Time freedom is an essential component of living a happy, purposeful life. More specifically, it is an important way to constructing your perfect lifestyle. Do you want to diversify or increase your real estate portfolio as a single-family investor? Are you weary of dealing with the trouble of managing each individual residence and transferring monies between properties?
Most people equate real estate with purchasing a single-family house, but this does not have to be the case. You can totally increase your profits, reduce management costs and risks, and diversify your portfolio by investing in multifamily real estate.
The benefits of owning multifamily rental property are huge:
- You don’t have to worry about fixing several roofs or going all over town to check on your properties when you own multiple units in one location.
- There is potential to acquire ownership of numerous apartments in a single transaction! You just have one loan, one energy bill, and one tax bill to worry about.
- In commercial multifamily, the owner has more power to regulate the property’s value than in the single family world.
If we want to raise the value of our home, we should examine the following three ideas:
1. Cut expenses by using energy-efficient components.
2. Increase your revenue potential by working with a property management firm.
3. Take efficiency, best practices, or technology from other businesses or industries and apply them to real estate that you currently own.
Millions of individuals hold rental real estate to generate passive income and long-term wealth. We feel that multifamily real estate is the ideal area for new passive investors to start when developing their empire from the ground up since it offers so many benefits.
Consider how it would feel to not have to worry about your rental properties: There will be no wrangling with renters, no hassles if someone fails to pay the rent, no repairing damage, and no thinking about what needs to be done. Someone else does all of that while you sit back and relax!
While there are various benefits to multifamily investing, there are also drawbacks, as with anything else in life. Let’s have a look at a few:
- Limited exits – Do you have various options for selling the property once you’ve ready to sell? This is a risk limiting the investment’s earning potential.
- Market diversification is limited- They say, “don’t put all your eggs in one basket,” which makes sense because business can be unpredictable. One apartment building is less diversified than a large portfolio of single family homes spread across the city, or across the US. However, through syndication you can buy multiple apartment buildings and still get the desired level of diversification.
- Typically, the minimum investment amount is $50,000.
- Self-management is difficult – As your portfolio increases, it will become increasingly difficult to handle each property on your own. You will ultimately need to recruit managers or at the very least an assistant to support you, which means less money in your pocket and more time spent managing people.
- Lack of liquidity- It might be difficult to sell a building fast if necessary. While this isn’t always a negative thing because most investors seek long-term passive income, bear in mind that real estate is less liquid than equities and bonds. You could get a good price, but your money will generally be locked up for some time.
We understand how time-consuming and frustrating it can be to figure out all of the stages involved in investing in multifamily real estate, which is why we have simplified the process for you.
“Real estate syndications” may appear frightening at first, but they are an amazingly straightforward (and profitable) method to invest. Essentially it makes it possible to acquire properties in collaboration with other investors by pooling your finances. Not only do you get additional purchasing power, but you also receive the experience of a real estate professional who can assist you throughout the process.
We have made it simple for investors to earn solid returns from commercial and residential properties in the form of syndicated real estate funds that give access to real estate investments without being a landlord.
Investors LOVE getting “mailbox money” from us each quarter. These days the deposits come right into the bank and they don’t even have to open any envelopes.
To YOUR legacy!
Alex and Aziz
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