Having the freedom of time to enjoy the things you like is an important part of living a happy, meaningful life. More clearly, it is the ultimate form of creating your ideal lifestyle. Are you a single-family investor looking to expand or diversify your real estate portfolio? Are you tired of the hassle of managing each individual house and having to deal with transferring funds between properties?
Most of the time people associate real estate with buying a single-family home – but it doesn’t have to be that way. By investing in multifamily real estate, you can enjoy even better returns, save on management fees and risks, and diversify your portfolio.
Owning Multifamily Rental Property Has Its Advantages. Let’s Discuss Why:
- When you’re working with multifamily real estate, one attractive aspect that really stands out is the ability to obtain ownership of multiple units in a single transaction! One loan, one utility bill, and one tax bill is all you have to worry about.
- When you own multiple units at once, you don’t have to worry about repairing multiple roofs or driving all over town to check on your properties.
- As an investor, one of the most significant advantages to owning multifamily rental property is your ability to control the property’s value.
If we as investors want to increase the value of our property, we would certainly consider these three value-increasing ideas:
- Reduce costs by installing energy-efficient components
- Improve income potential with a property management company
- Capture efficiencies from other operations and bring them to the real estate you already own
Millions of people own rental real estate to provide passive income and long-term wealth, but there are only a handful who really understand how it works. Multifamily real estate is where the most significant profits can be had, and we believe it is the best place for new passive investors to start when building their empire from scratch.
Think how it would feel to not have to take care of your rental properties: No haggling with tenants, no problems if someone walks off without paying the rent, no fixing damage, no worrying about what needs to be done. All that is done for you by professional asset managers while you sit back and relax!
While there are numerous pros to multifamily investment, on the flip side, just like with anything in life, there are also cons. Let’s check out a few:
- Limited exits – When you are done holding the property and are ready to sell, do you have multiple ways to do so? If not, you could limit the profit potential of the investment.
- Lack of diversity of the markets – To reduce risk, diversify. For those who don’t know – it’s basically saying, “don’t put all your eggs in one basket” and this really makes sense because life can happen!
- The minimum funds needed to invest is typically $50,000.
- Difficult to manage yourself – As your portfolio grows, it will become difficult to manage every property yourself. You will eventually have to hire managers or at least an assistant to help you – which means less money in your pocket and more of your time taken up managing staff.
- Lack of liquidity – Once you buy a property, it can be hard to sell quickly if needed. While this isn’t necessarily a bad thing, because most investors want long term passive income, keep in mind that real estate is not as liquid as stocks and bonds. You could have a great deal, but your money will be tied up for a long time.
We know how time-consuming and stressful it can be to try to figure out all the steps when investing in multifamily real estate, and this is why we have made it much easier for you.
Real estate syndications might sound intimidating at first – but in reality, it’s an incredibly simple (and lucrative) way to invest. By partnering with other investors, you can pool your funds together to buy properties. Not only do you get more buying power, but you also gain the expertise of a real estate pro who can help guide you through the process.
We at RobertBuffum Investments have made it simple for investors to earn solid returns from commercial and residential properties in major cities across the US, in the form of syndicated real estate funds that give access to real estate investments without being a landlord. The main reason many individuals invest in multifamily is due to the phenomenal passive income produced.