WHY INVEST IN MULTIFAMILY APARTMENT?
- High Cash on Cash Returns
- Equity Through Financing Leverage
- Forced Appreciation Through Effective Property Management and Asset Management
- Hedge Against Inflation
- Tax Advantage Through Depreciation Strategies
- Growing Demand for Multifamily Niche
- Economy of Scale
- Wealth Creation and Control
- Improve Local Community in a Big way
Better Returns Than the Stock Market
The average stock market return over the last 15 years was just over 7%. But did you know that after fees, taxes and inflation, the actual return was just 2.5%?
On the other hand, real estate syndications routinely yield average annual returns of 13% or more and that’s after fees, is taxed at a much lower rate (if at all), and makes a great hedge against inflation. For more information, read this special report.
Better Performance During the Last Recession
We love the low risk profile of multifamily! Over the past few decades, multifamily properties have been less volatile than the stock market and residential real estate. For example, during the Great Recession, Freddie Mac single family loan delinquencies peaked at 4% while delinquency for multifamily loans hovered around 0.4%. Multifamily delinquency rate…at its peak…was 90% lower than the residential rate in the Great Recession.
There is no other investment class on the planet with such a low risk profile and above-average returns.
Unique Tax Advantages
Real estate offers tax advantages over nearly every other investment including stocks, bonds, businesses, precious metals, and even oil.
Our investors are able to benefit from legal tax avoidance and deferment methods encouraged by the U.S. tax code, including depreciation, 1031 Exchanges and tax-free cash-out refinances.
You can learn more about the tax advantages of real estate from our good friends at the Bigger Pockets.