Get In on the Ground Floor: Invest in Multifamily Properties

Get In on the Ground Floor: Invest in Multifamily Properties

If you are planning your financial stability, then investing is the way to go. Stocks and bonds sound great, but the real money is in real estate. This is why you will want to start buying properties and developing them. You can either rent them out or flip them later. There are different types of properties out there and one of your best bets it to get a multifamily property.

Multifamily properties refer to buildings that can handle two or more families. They range from duplex buildings to full-on apartment complexes. Owning and developing them is a great investment, and here are some reasons why.

Easy to Finance

One of the big barriers that people have when beginning real-estate investing is that they don’t have the money to fund it. The main way people fund their real estate purchases is via loans. Note that multifamily properties are more expensive than single-family ones. But you will find that approvals from banks or the local FHA or HUD multifamily lender are easier to come across.

This is because multifamily properties are proven moneymakers. Once it is fully set-up, your property will earn money constantly every month. As long as you fill it up, you can be sure to pay off the loan quickly. This is what lending institutions are after, and they will always bet on a sure thing.

Get Your Income Quick

The immediate flow of income once you have occupants is also the other reason why you will want to invest in it. When you have full occupancy, you can start earning back your initial investment. Unlike stocks or bonds, there is no waiting for maturity. You get the money back, and you can start investing with it again. It is not surprising that many millionaires started out as real-estate owners.

Little to No Tax

Though there will be taxes on your income, you will not have to face the usual capital gains tax that most investors have to pay. This is done by deducing depreciation and capital expenditure from your income calculations. This can mean a big jump in profits since capital gains are one of the more punishing taxes out there.

Always a Need

Like food, shelter is an essential need. You will find that if you price your rent correctly, that you will always have people willing to rent one unit or more. Plus, more and more people are going to grow up and want a place to stay.

With a major source of shelter worries removed, they can focus on more important things. Rentals are especially popular right now. The bad economy discourages people from buying homes. They would prefer to be safe with their housing situation and pursue rental spaces for their homes.

Properties Age Well

Properties are a great hedge against a volatile market. Stocks drop and rise in value. Property values do move, too. But unlike other financial products, your property can cycle in value. It may be cheap now, but it can go up in the future. Just ride out the tough years and sell when the value has skyrocketed once again.

Investing in property is always a good choice when you have the money. Multifamily properties can be expensive, but they will pay off in the future. The reasons above should be enough to convince you that putting your money on them is a good choice.

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