Investing in multifamily real estate is a viable way to create passive income for an investor. Our strategy of acquiring stabilized multifamily properties allows for property cash-flow on the first day of ownership. Additional cash-flow is also created as the business model is implemented upon new ownership. Distributions to investors are typically made on a quarterly basis.
Multifamily offers several tax advantages that are not available for traditional investments. A deduction can be taken for the property's depreciation (27.5 years) and with the new tax law in effect (2018), certain components of the asset can now be depreciated in the first year of ownership. In addition, at the sale of the property, a 1031 exchange can be utilized to further defer the taxes owed. **Please make sure to consult your CPA before making any investing decisions.**
A number of financing options exist for multifamily projects, including loans from government-sponsored enterprises like Fannie Mae and Freddie Mac. Most of these financing options are non-recourse to the borrower.
Multifamily assets are valued by their net operating income (NOI), divided by the market's capitalization rate. Our mission is to locate and purchase properties where our improvements would create increases to rental revenues and/or decreases to maintenance and repairs. These gains are recognized through the property's increased cash flow, as well as upon the property's sale or refinance.
There are 80 million Millennials that prefer to rent verses buying and Baby Boomers are increasingly downsizing to the low-maintenance lifestyle of renting.
We not only protect, build, and increase our investors capital, but we do it while improving the communities of our tenants. Through your investment of capital into our assets, we are able to provide our tenants updated interiors, exteriors, and a top-notch management team for a clean and safe living environment.
Perform Due Diligence
Raise Equity and Secure Financing
Execute Capital Expenditure Plan
Manage 3rd Party Management Team
Monitor Financials and Operational Goals
Monitor Property Performance Against the Business Plan and Market Environment
Prepare 3rd Party Management Team and Property for Disposition