In today’s market, some investors are re-evaluating private credit due to limited upside and tax treatment. Cash-flowing real assets like manufactured housing communities and self-storage facilities can offer income, tax efficiency, and long-term value creation through operational improvements. This discussion explains how real estate returns differ structurally from yield-focused strategies.

It’s not just about yield.

High single-digit cash-on-cash returns are only part of the story. Real estate offers structural tax advantages like cost segregation and bonus depreciation, which can create meaningful paper losses that help offset taxable income. For many investors, that changes the after-tax return profile in a big way.

Value creation drives appreciation.

Our strategy centers on acquiring underperforming, often mom-and-pop operated communities and applying professional management, operational efficiencies, infrastructure improvements, and smarter utility structures. These initiatives are designed to increase Net Operating Income, the key driver of property value, creating upside beyond ongoing cash flow.

Execution is the edge.

In strong asset classes like manufactured housing, true distress is rare. Success comes from relationships, off-market opportunities, and disciplined underwriting. Our acquisition pipeline reflects that approach, with significant deal flow under contract and in negotiation, allowing us to be selective and focus on high-conviction opportunities.

The result: investors participate in current income, tax efficiency, and the potential appreciation realized when assets are sold; all components that contribute to overall IRR.

Watch the full video to hear the deeper conversation around market dynamics, strategy, and what we’re seeing on the acquisition front.

Frequently Asked Questions

Why do some investors choose real estate over private credit?
Private credit can provide income, but often has limited upside and income taxed at ordinary rates. Real estate investments may combine cash flow, tax efficiency, and property appreciation driven by NOI growth.

How does real estate create tax advantages?
Strategies like cost segregation and bonus depreciation can generate paper losses that help offset taxable income, improving after-tax returns for investors.

What drives value in manufactured housing and self-storage investments?
Operational improvements, professional management, utility optimization, and rent adjustments can increase Net Operating Income, which directly impacts property value.

Insights shared by the Crystal View Capital team, focused on investing in manufactured housing and self-storage real estate.