‘You cannot go wrong with real estate.’ This is an old adage in the industry, and for good reason. While fluctuations in the market affect the short-term performance of real estate investments, these assets weather changes more effectively than others. Over time, real properties also appreciate in value, giving investors more incentives to include them in their portfolios.
One of the in-demand options in this space is Multifamily Properties. As the name suggests, Multifamily properties house multiple units within apartments or complexes. Investors love that these properties offer multiple rental incomes and, thereby, added safety nets for their investment. Are you weighing real estate options? Here are reasons why you should consider including multifamily real estate investments:
Low Starting Capital
Multifamily unlocks opportunities that are otherwise inaccessible to the sole investor. Syndication allows investors to share the cost with others, giving you access to more premium properties, competitive locations, and a significantly broader selection of assets.
Through syndication, you can pool your funds with others to bring down investment costs. General Partners, like Makaan, manage these investments, freeing you from burdens of day-to-day operations.
Scaling your investment also comes easier through syndication, with manageable costs that you share with other potential investors. Whereas investors in single-family residences have to manage the high costs of property construction and maintenance, multifamily investors enjoy fewer entry requirements and receive a fair share of the property’s total earnings.
2. Low Maintenance Cost
The beauty of multifamily investment lies in its low tenant variance. Its long-term occupants treat their rental homes with care and thus avoid unnecessary repair costs for investors.
Teams behind multifamily properties also have lead generation systems in place, providing active pools of potential occupants to reach out to in the case of occupancy. Considering the costs of finding new occupants, you are better off spending your money on value-creating strategies. Lastly, investors of multifamily properties get the economies of scale advantage. Better deals are available to them, as contracts and supplies are managed in bulk.
3. High Rental Income Potential
There are multiple ways to increase your earnings from multifamily investments: scale your current investment, increase your NOI with value-add initiatives, and grow your property list. Having trained professionals on your side can help you explore these strategies effectively and ensure your capital delivers the most value. General partners can guide you with their knowledge of hot areas for development, match your capital with the fitting property, and identify short- and long-term opportunities that contribute to your income potential.Being a passive investment, any additional multifamily property will not require additional time or effort from the investors. The only limit you’ll have is the one you share with your General Partners about how fast and aggressively you want to invest.
Both seasoned entrepreneurs and first-time investors have taken notice of multifamily properties. Speak to our team at Makaan on how you can leverage on the demand for multifamily properties to start building your wealth.
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