Put simply, the Midwest is an untapped market when it comes to real estate. Historically, the region has been an underserved market. This leads to a myriad of fundamentally sound real estate investment opportunities that provide steady cash flow and remarkable returns.
Loquidity is poised to catapult the Midwest market. We are a real estate crowdfunding platform that allows investors to fund projects in their own backyards. It’s neighbors investing in neighbors, meaning that investors are actually helping to build (or rebuild) the community in which they live, creating a greater sense of community. To understand this concept, think about the Green Bay Packers, the most successful NFL franchise in championships, revenue and fan base. They are the only community-owned team in the NFL.
Aside from being able to easily see the projects in which they’re investing and building, backers and sponsors benefit from the fact that Loquidity is made up of real estate professionals who have lived, worked and developed deep networks throughout the Midwest. This translates to access to deals that investors may not have been savvy to before, while sponsors can reach a greater database of local investors.
It’s not just about investing in your backyard for the fun of it. Data shows that the region’s commercial real estate market is growing in investor interest, access to capital and seller confidence. Grand Rapids, Michigan is just one example of exceptional Midwest growth. The city has reached “critical mass” and is attracting new investors and developers. These circumstances, along with a decreasing unemployment rate, make markets such as Grand Rapids attractive for investment, specifically commercial and multi-family real estate. In fact, West Michigan was the most optimistic job market in the nation for 2014. More jobs equals lower unemployment, which also equals more people looking to rent or buy real estate.
The Midwest is resilient. Though, in the past, the Midwest economy did not look promising, key industries and companies—particularly manufacturing—are rebounding from the recession. This translates into job growth and increases in capital flow in the Midwest. According to Grosvenor Group’s April 2014 study, Chicago and Pittsburgh rank higher than Boston, New York and San Francisco for long-term real estate investments.
Not only is the region resilient, it’s also progressive. To date, five of the states that Loquidity covers have passed crowdfunding legislation. This includes Michigan, Indiana, Kansas, Wisconsin and Tennessee (to be enacted in January 2015). Following their lead, four states (Pennsylvania, Missouri, Illinois, Virginia) have legislation pending.
Now is the time to invest in Midwest real estate as the economy rebounds in cities such as Detroit and Cleveland and continues to grow in places such as Grand Rapids, Chicago and Twin Cities.