If you’re looking for an investment that will generate steady income and growth,
investing in an apartment complex is a great option. Here are some of the
reasons why:
- The more units there are, the easier it is to manage and finance.
- All of the units are in one location, which reduces management activities.
- There’s only one closing and one property to deal with.
- You’ll have just one financial statement to keep track of.
- The complex will produce enough revenue to hire property management.
- There will be enough cash flow to invest in capital expenditures (CapEx).
- More units mean more amenities can be provided, which translates to happier
tenants.
There are two main popular types of real estate investment: single family homes
and apartment syndication. Both offer a potential for high profit, yet which one is
right for you? Which is better?
There are a few key considerations to think about when comparing single family
home rentals and apartment syndication.
Profit: When it comes to rate of return on investment, apartment syndication
typically offers higher returns than single family home rentals. This is because
you’re able to generate income from multiple units, rather than just one.
There’s no doubt that real estate investing can be really lucrative. In fact, some of
the wealthiest people in history have made their fortunes through real estate.
One of the most famous examples is Andrew Carnegie, one of the richest
industrialists and billionaires, who said that “90% of all millionaires become so
through owning real estate.” More money has been made in real estate than in
any other type of investment. That’s because real estate provides a unique
combination of stability and potential for growth. If you’re looking to build wealth
by investing in real estate, you can be on a path to secure your financial future.
There are many reasons to invest in real estate, yet several factors stand out
above the rest: stability, inflation-proofing, passive income generation, and
creating wealth for future generations. Real estate is one of the most stable
investments you can make.
There are a number of ways to invest in real estate, each with its own
advantages and disadvantages.
One option is to buy property directly. This can be a good option if you have the
time and resources to manage the property yourself. However, it can also be a
risky investment, as you will be responsible for any repairs, etc.
Though both apartment syndication and single-family home rentals can be viable
investments, there are some key differences between the two. We’ll offer some
insight, so you can make an informed decision in alignment with what’s suitable
for you and your lifestyle, for real estate investing.
Financial advantages of passive investing through apartment
syndication
When you invest in apartment syndication, you benefit from the expertise of a
professional team who are experienced in making these types of investments.
This can help you to make better returns on your investment than if you were to
go it alone. When you invest as part of a group, you can tap into deals that
would be out of reach if you were investing on your own. Plus, as a passive
investor, you can sit back and let the professionals handle the details…. As a
passive investor, you can enjoy the benefits of having a highly skilled team of
real estate professionals working on your behalf. This means that your money is
being put to work by skilled investors who understand the market and how to
profit from it. You can relax and enjoy your busy, life and career while your
investment grows.
If you’re looking for an investment with better returns than the stock market, look
no further than apartment syndication. With annualized returns of 14% or higher,
investing in apartment buildings can be a great way to grow your wealth. And
because you’re working with a team of experienced professionals, you can focus
on other things today that matter to you most.
The bottom line
Consider the stock market, and the average rate of return over 15 years; that
could be about 7% on average, which is decent…Yet after you calculate taxes
and the impact of inflation, you might have a measly 2.5% in profit from stocks.
Now, consider how that contrast with an apartment syndication over a 5 year
hold period, with 15% or more annually? Multifamily apartment syndication wins!
If you’re interested in learning more about this topic, click here.
If you are interested in future investment opportunities, click here.
By Kelsie Mans-Ray
KMR Multifamily Acquisitions / Syndicator
NOTE: This information is of a general, educational nature and may not be construed as tax, financial, or legal advice pertaining to a specific offering, exemption or situation.
