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Why Apartments are the BEST investment choice

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.

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