Want to learn all you need to know about the 4 types of multifamily asset classes? This video will walk you through the differences in each multifamily asset class and the effect it has upon your investment. Multifamily real estate investing is considered one of the best and safest asset classes to invest in. Investing in apartments allow for low risk, high returns, significant tax benefits, steady cash flow growth, and asset appreciation. At Disrupt Equity we focus our multifamily investment strategy on class C assets. Class C properties give us a value-add opportunity – meaning it gives us the ability to increase a properties purchase price, it’s cash flow, while simultaneously improving the assets community! For more questions on multifamily asset classes or multifamily investing strategies make sure leave a comment down below!
This is Jane
Jane is on the road to becoming a passive investor in multifamily real estate!
Jane is presented with many types of apartments to invest in but does not know which one would provide her with the greatest return on her investments.
Jane is told by Derick, that just like her kids report cards, apartment complexes are also graded!
Derick says that multifamily assets are evaluated based on their location, age, amenities, and their level of rental income.
Derick tells Jane that Class A apartments represent the newest and most luxurious complexes built within the last ten years.
Class B apartments are nice complexes built within the last 20 years but are not quite up to the highest standards as Class A.
Class C apartments are usually over 30 years old. These properties might include outdated interiors, exteriors and need some improvements.
Lastly Class D complexes are considered extremely run down and need major repairs!
After hearing this Jane immediately thinks she should invest in Class A properties because of their beautiful construction and location…… BUT Derick advises her otherwise.
Derick informs Jane that Class C offers a huge opportunity for value to be added to the property!
Investing in Class C allows new owners to come in, renovate the property, improve management, and dramatically increase the worth of the asset!
These changes will allow rent growth and occupancy to skyrocket! Giving investors a much higher return.
Jane is now very confident in her decision to invest a Class C complexes!