MB 220: Affordable Housing by the Numbers – With Damian Bergamaschi

<p>You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?</p> <p>Damian Bergamaschi is the cofounder of <a href= "https://www.damriscapital.com/" target="_blank" rel= "noopener">Damris Capital</a>, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.</p> <p>On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.</p> <h3>Key Takeaways</h3> <p>The Damris Capital origin story</p> <ul> <li>Idea to organize data, info from white papers</li> <li>Test different asset classes by numbers</li> </ul> <p>How Damian’s research led him to affordable housing</p> <ul> <li>Devaluation of dollar = consistent long-term trend</li> <li>Residential real estate most tax efficient way to invest indirectly in inflation</li> <li>Add framework of Inflation Harvesting (layer on debt)</li> </ul> <p>What we don’t understand about the unemployment rate</p> <ul> <li>Many people have income despite being unemployed (e.g.: retirement, disability, etc.)</li> <li>At 30% unemployment, 60% would still have income vs. 80% in normal circumstances</li> </ul> <p>Why affordable housing is insulated from COVID-19</p> <ul> <li>Government safety nets (stimulus checks, unemployment bene