top of page
Search

Why Apartments are the BEST investment choice

  • aschutsky
  • Dec 30, 2020
  • 2 min read



Why invest in Real Estate as part of a 'syndication' a.k.a. real estate purchased collectively as a group partnership? Also, why should I invest specifically in Multi-Family Real Estate? What are the benefits of doing so? Make no mistake, there are MANY choices when it comes to investing in real estate. There are also a wide array of investment vehicles outside of real estate as well. If you're at all like myself and my family and friends, the choices can be overwhelming! With regard to protecting and growing your financial future, one must consider many aspects, including but not limited to:

  • Ability to Augment or Replace current sources of income

  • Potential to Grow Your Investment / Projected Returns vs. Other Options

  • Risk, Market Volatility, and the Ability to Safeguard Your Investment

  • Tax Consequences

  • Ability to Hedge Against Inflation

  • Control Over Costs and Expenses

  • Trustworthiness and Credibility of those Managing your Investment

When considering the above, we've found Multi-Family Real Estate Investments to historically achieve a FANTASTIC balance of risk vs. reward when compared to other investment vehicles. We accomplish this at Redline Equity by partnering with our investors to strategically acquire, renovate, force appreciation, and ultimately re-sell properties at a profit. Let's dissect this in a few components:

  • Economies of Scale - When compared to single family housing investments, there are substantial benefits associated with cost and expense reduction when 50+ units are acquired and managed collectively as a single asset. This means lower management fees, lower operating costs, and greater economies of scale with renovations and repairs. This translates to higher returns and lower effort for managers and investors.


  • Less Risk vs. Single Family Real Estate - With economies of scale in mind, income streams are not dependent on a single occupant and can easily absorb tenant turnover.


  • High rate of return - Annualized returns of 13+% are typical, and we will not underwrite a purchase without the potential for double digit returns with conservative assumptions. A large part of these returns are driven by 'forced appreciation' where strategic renovations are made and an increase in rents are a resulting benefit. Compared to the stock market which achieves a historical 7% on average, Multi-Family real estate has outperformed.


  • Cash flow - Cash flow from Multi-Family Real Estate assets is one of the main attractions of this investment class. This can be also be referred to as an 'equity dividend' which is a normal cash distribution to all investors. Even a modest rent increase across a large number of units can make a huge difference in cash flow distributions. Many who have invested in Real Estate at scale have replaced their 9-5 jobs with passive cash flow from similar assets.


  • Tax Benefits - Depreciation provides a huge benefit by offsetting or in some cases eliminating taxes on cash flow distributions.

With these benefits in mind, it's easy to see why Multi-Family investing can be a best-in-class wealth accelerator. Redline Equity can help you plan for your financial future. Contact us now for a free 15 minute consultation.



 
 
 

Comments


Post: Blog2_Post
  • Facebook
  • LinkedIn

This website is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. The information, opinions and views contained herein have not been tailored to the investment objectives of any one individual, and are not a solicitation for any particular investment.All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice or solicitation. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial objectives, needs and risk tolerance. Redline Equity expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.The information contained herein is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service. 

©2020 by Redline Equity, LLC.

bottom of page