Are you tired of stock market manipulation? Especially after the recent short squeeze of GameStop stock by Wallstreetbets and Robinhood investors? If so, one of the best things any investor can do to avoid the ups and downs of the stock market is to invest in multifamily real estate instead.
Stock market manipulation has been around forever but with the advancement of the growth of the internet, and the advancement of apps, we’re seeing both stock marketing shorting, and the short squeeze more often.
What happened with GameStop won’t be the last time we see a short squeeze of those epic proportions again and this is one of the biggest reasons why investors are getting out of the stock market and are focusing on investing in multifamily real estate.
Why Invest In Multifamily Real Estate?
With Multifamily Real Estate, investors are escaping the hectic pace of the stock market and are enjoying a steady, consistent return on investment that comes from being invested in real estate.
When an investor chooses to invest in multifamily properties, they have to make a capital commitment. This prevents unqualified investors from participating in multifamily investing, especially those who might be broke or are investing their last $1000 with the hopes of generating a windfall in ROI.
The Capital Commitment Of Stops Get Rich Quick Investors
Since most direct investments require a minimal capital commitment of $30,000, this creates a ‘barrier to entry’ for some investors who want to participate in multifamily real estate but it also helps to ensure that the pool of investors who are involved in multifamily is qualified, and accredited.
The fact multifamily investing encourages qualified investors to participate in investing in multifamily properties should encourage investors who may be sitting on the ‘sidelines’ wondering if multifamily is the right investment opportunity for them.
Illiquidity Is Another Some Investors Avoid Multifamily Investing
Besides the qualified investors who invest in multifamily properties, another reason new investor who considers investing in multifamily is illiquidity.
What does illiquidity mean? Quite simply, this means that unlike stock market investing, where everything can happen instantly, multifamily investing requires investors to be ready to commit to ‘locking up’ their capital for five years or longer.
Multifamily Is Also Insulated From The Volatility Of Other Markets
Thankfully, the illiquid nature of the multifamily market essentially ‘insulates’ it from investors who are searching for fast profits, and the market is also insulated from volatility which may be occurring in other markets as well.
When the stock market, and other investment markets go crazy, or everyone is participating in the short squeeze like they recently did with GameStop, smart investors who want steady returns start focusing on investing in multifamily because they want to jump off the wild ride that is the stock market.
Real Estate, especially multifamily properties, will always continue to be assets that are in demand, sure and safe because they can’t be bought for $1, or shorted like the Stock Market. Investors who put their money into multifamily can predict steady, stable returns and that means everything in a world that’s constantly changing.
There Will Always Be A Demand For Multifamily Properties
Another big reason investors should consider putting their money into multifamily properties is demand.
When an investor chooses multifamily properties over other investment vehicles, they can have confidence that they are going to be investing in something that’s always in demand because people will always need a place to live.
This has been especially true over the last 12 months as many investors experienced record losses in the stock market during the pandemic, while investors who own multifamily properties nationwide have continued to see steady ROI.
Multifamily Properties Vs. Single Family Homes
As an investor, you may be thinking about investing in single-family properties first, before investing in multifamily properties.
Even though investors on television are often shown investing in single-family properties, the reality is that multifamily properties are better than single-family because, with an apartment building, I’m always going to be earning income, even when one of the units in my property is vacant.
The great thing about this is that my occupied units will always cover my mortgage and other expenses for the property.
Contrast this to the investor who owns multiple single-family homes, if one of their properties is vacant, that property is not going to be earning any income and the owner will be faced with having to cover their mortgage and other expenses out of pocket until they find a tenant.
Where To Find Multifamily Properties?
If you’re ready to get off the Stock Market rollercoaster and avoid the short squeeze like what we saw recently with GameStop, the next step is to move forward with sourcing and acquiring your first property.
What’s ideal about these properties is that they are available in most cities across the United States.
You can invest in a property in your city, or choose other cities nationwide that you would like to own apartments, condos, or townhomes.
When searching for these properties out of state, make sure you do your research, follow the principles of due diligence because you want to have confidence in the property that you’re investing in.
Contact Trier Capital
At Trier Capital, my team and I have developed a process for sourcing, acquiring, and managing multifamily properties nationwide.
We save accredited investors the time, money, and hassle of having to invest in these properties themselves.
Multifamily real estate has the best risk-adjusted return of any real estate asset class, stocks, bonds, and REITs for the past 20 years.
To learn more about partnering with my company, I invite you to contact me at (630) 229-2383 or click here to connect with me online.