According to Freddie Mac economists, the US is still facing a housing shortage crisis — an additional 1.5 million units would need to be added before we reach a “balanced market.” This shortage of homes has pushed the median US sale price up 5%, year on year.

But there are two states that are dealing with the opposite problem — too much supply. In Florida and Texas, properties are stagnating on the market.

Coming out of the pandemic, both states built more homes to attract out of state buyers - new developments jumped in Florida and Texas more than in any other part the US.

Now, demand is shifting away from these areas as local blue-collar workers have been priced out of homeownership and investors are starting to look elsewhere for better deals. In the last month, price growth in Florida and Texas has flattened, and listing prices for some metros are starting to come down.

Both markets are also exposed to the same pressures as the wider housing environment. High mortgage rates, still hovering around 7%, are keeping many from buying new homes.

Real estate cycles can vary depending on geography and property type; the key is to be vigilant and to understand the nuances of each market and the best strategy to implement in each given situation. The opportunities are still out there if you know where to look. Knowing real estate markets intimately and being able to correctly identify the phase each market is currently in, is the key to recognizing what is a good investment vs. what to pass on. In doing so, you can build a diversified real estate investment portfolio robust enough to weather any storm.

BENA Capital identifies, analyzes, and selects portfolio investments based on strict quantitative and qualitative criteria. This disciplined due-diligence process ensures a data-driven approach and has enabled BENA Capital to consistently produce strong returns for our investors.

For example, the Mosaic Fund (our stable income fund) made 18 consecutive quarters of distributions, paid out over $210,000 in cash flow to our investors over the term of the fund, and successfully returned all of the original capital invested with us. In addition to quarterly dividends, we were pleased to have surpassed the projected appreciation targets for the Mosaic Fund, resulting in a remarkable final distribution of profits to each of our valued investors. Through the course of the fund, we achieved a 37.44% Total ROI for our Tier I investors and a 41.02% Total ROI for our Tier II investors.

The BENA Capital Premier Fund was formed in November 2020 to acquire investment real estate properties to deliver cash flow and asset appreciation. The fund had a solid Q2 2024, delivering a 7.2% annualized return on capital deployed into real estate.

BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.