An Ignoble Experiment: MLG Capital – Disruption Creates Opportunity

2024/03/06

MLG Capital – Disruption Creates Opportunity

Dear Investor,

Investing during times of economic uncertainty can leave you with, well, a lot of uncertainty. What many people don't realize is that investing during times of economic uncertainty can be the best time to achieve better returns.

By way of disclosure, we have an advertising relationship with this MLG Capital, meaning we get paid for making this introduction and sharing this content. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you. This opportunity is available to accredited investors only.

The opportunities MLG is seeing in the real estate market today are different than those seen in recent years. MLG's Senior Vice President Dan Price talked through the 3 reasons they believe many should consider an investment in real estate this year in a recent video. Click this link to listen to the full video, Why Invest Now?, or read a summary of Dan's points below.

Limited Competition on the Buyside:

Over the past two years, there has been a unique convergence of events that has created an unprecedented opportunity in the real estate market resulting in less competition on all commercial real estate acquisitions. Less competition means MLG can acquire assets at a discount!

Focused Strategy on High-Quality Multifamily Assets:

Limited competition also allows MLG to move-up the quality spectrum to acquire higher-quality institutional-grade multifamily assets in better locations, but at lower prices and higher cap rates than the last few years.

Attractive Opportunity in Targeted Submarkets:

The Sunbelt has and is expected to receive a larger share of new supply compared to their existing inventories, combined with outsized demand. However, several merchant developers will need sales in the next few years as their loans mature or their equity partners seek an exit. Some markets with excess supply will create great buying opportunities at an attractive basis which MLG expects to be a short-term challenge as these new deliveries lease-up and compete with other new properties.

The Midwest, as is often common, is a steadier and more stable performer that doesn't see the high and low swings of other markets and regions. MLG expects to acquire assets that exhibit continued steady positive rent growth (i.e. demand and supply more in check) while structuring those deals with positive leverage while cap rates remain higher in the near term.

MLG

To hear more about MLG Capital's current investment opportunity, MLG Private Fund VI, click here or reach out to Charlie directly at CJacques@mlgcapital.com.