Krieger Containers maintains one simple contention: Affordable housing is in need and any new project with a healthy projected profit that can service this need will be successful.
95% of all new multi-family units in the United States are Class-A properties. This poses a substantial dilemma for millennials and the majority of Americans. Incomes for the working class and the young are not rising at the same rate as the cost of housing. As such, there is a dire demand for housing that the market is refusing to fill. There are a number of reasons for this, but the largest single reason is the increasing costs of construction. Simply put, developers cannot afford to build anything but Class-A.
Industry Experience and Success
The initial hesitation of investors and banks has historically been market acceptance. Do people really want to live in a metal box? What will they rent or sell for? These questions create a perceived risk. We are happy to now be able to confidently provide an answer: They are equal to standard construction. Krieger Containers has successfully built 5 duplexes that are 100% leased at market rents. We are continuing development of numerous models of investment projects including student housing, new rental floor plans, and various Air BnB short-term rental properties.
Our investment focus is on lower-income and lower-priced housing. This market demographic is highly price sensitive. It’s the lowest risk and largest growing market for residential construction in the US. We are finding ways to better provide for these market demands.
Take the Leap with Us
Getting involved is easy. Whether you want to invest for a quick cash return or grab an equity stake long-term, we are willing to create an investment that meets investors’ specific goals. With financing we strive for 12-month payback periods for all initial capital. We handle the entire project from initial design to long-term leasing and property management. Specific returns depend on project type, but every project has yielded double digit returns with multiple projects nearing 30% cash on cash after the initial refinancing.
We Don’t Find Deals. We Create Them.
While many real estate investment firms are always hunting for deals, we aren’t limited by the supply of deals with built-in gains. We don’t look for distressed properties. We aren’t chasing down property owners looking for off-market deals. We will never participate in market speculation. We aren’t making our returns based on government incentives that might be eliminated. We create value by taking a raw piece of land and turning it into something that people want and need.