When we initially launched Goodegg Investments in 2018, we saw tremendous opportunity in value-add commercial real estate, and especially in multifamily. In particular, we loved that multifamily and other commercial assets were especially recession resilient, providing an excellent vehicle for wealth creation, shielded from the ups and downs of the stock market.
Over the past year, as the pandemic has continued and uncertainty has become the new norm, we have seen this recession resilience hold strong, as assets in our portfolio have continued to cash flow and have seen steady growth, despite huge swings in the market.
Over the latter half of 2021, we had significant opportunities in both class A and B+ assets, through both new construction and rapid lease-up, as well as light value-add opportunities – both of which maximize your ability to build wealth while hedging against rising inflation, through the combination of ongoing cash flow returns
together with a lower level of risk than heavier value-add assets and repositions.
Additionally, in an effort to help investors diversify their portfolio we introduced the Goodegg Diversification Funds. These funds were designed to offset the downside risks in traditional multifamily investments and help to diversify investors holdings into a variety of other recession resilient asset classes.
Over the coming year, we are excited to further expand our diversification opportunities that we have personally been investing in ourselves over the last 12 months.
As we continue to see strong growth and performance in our core markets we will have a strong focus here this year, specifically in North Carolina, South Carolina, Texas, and Florida.
Burgeoning submarkets like Leland, NC (within the Wilmington MSA) – the location of our latest Waterleaf at Leland acquisition – are showing
tremendous growth, and these are the hidden gems we continue to seek out and invest in.
As always, we continue to keep a strong focus on the data and trends, focusing on areas that are showing extraordinary job growth, population growth, and job diversity.
As Omicron and other variants bring new surges and waves of uncertainty, we anticipate that the performance of multifamily, as well as other recession resilient asset classes, will remain strong, particularly as interest rates are still low and as people become increasingly settled with work from home or hybrid work solutions, allowing them to choose where and how they want to live.
On top of that, with inflation soaring above 6% in recent months, the value of the dollar is seeing significant instability, and with inflation likely to continue, it is more important now than ever to hedge against the falling value of the US dollar through investing in assets like commercial real estate, which will help you create ongoing cash flow, take advantage of tax benefits, and grow your wealth at a pace that well outstrips inflation.
As the New York Times puts it, "This is a terrible time for savers. If you are saving money for the future, one way or another you had best be prepared to
lose some of it."
On the flip side, it’s a fantastic time for investors, and if you’re reading this, that includes you! Through investing in stable and recession resilient assets like commercial real estate, you’ll be able to hedge against inflation, protect your hard-earned money, and leverage this momentum to create life-changing wealth for your family.
We knew that this day was coming, so over the last few years, we’ve created key partnerships with teams in strong growth markets and built a solid investor base, which means that together, we are poised to take full advantage of the strong growth that we’ve already started to see in recent months and will be able to
continue bringing you even more unique and recession resilient best-in-class investment opportunities.
If you haven’t already, we invite you to join the Goodegg Investor Club so we can keep you in the loop on all our upcoming opportunities and partner together to crush your 2022 goals so you can build wealth for your family and create the meaningful and intentional life by design that you deserve.
Wishing you all the best for a sunny-side-up year ahead!
