Meet Your Advisor
Your advisor is a real estate investing expert with a long history of local transactions. They’ll work with you from goals to closing for every property.
At Awning you can purchase remotely, giving you access to deals across the United States.
Some markets where we are seeing the best deals and significant interest from our investors include Houston and Austin in Texas, Jacksonville in Florida, and Sacramento in California.
Your advisor will find you properties, supported by our algorithms and the human review of our analysts. Every time they uncover a gem we’ll let you know.
Your advisor can help negotiate an offer, set terms, secure inspections, shop around for financing, and close on the property. When you buy, we collect a buy-side broker commission from the seller.
If self-management isn’t for you, Awning has already vetted experienced local property managers to allow for truly passive income. These managers double-check our rent estimates before closing and handle leasing, billing, reporting, and maintenance for you.
Our mission is to make real estate investing more accessible. 90% of the world's wealth has been built through real estate, but the process has become increasingly harder and more time consuming for the individual investor. We want to help 100,000 people grow their net worth and achieve financial freedom by using one of the highest-yield and most stable methods to do so.
A physical asset.
Real estate is a physical, tangible asset that is in scarce supply. The growth in house supply has decreased to record lows over the past 10 years, with no end in sight. Having physical assets in your portfolio is a hedge against economic uncertainty, as they typically (but not always) perform above market average in an economic recession.
In periods of inflation, real estate has a tendency to hold up remarkably well opposed to fiat investments. Real estate prices rise, income generated from rents grows directly in line with CPI, and the debt used to secure the property depreciates in value. For example, a $10,000 mortgage payment during the first year of a mortgage will remain the same nominally but may well only be worth $8,000 in the tenth year, while the property may have appreciated in value 12%.
Major tax incentives.
Earning tax deductions through real estate investing is a powerful benefit that is rarely realized in other investment classes. Deductions include, but are not limited to:
- Interest on mortgage payments
- Property management fees
- Property repairs
- Property insurance
- Property taxes
- Property depreciation
To highlight a basic example, let's assume you purcahse a rental property for $200,000 with a down payment of 20% ($40,000). The annual income of the property is $20,000 with $16,000 in expenses, which produces a net income of $3,000. The depreciation deducation allows you to deduct $7,272 ($200,000 / 27.5 years), leaving you with a net loss of $4,272. Because of this loss, you earn the entirety of the net income generated from the property without paying taxes on it.
Let's say you wish to then sell your property in 10 years for $250,000. Using a 1031 exchange (provide link), you can avoid having to recapture the depreciation amount and you can roll the $50,000 worth of capital gains into a new, higher-yield investment property without paying taxes on it.
All this together means that you have the possibility of paying little to no taxes, collected $30,000 in passive income, and rolled over the appreciation into a new investment class that yields a higher return.
You can borrow money to invest.
As opposed to other investments, you can borrow money to invest in real estate. Combined with the appreciation of real estate over time, this effectively allows you to leverage and monetize from low interest rates. This is not possible with fractional or market investing.
Just like a standard brokerage, Awning makes money on the commission of the sale. The commission price - typically 2.5 to 3% of the total sale price - is a figure that is worked in to the asking price of the property.
We are glad you asked! Awning makes money on the commission of the sale, and we do not charge any additional fees on top of this. We only make money when you successfully transact on your new investment property.
Typically, we find that our investors have had optimal success with at least a 20% down payment and use financing to cover the remainder of the property. As home prices are variable depending on the type and location of the investment, you can use this number plus an additional 5% for assorted closing costs as a conservative calculation for how much you could expect to spend upon transacting on your investment home.
Of course! Remote buying is our specialty. No matter where you live, we can help you find a market that meets your investment goals and make sure that you feel as though you have spent weeks in that market (without ever booking a flight).