The real estate rental market is our primary focus. We acquire properties prices below market value, improve the properties and stabilize the properties for future resale or convert them to either long-term or vacation rental properties. Property purchases are primarily focused on the CA and greater southwest.
The growing vacation rental market is one of Alliance Funding Solutions primary emphases, including rental of luxury homes, hotel rooms and short term condo rentals. “According to the Vacation Rental Management Association, “Millennials are predicted to spend $1.4 trillion on travel each year by 2020,” (http://www.vrma.org/page/industry-research-data.) an exceptionally large part of which is the lodging associated with out of town touring.
As the vacation rental industry continues to mature, we believe the trend favoring renting vacation homes will continue to accelerate throughout the remainder of 2019-2020. In addition, as private equity and venture funding make larger investments in this market niche, there will be a greater focus on operational excellence for the guests. We believe the present emphasis on creating an optimal guest experience will continue to impact and fuel the market.
In a good real estate economy, rental rates are competitive to mortgage rates, providing affordable alternatives for those not desiring to commit to a 30-year debt. Additionally, rental properties give families and individuals the freedom of short-term obligation on a property in the area where they want to possibly locate permanently.
In a down real estate economy, rental rates are at a premium, as the demand for rental units increases, still providing affordable housing for those seeking as well as phenomenal returns for the lenders.
In either economy, the real estate provides a reliable, durable asset with a proven track record of appreciation.
Our business model approach captures multiple real-estate generated revenue streams.