5️⃣ Reasons Why Investors Love Multifamily (Apartment Investing)

We know you're probably feeling some stress over the big stock market swings these days - you may even be in the challenging situation of losing quite a bit in your investment accounts.

Everywhere you turn, you're getting hit with conflicting news headlines about the true state of the economy - are we in a recession or not? Is the stock market going to crash or not? 🤯

This tornado of uncertainty may even keep you up at night - and based on our daily conversations with business owners, you're not alone.

It's no secret that inflation is at decade-highs and stealing your hard-earned money - so you've probably realized sitting in cash isn't an option.

The question at the top of most investors' minds nowadays is, "Where do I invest in an uncertain economy?"

This exact question is what sparked our search years ago for recession-resistant investments - and hundreds of hours of research led us to Apartments.

We're confident investing in apartments (i.e., multifamily) can provide your family with the long-term stability that creates financial peace of mind - here's why...

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5 Reasons Business Owners Love Investing in Multifamily:

1️⃣ SHOW ME THE MONEY – I.E., CASH FLOW

Let's talk about what we mean when we say cash flow 💰– cash flow is the monthly amount of money the apartment complex generates.

How do we generate additional cash flow? We create more cash flow for a property by forcing appreciation (i.e., minor renovations, covered parking, pet fees, storage, etc.), resulting in increased rents and profits.

Passive investors get to share in those profits (without having to do any of the work or deal with the headaches of managing a property – we do that for you!)

2️⃣ RECESSION-RESISTANT = LESS RISK –

If you're like most business owners we talk to, you're also getting tired of this wild stock market rollercoaster. (Did you know the stock market was down ~18% at the end of 2022? 🫣). As business owners, we worry enough about the day-to-day operations of keeping the ship afloat – we shouldn't have to worry about our investments, too.

Apartments have a long history of being recession-resistant assets that thrive in good times and bad. They are considered relatively "safe" compared to other real estate investments. Even during economic downturns, apartments are recession-resistant because people always need somewhere to live. If they lose their home or decide to downsize due to economic stresses, they're typically moving into apartments. In short, no matter the cost increases or impending economic storms we may face, the need for housing will always be there.

3️⃣ TAX ADVANTAGES –

As business owners, this is one of our favorite advantages to investing in apartments 🙌. As an investor, you can take advantage of a slew of tax benefits of property ownership, including accelerated depreciation through cost segregation, which can help lower the taxable passive income you receive (ultimately putting more money in your pocket).

*Cost segregation identifies costs that would typically be depreciated over 27.5 years and reclassifies them to permit a shorter, accelerated depreciation method. This segregation model leads to substantial tax savings for the investor – you will never see these tax savings in the stock market.

4️⃣ PASSIVE INCOME –

We love this part, and we know you will too. One of the most incredible advantages of investing in apartments is that it can produce income for you with little work on your part. It's called "passive" income because, for you, it's hands-off. CAN WE GET AN AMEN? 🎉

How does it work? This is the cash flow we were talking about – the apartment complex collects rent, and after expenses, the net profit gets distributed to investors (could be quarterly or annually, depending on the project). While passive income is great, it's not how true wealth is built in real estate – which is why we search for properties that can produce cash flow AND double investors' money over 5-6 years.

5️⃣ MORE CONTROL OVER THE INVESTMENT’S VALUE -

Unlike stocks, investing in apartments means you're in a "hard asset" – you can go and visit the property and touch the building. Hard assets have an intrinsic value compared to the emotional rollercoaster of the stock market that can plummet simply from investors getting fearful and selling their stocks.

We wanted more control over our money which is why we like the ability to force appreciation on an apartment complex.

Again with the vocabulary lesson 🤓… what is "forced appreciation"? This is when we increase rents, and in turn, we ultimately increase the value of the property. Apartments are valued uniquely, and because of that, we can force appreciation on the property simply by increasing the income and decreasing the expenses. So, if we generate a higher income, we can dramatically increase the property's value (i.e., from $10M to $14M) and pull out capital for our investors.

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We believe you deserve better than the hand of cards Wall Street has dealt you when investing your hard-earned money.

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If you're less than ecstatic about your current investments, looking at apartment investing may be well worth your time.

If you have questions about how it works, maybe you wonder if it could help you create more financial peace of mind – grab some time on our calendar.

We're pretty straightforward people and will let you know if we don't think it's the right fit.

Schedule some time with us ➡️ HERE.

Cheers to a profitable year,

Brittany & Greg

OWNERS CAPITAL