Letter from the Real International CEO: Celebrating 10 years!
A Reflection on 2023, and Looking Forward to Exciting Ventures in 2024
Dear valued clients, friends, and partners,
As we step into the new year, I would like to take this opportunity to express my deepest gratitude for your continuous support and trust.
Facing Challenges
Similar to the economic slowdown during the 2008 financial crisis, the economic deceleration of 2023 has significantly impacted our lives. In the current economic environment and market conditions, we understand your concerns about market uncertainties. Beyond worries about asset shrinkage and losses, there is a shared concern about whether there are current investment opportunities and the fear of missing out on prime investment windows.
The real estate industry has always been filled with challenges and uncertainties. I, too, have encountered similar challenges, but the experience accumulated over the past 20 years has enabled me to seize opportunities and guide my clients in adjusting their investment strategies successfully throughout different periods.
In early 2023, amid market turbulence, institutional investors took the lead in entering the single-family rental market. Recognizing investors’ dual demand for cash flow and long-term property appreciation, my team launched two phases of the Harvest investment portfolio project at the beginning of the year—currently running smoothly with a total investment property value exceeding $60 million. Collaborating with major construction partners, we secured several opportunities for investors to take advantage of new home discounts, leading clients to invest in over 100 new residential properties. Simultaneously, following Austin’s announcement of Project Connect, a $1.7 billion light rail plan, we capitalized on the demand for tax savings, introducing the Crystal-line opportunity zone project.
By the end of 2023, we made serving our clients the annual goal. Against the market tide, we expanded our team with the recruitment of several professionals in real estate investment and management, setting higher standards for ourselves.
Outlook for the Future
In 2024, as Real International celebrates its tenth anniversary, I can attest that have witnessed the journey of three generations of clients from their initial foray into real estate investment to achieving wealth through real estate. This year, Real International will continue to fulfill its mission, measuring its success by yours. In the future, we will also focus on providing exclusive opportunities for our loyal investment clients, ensuring a personalized investment experience for you.
Despite market speculations of a potential Federal Reserve rate cut in 2024, the opportunity for distressed assets remains. Several significant opportunities are waiting for us in the market. In 2024, many commercial loans are expected to default, presenting the distressed opportunities we’ve had so much success with in the past.
We also recognize immense investment opportunities in the Austin-San Antonio (ASA) market. These two cities are poised to merge into one combined metropolis complex, leading in population and employment growth. Hence, our 2024 investment strategy will focus on high-quality assets in the ASA region to ensure the steady and promising appreciation of your assets.
The U.S. is on its way to becoming a nation of renters. As of 2022, investors owned only around 5% of single-family homes, but by 2030, they could represent 40% of this market. Leveraging our two decades of expertise, we’ll keep growing our single-family rental (SFR) portfolio by acquiring bulk properties from national builders at significant discounts and initiating early land development to give more investors opportunities to build their wealth through real estate ownership. This is our unique “Invest-To-Own” approach.
Additionally, embracing Mark Twain’s wisdom (“Buy Land, They’re Not Making It Anymore,”) we are expanding our land acquisition footprint. Our strategy includes acquiring quality distressed land and properties, positioning us for continuous growth and success through this coming economic cycle.
Reflecting on the past decade, Real International has launched many unique investment projects, from our exclusive discounts in Hutto’s Mustang Creek to our Invest-to-Own projects, from our flagship Orchard Portfolio to the Crystal-line project. These projects have had their unique advantages, tailored to market conditions at different times. But they have always been centered on meeting the needs of our clients. Moving forward, we will continue to create a variety of innovative real estate investment products to meet your diverse needs at different stages of the market.
As the saying goes, “Opportunity always favors those who are prepared.”
Are you ready?
Sincerely,
Lynn Yuan
Founder and CEO, Real International
