having a meal at a local restaurant or trying to buy a new washing machine is a problem. Holiday shopping and travel is a big concern. Will the price increases from increased labor, materials, energy and transportation costs stick after these supply chain issues resolve themselves? The market's resiliency and ability to absorb bad news coupled with inflation fears push both institutional and retail investors to buy assets. Trillions in cash sit on the sidelines waiting for any kind of "sale" or weakness in stocks, real estate, cryptocurrency and any other appreciating asset.
Prices seem to be leveling off for SFRs. Many potential home buyers have given up on the process after losing out and being constantly outbid over the summer. Very low supply and multiple offers, are keeping home prices elevated, just not at the same pace as the summer. It is estimated that LA County needs 500,000 more affordable housing units. Even if you could build a 50 unit building, it would mean 10,000 new buildings. The need for affordable housing is in addition to housing solutions for the homeless. Investment at the state, county and city level via bond measures, tax incentives, rezoning and streamlined permitting process will only push prices up further. The limiting factor is land and buildings suitable for redevelopment. We see the demand for multifamily to continue.
We have had a busy few months and have closed a lot of loans. We have 3 new potential loans to close this month and are raising capital to meet this demand.
If you are interested in adding to your investment we would welcome the new capital and could deploy it quickly. We always appreciate your referrals to new investors.
The fund's assets are secured by recorded first deeds of trust and investors in the fund are diversified over the entire pool of loans. Our priority is to preserve capital and generate stable monthly passive income and high yield for our investors.
Please contact us if you have any questions or interest in the BRC Commercial Bridge Fund. We are accepting new capital.