December Newsletter

Can you believe it’s almost 2023? Are you like the rest of us and goal planning and thinking about the upcoming year and how you are going to prepare?

Well, I want to share with you a story my friend and I recently had when we were talking about planning for the years to come. She asked me, do you think I should take the $100,000 I have saved and pay off my condo or invest in multifamily? Now, that was a shocker!?My answer was…

Whether or not paying off your mortgage is a good decision depends on a few financial factors: the loan’s interest rate, how close you are to retirement, and whether investing that sum of money would give you better returns.

The decision over whether to invest or pay off your mortgage is a personal one. But the decision can have large consequences on your financial future.

Let’s say you received an inheritance of $100,000. You have two options:

1. You could pay off your $100,000 remaining mortgage balance 10 years early.

2. You could invest in a real estate passive investment.

If you paid off your mortgage early, you would have saved 10 years’ worth of interest. If your interest rate was 4.5% that would save you about $28,000 in interest payments. So, you would have an extra $28,000 that you earned over the next 10 years.

If you decided to invest your $100,000 into a mutlifamily investment, you could earn approximately $90,000 over 5 years and could then invest again. Let’s break down these numbers a little more.

If we calculate conservatively in these investments, you would get an 8% return annually on your $100,000 until the property sells in 5 years. Each year you would be earning $8,000. At the time of the sale you would get about 1.5x the amount you invested, $150,000. The grand total of the passive investment would be $8,000x5 years + $150,000 - $100,000 (your initial investment) = $90,000. That’s extra income you made in just 5 years!

Puts things in perspective, huh?

CHECK OUT LAST'S MONTH WEBINAR ON HOW TO INVEST IN REAL ESTATE USING YOUR RETIREMENT ACCOUNT!

Are your retirement accounts suffering from the market downturn? Do you wish to have more control on your future instead of riding the market waves? Then check out our webinar with guest speaker Matthew Duffy from Directed IRA | Directed Trust Company.?Matthew explains how to invest in real estate using your retirement account. Click the video to check it out!

WHAT ELSE HAVE WE BEEN UP TO?

Due Diligence on an Alabama Opportunity

Last month we went under contract on a property in Alabama and had to walk away from the deal after conducting due diligence. Our Co-Founder & Partner, Noel, walked every unit with our property management company and contractors, and check out why we had to terminate the contract.

Part 2 of the Waterways Portfolio Closed

Congratulations to all our partners and investor on the closing of Maple Valley!

This 64-unit is Part 2 of the Waterways Diversified Portfolio and located in the growing market of Louisville! This solid asset is recession resistant and will provide stable and predictable returns for years to come.

Rehabbing Cali Crossing

WHAT'S NEXT FOR US?

Join Crown Capital as we provide a macro- and micro- market outlook for 2023. Special guests include two multifamily brokers from two different states and two different companies.??Both will be sharing what they are seeing and their outlook on the 2023 multifamily market.

Register?here.

THANK YOU...

We are grateful to have you on our investing journey, and we are here for your success.?Please reply to this email or schedule a call?here?if you ever have any questions or if we can be of assistance to you.??