TOP 10 REASONS TO INVEST IN MULTIFAMILY REAL ESTATE (4-minute read)
Believe it or not, building wealth is not the first thing on people’s minds when it comes to money. In fact, most people spend their time trying to “get wealthy” (i.e. getting a bigger paycheck every week) versus “building wealth”.
It’s no wonder so many people have such a hard time when their income is suddenly gone.
This happens to so many people.
You work hard putting in your 8 hours a day, 40 hours a week – for some of you, you put even more because you have more than one job. Then one day out of nowhere you’re fired. Let go. Cut.
All at once you’re filing for unemployment and trying desperately to keep food on the table.
It even happens towards the end.
You see people put in 20, 30, 40 years of dedicated, hard work. They retire expecting to not worry about money only to find out that their retirement can barely cover the cost of living.
With the up’s and down’s of the economy and the crazy inflation, retiring “normally” doesn’t cut it anymore.
This is one of the biggest reasons investing in Multifamily Real Estate works. It’s a great way to make money passively for your future. Here are 10 reasons why:
- You can earn a steady income from renting out apartments/units every month.
Investors like you who own multifamily apartment buildings get regular payments from renters every month. The steady cash flow (from things like maintenance costs and operational fees) make this a no-brainer.
- You can spread out your risk by investing in multiple properties, so you won’t lose all your money if one property doesn’t do well.
There is a greater chance of success when you have multiple sources of income. In this case, investing in multiple properties contributes to that success.
- Multifamily buildings are usually high in demand, so there’s less chance of apartments being empty for a long time.
Everyone needs a place to live, and most people are willing to pay for it. In fact, Multifamily properties are in more demand than single-family houses.
- It’s cheaper to run a large property with many apartments than to run many small properties, so investors can save money.
Dealing with 1 person who has 50 properties is MUCH easier than dealing with 50 people with 50 or more different properties. It just makes sense to invest in a larger property that has multiple families. A larger property also has a better chance in negotiations.
- The value of the property can increase over time, so you could make more money when you sell it.
Unlike a new car that loses its value once you drive it off the lot, a ‘used’ property can gain value over time. LIke I said, people need places to live. That will never change. Buildings are used for months and years at a time. They are constantly reused, refurbished and repurposed as the times change. That means the potential for increased value is high.
- Investing with borrowed money can increase your profits (but make sure you talk to your financial professional first).
This might be the most difficult concept to grasp: Borrowing money is good. Contrary to what we were taught, there is value in borrowing money to invest in real estate. Always talk to your finance professional to see what your best options are.
- You can save money on taxes by taking advantage of depreciation and other tax breaks.
There are SO MANY tax breaks and advantages to investing. Some include: depreciation, deductible expenses, 1031 Exchanges, Opportunity Zones, and cost segregation. Visit our Glossary to learn more.
- Multifamily buildings can protect your investment from inflation because rental rates often rise along with inflation.
As inflation rises so does the cost of living. This is a harsh reality, but it is also the reason why Multifamily investing can keep up with the times and beat inflation. Long-term investors receive a steady stream of passive income.
- Professional property management can take care of all the details, so you don’t have to spend your time managing the apartments.
A reliable property management team will keep you up-to-date on your property’s status. They will also adapt and have things in pace to deal with and solve issues as they develop. Experienced, trusted and honest people are always your best option.
- Investing in multifamily buildings can help you reach financial independence and freedom!
Multifamily investing is safer than investing in single-family homes. Rental properties provide relief for people on both sides of the fence – the renter and the investor. In the long run, this is a great way to reach your financial goals.
There is a very simple equation this all boils down to:
Passive Investments = Time Freedom
With passive investing, you can generate income while letting someone else manage everything. You do not have to deal with tenant issues, site maintenance or anything else that might take up your time.
If you want to learn more, contact us at
in**@ea***************.com
More articles: https://eaglesummitequity.com/blog