10 Reasons You Should Invest in Multifamily Real Estate
There’s no one-size-fits-all strategy to assembling a successful portfolio, but conventional wisdom says your investments should include some mix of savings, stocks, bonds and real estate. But for many investors – even high net-worth individuals – real estate is often underrepresented.
Real estate investments not only provide diversity in relation to the other assets in your portfolio, but also offer paths to wealth through both regular cash flows and long-term capital appreciation. Here are some of the many reasons to consider investing in real estate:
Cash Flow. Real estate investments generate tenant rents to cover operating expenses and mortgage debt and create relatively predictable net cash flows.
Solid Returns. Private real estate has historically outperformed the stock market and other investments on both an absolute and risk-adjusted basis.
Long-Term Security. While the real estate market can fluctuate, it has proven to be less volatile than publicly traded equities and other asset classes.
Tax Benefits. You can deduct several expenses associated with owning an investment property and take advantage of depreciation. In addition, sale profits are taxed as capital gains, which are typically taxed at lower rates than income.
Diversification. Historically, private real estate has not been directly correlated with the stock market, thus offering diversity to an investment portfolio overloaded with savings, stocks and bonds – mitigating your exposure to market volatility and improving the stability of your portfolio.
Passive Income. While actively owning rental properties requires considerable effort, finding partners to handle acquisition, leasing, property management and maintenance can make real estate investment a passive pursuit.
Financial Leverage. Leverage in real estate means using other people’s money to acquire assets – taking out loans, paying them back with rental income and building your portfolio without the capital to buy the properties outright.
Inflation Protection. Real estate investments are considered an inflation hedge because, as the prices of goods and services rise, rents typically rise as well. And property values have historically grown at a higher rate than consumer prices.
Capital Appreciation. In addition to creating regular cash flows, real estate also offers investors the opportunity to realize asset appreciation and the security and long-term downside protection of a physical asset with reliable value.
Fulfillment and Control. Developing real estate can bring benefits beyond the financial. You also make a difference in your community, creating places for others to live and work – and giving you pride of ownership in something tangible.
…AND 5 MORE WHY YOU’LL ENJOY DEVELOPING PROJECTS WITH US!!
Acquiring existing rental properties is inefficient, time-consuming and boring! We offer ownership shares in ground-up developments you can proudly watch grow physically and financially.
Local, Personal, Tangible. We’re a small local firm with the experience and expertise of a large one. We enjoy designing, building, creating something new and meaningful – with investors of like mind.
Leveraged but not crowdsourced. We create opportunities for investors to leverage their capital into more impactful projects than they could otherwise develop on their own.
Fortune favors the bold. New development takes ambition and an appetite for risk, but offers higher financial returns and pride of accomplishment.
Building Small / Missing Middle. We espouse the philosophies of Building Small and Missing Middle Housing – and seek out opportunities to develop unique, human-scale, place-making projects.
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DISCLAIMER: Investing in commercial real estate entails substantial risk. Investors should not participate unless they are able to sustain the risk of loss of capital – up to and including the total loss of invested capital. Investors should discuss their individual factors with professional advisors when deciding if an investment is appropriate for them. An investment in a private placement is highly speculative and illiquid, and intended for investors who do not require access to invested capital.
