I wish I had known this (... why insider trading in multifamily is a good thing *shushhhh*)
Sarah Miskelly
Real Estate Fund Manager I Elite Sales & Business Development Leader | Champion of Hands-Off Investing & Lifestyle Freedom I Costa Rica ??
K, which do YOU think is better: owning a rental property, investing in a REIT or running an airbnb biz?
I'm here to throw a wrench into those ideas and say NONE of the above.
Why?
As someone who's been in the real estate world for a long damn time (I grew up mowing lawns and scrubbing floors at my dad's rentals)...
... then selling, buying, investing for years I've experienced the reality of managing real estate before I even had other things competing for my time - like a career, dogs *I know you're out there* or kids...
When you start investing passively in real estate things get WAY easier.
Think, predictable returns without physical work, expense or time commitment.
I'm going to simplify things for you and share the top five reasons why you'll LOVE investing passively in multifamily real estate (P.S. if you want to listen instead, check out THIS podcast with tons more detail on the topic...)
First off, one of the biggest advantages of investing in large multifamily properties is that (with the right property) you can you can force appreciation by strategically increasing its value through upgrades, lowering operating expenses, and increasing rental income (it's kinda like apartment flipping) Why? Because the value is based on NOI (Net Operating Income) not based on what your neighbour's house sold for...
Now, let's talk insider trading *woooo buzz word*. Because you're investing in an alternative asset class, it's essential to be close to the person you're investing with.
Meaning, you are required by the SEC to have an intimate relationship with them — that's why I make myself available to potential investors to connect personally on a call (here's the link to schedule a brief chat)
Now something less glam — the tax benefits.
Investing in apartment syndications offers accelerated depreciation, which means you can depreciate the value of the assets (like carpets or roofs) more quickly than their actual useful life for tax purposes.
What does this mean for you?
You get the benefit of the depreciation as paper losses that you can write off on the passive income you're earning, increasing your cash flow and return on investment. Pretty sweet, right?
Next we have economies of scale.
What does that mean? Well, the more units you have, the lower the operating costs per unit. The lower the operating costs, the HIGHER the NET income, which leads to a higher value of the property (mentioned in #1).
Last but not least, multifamily investments offer cash flow AND wealth building.
You get quarterly distributions of cash PLUS a share of the profits on the sale.
Meaning, you don't have to deal with the age-old question " — am I looking for cash flow or a big future payout in this deal?"
No brainer.
So, there you have it - the top five reasons why you'll love investing in multifamily syndications.
- The value is based on NOI (Net Operating Income) at the property; the better it's managed, the higher your returns (HERE'S a video explaining the different multifamily return metrics)
- Insider trading is good, MEANING you need to have a personal relationship with the people you invest with ( ... and all the secrets about the deal)
- Accelerated depreciation: you take paper losses from the asset and write them off on the passive income you're making —increasing your ROI
- Economies of scale: more units + lower operating costs = higher property value + investor return
- Multifamily syndications offer quarterly distributions AND a share of profits on sale.
If you are looking to place capital in the next 90 days we'll need to schedule a 1:1 call here's the link to book (remember the insider trading thing — it's just how I'm regulated by the SEC).
P.S. We have a deal coming up in Jacksonville, Florida. Reply to this email for more info...
P.P.S. Are Podcasts Your Thing? Follow the Endless Wealth Podcast on Spotify and Apple.
Let's grow our wealth together,
Sarah
#multifamilyinvesting #multifamily #apartmentinvesting #investinginrealestate #investmentstrategy #wealthmanagementservices #womeninrealestate #syndicatedInvestments