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100% of my net worth is in value-add income producing multifamily in high-growth locations.
There are no other investments that can compete with the upside combined with the limited downside:
1/10
There are no other investments that can compete with the upside combined with the limited downside:
1/10
2/10
Value Add
Target long term owners that strategically keep the rents low.
That way, even if the market rents drop by -4%, like it did in 2009, if the properties rents are already reduced by 10%-20%, you can absorb the hit without a drop in your rents.
Value Add
Target long term owners that strategically keep the rents low.
That way, even if the market rents drop by -4%, like it did in 2009, if the properties rents are already reduced by 10%-20%, you can absorb the hit without a drop in your rents.
3/10
Unpopular opinion: Turnkey deals with market rents are riskier than value-add.
If you buy a stabilized deal with higher rents, then the impact of a drop in market rents will hit you property first.
In that sense, stabilized deals are riskier than value-add deals.
Unpopular opinion: Turnkey deals with market rents are riskier than value-add.
If you buy a stabilized deal with higher rents, then the impact of a drop in market rents will hit you property first.
In that sense, stabilized deals are riskier than value-add deals.
4/10
Income Producing
Buy a 5% cap with 4.25% interest loan, and your deal can still positively cash flow with 25% vacancy.
Thing is, even during the great recession, vacancies did not fall below 10% in FL, which was one of the hardest hit states.
I like my odds here.
Income Producing
Buy a 5% cap with 4.25% interest loan, and your deal can still positively cash flow with 25% vacancy.
Thing is, even during the great recession, vacancies did not fall below 10% in FL, which was one of the hardest hit states.
I like my odds here.
5/10
In fact, renting became a lot more popular from the great recession bec after ppl lost their homes in foreclosure, they became renters.
The reason why there was even a 10% vacancy was bec families moved in together But the apartments quickly got absorbed by new tenants.
In fact, renting became a lot more popular from the great recession bec after ppl lost their homes in foreclosure, they became renters.
The reason why there was even a 10% vacancy was bec families moved in together But the apartments quickly got absorbed by new tenants.
6/10
Multifamily
Not single family homes, it's too risky to rely on one source of income.
People will always need a place to call home, a well built apartment complex can consistently produce cash flow for decades.
Best to get 10+ tenants w/ incomes from diverse industries.
Multifamily
Not single family homes, it's too risky to rely on one source of income.
People will always need a place to call home, a well built apartment complex can consistently produce cash flow for decades.
Best to get 10+ tenants w/ incomes from diverse industries.
7/10
A high growth location brings high demand for your asset for years to come.
It is irresponsible a long term hold in locations with a declining population, especially with a product that isn't necessarily going to remain in high demand like multifamily.
A high growth location brings high demand for your asset for years to come.
It is irresponsible a long term hold in locations with a declining population, especially with a product that isn't necessarily going to remain in high demand like multifamily.
8/10
As for upside, a well executed value-add deal can bring back all your invested capital in a refi, and you keep your property and CASH FLOW with infinite returns.
I'm refinancing a deal I purchased 2.5 years ago and returning 1.5x the original equity. No taxes on that $$.
As for upside, a well executed value-add deal can bring back all your invested capital in a refi, and you keep your property and CASH FLOW with infinite returns.
I'm refinancing a deal I purchased 2.5 years ago and returning 1.5x the original equity. No taxes on that $$.
9/10
This all assumes your doing all your debt with 5-10+ year terms so you do not have any looming balloon payments which can add a lot of stress to your deal.
This all assumes your doing all your debt with 5-10+ year terms so you do not have any looming balloon payments which can add a lot of stress to your deal.
Give me another option that meet these conditions and I'll diversify.
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10/10
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10/10
