Commercial real estate continues to be a top draw for investors. Driven by the search for income, hard asset exposure, as well as market beating gains, investors have poured countless dollars into broad real estate funds like the Vanguard REIT Index ETF (ARCA:VNQ). So far, investors in real estate trusts (REITs) have been well rewarded for their gamble. Since the end of the Great Recession, commercial real estate has been one of the best performing asset classes.
www.mydebtfreedate.com/banksolid2
However, the best performers haven’t been traditional real estate sectors like apartment buildings, office plazas and shopping centers- but alternative property types. One of the more interesting and potentially profitable for investors can be found in a seedier sector of the market- operating private prisons.
SEE: How To Assess A Real Estate Investment Trust (REIT)
Making Crime Pay
Believe it or not, crime can pay for investors and their portfolios. That is if they focus on the lucrative world of operating for-profit prisons. As states grapple with budget deficits and higher spending issues, many have turned to farming-out their corrections facility operations to private companies. Often with considerable savings and success. For example, Ohio- as a way to climb out of an $8 billion budget deficit- began the process of privatizing their prisons in 2011. Since that time, The Ohio Department of Rehabilitation and Correction has boasted roughly $3 million in savings per facility.
These budget issues are compounded when adding in the fact that we love to lock-up inmates in America. Currently, the U.S. has the highest incarceration rate of any developed nation.
According to Bureau of Justice Statistics (BJS), the United States sends roughly 754 per 100,000 people to jail. The U.S. only represents about 5% of the total global population, but its inmate population is a nearly a quarter of all those incarcerated around the world. More importantly, that inmate population is growing at a 5% annual rate. As such, state prisons currently have a 96% occupancy rate, while federal prisons are at 140% of capacity. In some areas, prisons are so overcrowded that criminals are being released early.
www.averageamericanmillionaire.com/banksolid2
To your success
Martin Crawford
www.mydebtfreedate.com/banksolid2
However, the best performers haven’t been traditional real estate sectors like apartment buildings, office plazas and shopping centers- but alternative property types. One of the more interesting and potentially profitable for investors can be found in a seedier sector of the market- operating private prisons.
SEE: How To Assess A Real Estate Investment Trust (REIT)
Making Crime Pay
Believe it or not, crime can pay for investors and their portfolios. That is if they focus on the lucrative world of operating for-profit prisons. As states grapple with budget deficits and higher spending issues, many have turned to farming-out their corrections facility operations to private companies. Often with considerable savings and success. For example, Ohio- as a way to climb out of an $8 billion budget deficit- began the process of privatizing their prisons in 2011. Since that time, The Ohio Department of Rehabilitation and Correction has boasted roughly $3 million in savings per facility.
These budget issues are compounded when adding in the fact that we love to lock-up inmates in America. Currently, the U.S. has the highest incarceration rate of any developed nation.
According to Bureau of Justice Statistics (BJS), the United States sends roughly 754 per 100,000 people to jail. The U.S. only represents about 5% of the total global population, but its inmate population is a nearly a quarter of all those incarcerated around the world. More importantly, that inmate population is growing at a 5% annual rate. As such, state prisons currently have a 96% occupancy rate, while federal prisons are at 140% of capacity. In some areas, prisons are so overcrowded that criminals are being released early.
www.averageamericanmillionaire.com/banksolid2
To your success
Martin Crawford
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