The recession has made many people reevaluate their financial priorities and consider investing in multi-family properties. But there’s the question of whether this kind of real estate investment is as reliable and profitable as others make it out to be says TJ Cremeans the CEO and Founder of Legacy Real Estate Group, an investment group dedicated to educating and providing potential investors with intelligent investment opportunities, weighs in on the matter.
According to the group, multi-family properties are generally more stable than other forms of real estate investments. Unlike in single-family properties where profit is solely reliant on a single tenant, multi-family properties aren’t. Even if there’s a vacancy, with a market understanding and conservative underwriting they can still generate steady cash flow since multiple tenants are paying rent.
During the height of the COVID-19 pandemic, multi-family apartments proved their resiliency as rental demands remained strong. TJ mentions “One of our top reasons for investing in Multifamily is its resiliency during inflation and economic downturns”. Most tenants are signing 1 year leases which allows us to increase rents thus increasing our bottom line year after year.
Many families opted to sell their homes and downsize, choosing to rent an apartment instead.
Moreover, multi-family investing is remarkably scaleable. “Multifamily investing allows us to scale our portfolio, all while being able to offer solid returns that are backed and secured by a strong performing asset” says TJ. New investors worried about the responsibilities of owning apartment buildings may choose to start small with a 4-5 unit investment property and build on that as their profit grows and their proficiency increases.
Owners may choose to diversify their portfolios by purchasing for either the immediate cashflow opportunities in some markets or the continued strong appreciation of their asset in other markets as the demand for performing assets increases. Depending on your desired location and risk tolerance A, B, and C class properties provide a variety of investment options.
However, knowing the advantages of multi-family properties is not the same as succeeding as an investor. A solid understanding of the market is crucial.
Legacy Real Estate Group offers its expertise in multi-family projects to position investors on the right path forward. It utilizes cutting-edge technologies to analyze trends and identify the best opportunities that provide near-immediate cash flow and long-term profitability with minimal risk.
TJ emphasizes the importance of having a long-term perspective that isn’t swayed by short-term market trends. Each property they invest in is carefully selected to align with the company’s investment philosophy and for the long-term benefit of the group and investors.
Top five reasons to invest in multifamily…
- Inflation resistance
- Ease of management
Connect with Legacy Real Estate Group today: http://www.legacy-reg.com/.