2023 Year in review & 2024 projections

We're starting to wrap up our year at Presidents Club Investors, and are extremely happy about the new acquisitions this year has brought!

As we approach the end of the year, we're set to close our high cash flow short term rental fund by December 14th. Please submit your information to this form if you'd like to hear more about it: Learn More - Short Term Rental Fund

2023 Acquisitions

Short Term Rental Fund: As we saw cash flow drop in the apartment investing space, we looked for alternative asset classes that could offset a lower cashflow environment.

After analyzing a ton of potentials, we found short term rentals fit our blend of cash flow, equity growth potential, and risk mitigation.

With less than 3% of short term rentals being institutionally operated, we felt very good about the upside this asset class can bring. Historically, once institutions find their way into an industry (like they have in apartment buildings over the past few years), cash flow and overall yields tend to decrease.

To date the short term rental fund has outperformed monthly projections by ~24% and we've been very excited about the results.

Madison Overland Park: Madison was a unicorn apartment deal that saw over $2M in over-subscriptions in just 2 weeks of being live. This property was a true unicorn in that it had 6 unique factors that we haven't seen in other deals.

Madison Overland Park was the only apartment deal we put together in 2023 as we've taken a step back in this asset class to wait for more buying opportunities in 2024 and 2025.

2024 Projections

In 2024 we're expecting to see more distress hit the apartment building space. With almost $1T of debt coming due in the next few years for commercial real estate, a large amount of that is for apartment building deals which have seen expenses rise, rents stall, and rates increase.

We've spent 2023 preparing to capitalize on the distress that we saw coming when we noticed aggressive buying patterns and rate adjustments earlier.

We're also continuing to explore other asset classes with institutional partners as we look to strengthen our offerings against recessions. Historically, mobile home parks have been a great answer to economic downturns and still have higher cash flows than other prime asset classes. We'll be exploring more of these opportunities into 2024.

The short term rental fund will also continue purchasing properties likely into Q1 2024, possibly into Q2, with the portfolio projecting to stabilize around September or October.

Many experts were skeptical of the 'soft landing' the fed was aiming for, but as 2023 has progressed that seems like more of a possibility. Many believe rates will hold flat, or even decrease into 2024 with inflation tapering and the economy starting to slow down.

Our belief is that we'll see rates hold steady into Q2 of 2024, then start to see rate cuts towards the end of the year. This would hold true to the fact that the fed tends to overcorrect in their actions, where it's possible we'll still see the impacts of the most recent rate increases well into 2024, observe an overcorrection, then react by cutting rates.

2024 Goals

Our goal continues to hold into 2024 as it did for 2023. We aim to do 2 - 3 great deals by being patient, staying up to date with trends and data, and partnering with institutional sized operators who are well positioned to be the firsts to capitalize on distress.

If you'd like to start looking at passive investing opportunities with us, I encourage you to schedule a quick intro call with me here: https://calendly.com/justin-732/investor-call