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WHY MULTIFAMILY

WHY INVEST?

In Multifamily

Multifamily investments generate ongoing passive income with a focus on appreciation over time through added value. Real estate is a physical asset that can always be monetized by renting, selling, or refinancing the property, irrespective of financial market conditions. This makes real estate a far more stable investment compared to stocks and bonds that are highly susceptible to the day to day fluxes in the market. Furthermore, within the real estate investment space, multifamily assets have proven to be the safest asset class.

A basic human need

Apartments address the basic human need for "a roof over our head". Whether the economy is going up or down, people need a place to live. During the last housing crisis, multifamily investments had a default rate of .02% compared to single family homes at 6%.

Not to mention that demand for apartments is at an all-time high, population is continuing to increase which drives the demand for apartment living higher and higher. Low vacancy rates equals greater cashflow as well as equity growth, which translates to higher returns for our investors.

BENEFITS OF INVESTING IN MULTIFAMILY ASSETS

Cash Flow

After all expenses are paid, quarterly distributions go out to investors.

Tax Benefits

Depreciation is a tax write-off that enables you to keep more of your profits.

Appreciation

Forced appreciation through strategic value plays increase the overall value of the property.

Stability

Multifamily is less volatile and continues to outperform traditional stock based investments.

Leverage

You can leverage real estate, this allows you to buy a $10M property with only $2.5M.

Amortization

Residents pay down debt which creates equity, this leads to long-term wealth.

HEDGE AGAINST RECESSION

JP Morgan looked at the worst five-year periods for various investments from 1977-2012 and calculated total return (including cash flow). $100 invested in apartments at the beginning of the worst five-year period for real estate was worth $110 at the end. A portfolio of 60% stocks/40% bonds was worth $94 at the end of its worst five years.

SUPERIOR RISK-ADJUSTED RETURNS

For decades, multifamily has exhibited the least volatility and highest risk-adjusted returns of all real estate asset classes. This long-term performance along with tax and hedging benefits has been amplified in the short term.

Demand for apartments is at an all-time high and still climbing

Apartments have historically outperformed stocks & bonds

Multifamily investments have historically out performed other real estate classes

BENEFITS OF INVESTING IN MULTIFAMILY ASSETS

TAX ADVANTAGED INCOME

Investors utilizing leverage depreciation, cost-segregation and Section 1031 exchanges can defer taxation on much of their real estate income into perpetuity.

HEDGE AGAINST INFLATION

Multifamily property values have proven to be virtually a perfect inflation hedge - .98 correlation since 1978 when reliable data became available.

HEDGE AGAINST RECESSION

JP Morgan looked at the worst five-year periods for various investments from 1977-2012 and calculated total return (including cash flow). $100 invested in apartments at the beginning of the worst five-year period for real estate was worth $110 at the end. A portfolio of 60% stocks/40% bonds was worth $94 at the end of its worst five years.

SUPERIOR RISK-ADJUSTED RETURNS

For decades, multifamily has exhibited the least volatility and highest risk-adjusted returns of all real estate asset classes. This long-term performance along with tax and hedging benefits has been amplified in the short term.