American real estate developers are on a conversion spree, turning vacant office buildings into residential units and remaking urban living across the nation. It’s among the growing number of ways ordinary investors can break into real estate to diversify their portfolios beyond stocks and mutual funds.
A trio of investors from Pennsylvania recently demonstrated the possibilities when they transformed an abandoned school into a modern apartment complex. Jesse Wig, Adam Colucci, and Dan Spanovich bought Bowtie High – an abandoned high school in the Pittsburgh suburb of Homestead – for just $100,000. Spanovich, a 42-year-old developer, played a pivotal role in assisting his co-investors in converting the dilapidated property into a thriving upscale apartment complex.
With an investment of $3.3 million, the team successfully transformed the former school into a 31-unit apartment complex. The project addresses neglected property and the growing demand for affordable housing in the area. It shows how real estate can be an impactful wealth-building add-on to conventional investment vehicles.
Thankfully, real estate investments – prized for their ability to generate passive and stable cash flow as a hedge against stock market volatility – have never been this accessible. Today, investors can leverage online platforms and bypass the complexities and heavy lifting associated with property development and renovation.