why Multifamily
key benefits of multifamily investing
Multifamily housing as an investment generates ongoing passive income with a promise of application over time and has a long track record. Being the best in the industry. Whether the economy is going up or down people need a place to live. Multifamily real estate addresses this basic human need: “a roof over our head.” Fractional real estate asset ownership provides lower risks and higher returns than most other traditional asset classes.
Leverage
Multifamily allows the passive investor the opportunity of leveraging the sponsor’s skill, experience and network to participate in quality investments that normally would not be available to an individual investor. Leverage from bank and agency lenders further amplifies the returns.
Low Risk And Safe
Multifamily is definitely considered a relatively “safe investment” compared to other real estate asset classes. Reason being, people still need a place to live regardless of the economic environment. While demand for office or retail may fluctuate throughout cycles, multifamily typically remains less volatile.
Predictable Cash Flow
Cash flow from multifamily apartments is more predictable, unlike other forms of real estate
Scalability As An LP
Being a passive investor allows one to scale as quickly as funds are available to invest. The typical barriers like personal debt-to-income ratios in qualifying for an investment loan are not present in this space. Moreover, LP is not constrained by the time required to operate deals and can participate in as many deals as desired.
Superior Tax Benefits
Multifamily is an amazing tax shelter for multiple reasons. Some of these include accelerated depreciation, tax-free refinances, 1031 exchanges and wealth transfer to heirs.
