In today’s world, there are a wide variety of investment opportunities including multifamily investing, cryptocurrencies, stocks, bonds, and other commodities.
The big question is which investment opportunity is the right one for you? Especially when your goal as an investor should be to invest your money in something that’s stable and will provide you with excellent ROI for years to come?
Even though there are many investment options out there, the reality is that multi-family investing continues to be the best investment opportunity in 2021 that provides the most consistent cash flow and return on investment.
If you are still “on the fence”, or unsure about investing in multifamily properties, this article will provide you with several reasons why multifamily investing continues to outperform other investment opportunities.
The first reason why multi-family investing outperforms other investment opportunities is leverage.
When you invest in a multi-family property with as little as $150,000 in capital, you have the opportunity to control an asset that can be valued as much as $1,000,000.
Besides leverage, some other benefits that come from being invested in multifamily properties include tax benefits, appreciation, economy of scale, and principal paydown.
Even though leverage is a wonderful reason to invest in multifamily properties, the reality is that leverage can also adversely affect you as well, especially when you lose money on the investment because those losses will be amplified.
Another excellent reason to consider investing in multifamily properties is liquidity.
When you invest in an apartment building, duplex, triplex, or fourplex, you can access liquidity from that property utilizing strategies like cash-out refinance.
Also known as a refi and roll strategy, Cash-out refinance is one of the most common ways that Real Estate Investors can efficiently build a large portfolio of investment properties in a short period of time.
More Control Than Other Investments
If you study the stock market for any length of time, or other investment opportunities, you will know that most markets are subject to the control of the federal government, or they are easily manipulated by other groups within the market.
A good example of this is the recent activities of Wall Street Bets, a Reddit sub group that artificially manipulated GameStop’s stock price over several days, and even after recent investigations by the Securities and Exchange Commission, Wall Street Bets continues manipulating this stock price along with other commodities.
When you invest in multifamily properties, if you can have confidence that a multi-family home is not going to be subject to the control of other people or groups within the United States.
Multifamily properties are always going to be in demand because of the simple fact that people will always need a place to live.
As an investor, you can control your multifamily properties by increasing the rents, decreasing expenses, creating a business plan, scaling up or scaling down your property, and determining when you’re going to either refinance or sell the property itself.
Yes, owning a multi-family property does offer you lots of opportunities to have control over that property, especially if you choose to treat that property as a business by hiring and full-time employees to manage it, or if you decide to outsource the management of that property to a local Property Management Company.
Where To Find Multifamily Properties In 2021?
In 2021, there are a wide variety of multifamily properties across the United States since more inventory is being constructed every year.
Thankfully, you can invest in multifamily properties in your city, or you could choose an up-and-coming city across the United States where you think that most people will want to move within the next couple of years.
Some of the hottest cities for investing in multifamily properties in 2021 and beyond include Miami Florida, Dallas Texas, Houston Texas, and Phoenix AZ.
Regardless of where you choose to invest in multifamily properties, the most important thing that you need to do is focus on passive investing instead of active investing.
Keeping the focus on passive investing is important because many people make the mistake of attempting to manage their multifamily properties themselves and the properties that they own ultimately turn into a second or third job. Don’t let this happen to you!
Regardless of when or where you invest in a multi-family property, make sure that your first goal is to make the management of that property as passive as possible so you can focus on growing your portfolio of investment opportunities and enjoying your life.
Contact Trier Capital
Trier Capital is a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
We do all the hard work to find and acquire ideal properties, and then oversee asset management after purchase, while our investors sit back, relax, and receive tax-advantaged passive cash flow.
For more information about partnering with my company, contact me today by calling (630) 229-2383 or click here to connect with me online.