Why Multifamily Real Estate?
Passive Investing.
A truly passive way for the investor to gain exposure to the growing renter population in the US without the day to day management. Let the property manager handle the tenants, termites, and toilets. With a commitment to prudent underwriting, we search that allow us to deliver consistent quarterly distributions to our partners.
Inflation Hedge.
Multifamily investing provides a hedge on inflation because of the short term nature of apartment leases. As the economy heats up, apartment rents rise boosting the net income of the property. Rising property value and a fixed amortizing mortgage provide a great opportunity to build wealth during inflationary conditions.
Tax Advantages.
The tax code in the United States provides great advantages to owners of commercial real estate. We don’t “Fight the Fed”, and we fight the tax code. Depreciation is a non-cash expense which reduces taxable net income on the property. Cost segregation, 1031 exchanges, and step-up in basis are all great reasons to consider an investment in real estate.
Stable Asset.
People need a place to live, even in recessions and pandemics. Unlike a shopping mall or an office building, in good times and bad, apartments remain at a high level of occupancy which serves to reduce volatility of returns. Vacant apartments lease more quickly than other types of vacant real estate which produces low volatility in collections.