Why should investors put their money on real estate instead of in the bond market?

My partners and I are making a bet on the real estate market long term.

We believe that low interest rates are going to be here for a while.

Yes, it’s possible that interest rates bounce upwards with some inflation due to anticipated fiscal stimulus. But at most we expect they will normalize so the 10 year US Treasury is yielding more like 2% than its current yield of 0.8%.

That being said, a 2% yield over 10 years with inflation means you’re losing money if inflation is greater than 2%...which it has been historically.

Typical cash-on-cash multifamily real estate returns in Boston are 4-6% and 8-12% in Florida and Texas. This difference in yield will continue to attract more investors as they learn about the risk and reward of the investment. Annualized IRR’s can be much higher 20%+ depending on the deal risk profile.

Pugh Management has been investing in multifamily real estate for years now and we are shifting from strictly ground up to purchasing and renovating or repositioning existing assets.

Our focus is on housing in three key markets today, Massachusetts, Central Florida, and Texas. We have relationships in these markets and are looking to grow our strategic partnerships in the Tampa Area in property management, acquisitions, and investor relations.

Investors interested in favorable cash-on-cash annual returns should reach out to learn more about our strategy. The Pugh Management team is a group of experienced operators looking to create value for our investors and team members.