Why Multifamily

WHY MULTIFAMILY

The country needs at least 4.6 million new apartments by 2030

But getting there won’t be easy. It is time to take action across the country, in ways that are tailored to the needs of each community. The apartment industry stands ready to work with urban, suburban and rural communities in every region to meet the housing demand of Americans across all income levels. Policymakers at all levels of government must recognize that addressing local housing needs requires a partnership between government and the private sector. The federal government can ensure sufficient funding of housing programs, enact a pro-housing tax policy, and reform regulations that unnecessarily increase housing costs.

WHY INVEST IN MULTIFAMILY

TOP REASONS WHY MULTIFAMILY INVESTMENT SHOULD BE PART OF YOUR PORTFOLIO

Cash Flow

Multifamily properties generate enough income to cover the cost of operations (e.g. mgm’t, utilities and maintenance), capital improvements (e.g. replacing equipment)’and financing(mortgage). the rest goes into the investors’ packets.

Forced Appreciation

Multifamily values are based on the net income they produce. Doubling the profit the property nets each year doubles the value of the property. the is the best vehicle in multifamily to achieve significant growth in your investment.

Professional Management

An asset management and property management teams oversees the property, using sales, cost and profit metrics, making Multifamily a truly ‘passive’ income investment, with professinonals handling operations. A veat majority of single family investments require more work and focus from the invsrtor.

Inflation Protection

One of the best mechanisms to avoid the impacts of inflation is to own real assets. the value of these assets will increase with inflation, thud being protected by the impacts of inflation. Real cash, on the other hand, will decrease in value from inflation, as each dollar will be able to purchase less in the future that it can today. At a time when the Fed is printing billions of dollars out of thin  air, owning multifamily properties is a great inflation hedge.

Tax Benefits

Multifamily properties are able to take advantage of Deprecialtion on the building and equipment to helpoffset income. the essentially offsets same or all your income taxes from the property cash flow.

Economies of Scale

Multifamily complexes have huge economies of scale on their side. Vacancy impact cash flow less due large number of units. Marketing and logistics are more efficient. Repair and maintenance is more cost effective Dedicated employees are easier to manage then contractors. Upgrades can be carried out with less impact revenue.

DEMAND & SUPPLY

Demand Is Rising

Park Thirty99, 174 unit property sits in an area that has become highly desirable because of its proximity to jobs, shopping, and dining. What used to be a C-area has become solid A/B. The complex is located on the south end of Lexington. This area south of downtown is the most desirable area to live and continues to be the strongest for retail and jobs.

DOWNSIDES & RISKS

Top downsides and risks of Multifamily Investing

  • 1
    It,s Illiquid

    The investments in Multifamily are illiquid because once you are in the deal your money is invested for five to seven years and the investor gets most of the money back at the time of sale.

  • 2
    Lack of control

    As an investor you are a limited partner in the entity that owns the Multifamily assets does not have much control over the management and day to day process because the General Partners control the deal and LP has limited powers in the entity.

  • 3
    Hard to Use 1031 tax benefits

    Since the Multifamily asset is owned by the entity that has several limited and general partners as members so the it is hard to use the proceeds after the sale of the asset as 1031 exchange tax benefits.