Specialty Investment Group uses strict investment criteria to filter and source ideal properties in the multifamily market. These properties will be presented to you with information that will allow you to carefully evaluate the opportunity in line with your investment parameters and goals.
Apartment Buildings have been termed by some as the “Perfect Investment.” What makes multifamily real estate so attractive?
Real estate of all kinds has proven to be one of the safest and most stable assets that we can own. What it lacks in excitement it more than makes up for in stability. We won’t be surprised by large double digit increases in value overnight, yet we will sleep well knowing that real estate values historically have steadily risen and rarely fall. Multifamily real estate is especially recession resistant, as in slower economic times more people continue to rent instead of buy, and everyone must live somewhere. Banks who lend on apartment buildings have strict requirements that assure the safety of our investments. While no opportunity is completely risk free, multifamily is about as close as it gets.
Each apartment complex is a small business. Tenants pay rent each month. The property is managed by professional property managers, and serviced by professional contractors and maintenance personnel. After the bills are paid, the remaining cash is distributed to the investors. All with no time or effort spent on managing the property. This is truly Passive Income.
Multifamily real estate gives investors access to the magic of depreciation. Each year investors share in the non-cash deduction of the cost of an asset that is actually going up in value. We accelerate the depreciation where possible through strategies such as Cost Segregation Studies and Bonus Depreciation.
The benefits of investing in real estate are great, but you don’t want to deal with toilets and termites. We use professional third-party property management for all our apartment buildings. Investing in apartment buildings with others allows for the purchase of larger assets which offers economies of scale thereby lowering expenses. Multifamily properties are not only a place to park cash to hedge the depreciating dollar, but also, each property is a cash flowing business and is managed as such.
Apartment buildings with opportunity for improving the property offer an additional method to generate a return on the investment beyond rent collection. By updating the units and common areas or adding sought after amenities such as covered parking, dog parks and package lockers, one can create nicer communities that tenants are willing to pay more for. This strategy, called “Value Add,” when done correctly, increases the net income produced by the property, thereby driving the value of the investment higher. This is known as “Forced Appreciation.”
