My Realty Gains
According to the 2017 report from CBRE, multifamily investors have earned an annual average return of 9.75% between 1992 and 2017, which is higher than any alternative sources of passive income. Yet, investors hesitate before taking up a multifamily investment deal. Is it because of the humungous size of the project or the challenges that they think might arise?
1. It is expensive
An added benefit kicks in here- multifamily projects can diversify your portfolio in a shorter span of time. Rather than investing in one unit at a time, you invest in a property with at least 20 units.
2. Vacancies will affect the profitability
3. Financing is difficult
Moreover, when you enter the investment deal as a passive investor, the responsibility of procuring capital and finances lies with your chosen syndicator.
4. Maintenance is hard
Multifamily units cannot be invested in without a property manager. You need a professional manager to deal with gas leaks, renovations, trash, tenants, and emergencies. But as mentioned in the last point, you are a passive investor! All of these things would be looked after by the syndicator, his team, and the property manager.
If you’re still wondering where to
start from,we can have a
© 2022 My Realty Gains. Created by Fooracles. All rights reserved