Should You Diversify Into Multifamily?

Multifamily Real Estate Investment – Part 1

Any investor looking to seriously build their wealth and add more diversity to their portfolio should consider investing in multifamily real estate.

If your goal is to accumulate net worth, take a moment to read why multifamily real estate is a high impact investment strategy you can use. 

So why Multifamily Real Estate Investment?

Home is a Necessary Expense

People will always need a place to live. Unlike other types of real estate that can be severely impacted by changes in technology, customer preference, or relevancy, people will always need a place to call home. For you as an investor, this means there will always be demand.

Fewer People Buying Homes

Did you know that homeownership fell to a record-low of 64% in 2018? More people are getting divorced. The affordability gap continues to widen. Millennials are staying at home longer, delaying the purchase of their first home. Whether it is the growing student debt, credit card debt, or increase in cost of living expenses, many people can’t afford the down payment needed to purchase a home. Thus, more people are becoming long term renters.

Efficiency of Investing Capital

In a single transaction, you can accumulate significantly more density and income, more efficiently than would be possible in single family properties. This allows you to deploy your investment dollars more quickly and avoid the hassle of multiple transactions.

Multiple Income Streams

Multifamily gives you the opportunity to have multiple income streams that stem from the same investment property. Unlike relying on a few residents, multifamily properties can have hundreds. Simply stated: more people renting means less risk.  Combine this with revenue from premium services like reserved or covered parking, laundry or high-speed internet and the values increase beyond rent growth.

Finance Opportunities

No other type of commercial real estate have the number of loan options that are available to multifamily properties. Between Banks, Life Insurance Companies, Debt Funds, Fannie Mae and Freddie Mac many vehicles exist to finance multifamily property investments with strong leverage, reasonable rates and term flexibility.

Over the last decade, Exponential Property Group has given hundreds of investors the opportunity to grow their net worth using multifamily real estate.  Go to exponentialpropertygroup.com/invest to learn how you can too.

In Part 2 you’ll learn how property management is key to success in your multifamily investment.

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