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With the advent of a global financial turmoil, it is normal to see investors on a daily basis who want to broaden their knowledge and options with investment that will secure them against the abnormality of the market.

Some people spent enormous amounts of time trying to diversify their portfolio of multifamily investments, administering the purchase, development and operation of tons of properties. Having said this, individuals often ask this question: What are the most efficient investment options especially if you are eyeing for future long-term returns? The answer is a no-brainer. It is a known fact that multifamily apartment rentals are effectively applicable to stand a looming economic downturn. 

Entirely, specialists recognize real estate as an effective investment vehicle since it is a solid asset that is perfectly tangible, visible and operates efficiently in an inflationary community. Its capability to obtain excellent cash flows makes the real estate industry an appealing choice for a lot of real estate investors. When you integrate cash flow with depreciation tax benefits as well as the value of the property increase through time, then you have a great investment vehicle. Further, the real estate industry gives passive investors a kind of asset that does not need to spend a sufficient amount of time.

But, some property classes give significant value as compared to others Multifamily properties, specifically, give an array of advantages. We come up with a list of advantages in multifamily investment:

  1. Multifamily operators are more swift and responsive simply because streams of income are based on multiple shorter-term leases. They can adapt to meet the preference of each and every lessees’ changes and demands in the industry which will result in enhanced investor returns in the future. 
  2. Following, the demand for multifamily units has been in demand for the last decade. Since the recent global recession, we have witnessed a shift in the demand in terms of home-buying. This is because of the fact that Generation x-ers, millenials and even baby boomers opted to rent instead of buying properties. Almost half of the present household in the United States are renters which is the highest in the last fifty five (55) years. Renting is the way to go and there is no resting for this demand in the coming years.
  3. Based on statistics, younger generations will initially choose to spend their hard-earned money on travels and leisure instead of purchasing and managing properties. They are more leaning towards renting in order to change jobs if they want to or easy, move to different locations. In addition to that, as loan requirements have been a bit complicated, it has become complex for younger generations and people with not-so-good credit and high debt to secure mortgages. Also, higher down payment makes purchasing even more difficult.
  4. On the other hand, when talking about baby boomers, they are selling their properties and chose to move closer to urban cores. They want a lifestyle that reaches everything a few steps away. In the multifamily communities, individuals and the younger generations find amenities that they cannot avail in single-owned properties like fitness centers, resort style pools, grilling areas, clubhouses, cabanas and a lot. Suburban apartment units also entice a lot of young renters because of an array of considerations, especially proximities and accessibility to great schools, churches, highways, and shopping places. Further, suburban communities often showcases flexibility level and cost-efficiency not found in urban communities. 
  5. As compared to retail, industrial or office assets, apartments have the advantage of a broader renter base. This simply means that investors do not have to depend on single or double tenants, but on several hundreds. So losing one tenant will not hurt so bad and will not significantly affect the cash flow of the investment. In turn, lessening the risk during financial downturn. 
  6. It is a known fact that a wise investment technique starts with looking for the proper location that possesses enormous population growth, high end demographics and high entry barriers. Furthermore, investors should have a look at micro and macro-economic trends for income as well as dependable growth in jobs.

As part of a comprehensive portfolio, investors should look for rentals that entices families and baby boomers who have let go of their properties and want a more dynamic kind of lifestyle. Look for assets that are close to good educational institutions, proximities to retail as well as leading business establishments and with high volume of traffic within their community. We have listed location targeting advice to first-time multifamily real estate investors:

  • Specify a market using Neal Bawa’s Real Focus Market underwriting spreadsheet. This can be found free on the web. Have knowledge of each and every multifamily real estate broker in the markets which meet your criteria to check who is around for the long term, versus brokers trying to make a quick buck. The deal you invest in, you can find out which broker listed it. Each investor must look at multiple deals.
  • Get in touch with  the brokers in that market, and acquire introduction to their capital markets group to understand the most practical financing options. these change often. It is fundamental to also comprehend what lenders are looking for in terms of sponsor group or a specific deal. These are good measures for what group you invest with as well.

 

Here at www.theapartmentqueen.com , our multifamily investments have had a minimum return of 8% cash-on-cash annual return and 15% internal rate of return or IRR. While we can say that nothing is solid recession-proof, multifamily real estate investments are excellently put in place and still suited to battle the stormy financial crisis. 

 

WE ARE LOOKING FOR MORE INVESTORS LIKE YOU PLEASE HIT THE forward button  ABOVE to quickly send to a friend who can benefit from our strategic, forward-thinking strategies and investments.

Our ideal investor is usually one of these individuals:

Ultimate passive investors-

WOMEN with

1031 exchange over 1 million-

High net worth individuals

Doctors

Dentists

Engineers

Individual who Worked for a major company over 10 years

Real estate brokers/agents

Female athletes

Aggie women

Women CEO/founder

Socialites/society

dutchess/heiress

Individuals with pension funds

Endowments

Women-owned family offices or family offices/funds who support the social initiative to teach financial literacy to women

Angel investors supporting women

** GET Qualified for the next DEAL or GET more INFO NOW!

TAKE THE QUALIFYING QUIZ NOW!

Kaylee McMahon

Apartment investor/ TREC® Brokerage LLC Owner

c: 469-990-4627 (text or call)

IG: theapartmentqueen_

www.theapartmentqueen.com 

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