*New Deal Alert – The Hill at Woodway! Keep Reading to Learn More!* Investing is the process of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. When we think of investing, most people would presume the stock market to be the most familiar and traditional approach. However, in recent years, more people are investing in real estate, particularly in multifamily residential properties.
There are many advantages to investing in multifamily real estate over conventional stock investments, treasuries, and cash. This post intends to educate real estate investors who are looking at different investment options, particularly in the multifamily property market.
Appreciation
Multifamily properties have historically gone up in value over time. Unlike stocks, multifamily properties allow for great upside potential. Leveraging our value-add component, we can help force the appreciation and drive NOI from our efforts—not just to rely on what is happening in the market.
Depreciation
Multifamily properties offer the advantage of depreciation, which is a valuable tool for multifamily investors. The IRS allows property depreciation over 27.5 years. With bonus/accelerated depreciation and cost segregation, we can depreciate even more in earlier years, improving your overall return and providing you with tax-free income.
Cash Flow
Furthermore, multifamily real estate offers investors a reliable source of cash flow. By pooling resources, investors can purchase different properties, across multiple asset classes, that generate solid returns over time, plus some cash flow now. Stocks, on the other hand, offer no guarantee of cash flow. Additionally, timing the market or choosing the right stocks to invest in, can be a daunting task for novice investors.
Leverage
Leverage is another advantage of investing in multifamily real estate. It involves using other people’s money or other people’s time to accomplish your goals. This reduces the amount of personal resources you use and maximizes your returns. When investing in syndications, you’re leveraging both. You’re using ODC’s team of people, systems, and processes as well as leveraging your (and others) capital to purchase large multifamily assets. Unlike stocks, where you have zero control over how your money is invested, the money you put into multifamily real estate is tied to tangible assets you can see and touch.
Hedge Against Inflation
Finally, investing in multifamily properties offers the opportunity to invest in a hedge against inflation. Inflation can cause the value of money to lose buying power over time. Real estate investments like multifamily properties have proven to be an effective hedge against inflation, particularly with increasing rental income and appreciation.
Our most recent offering, The Hill at Woodway offers all 4 of these powerful wealth-building tools
We have control of the asset; therefore, we can make improvements and drive NOI. We’re offering an exceptional year-1 tax write-off (depreciation). And we’re going to leverage your (and Disrupt’s) capital to assume an amazing fixed-rate mortgage of 4.3% — offering a preferred return of 8 or 10% (cash flow), with a target average annual return of 16-18% per year (appreciation).
If you’ve been following us over the years, this is no surprise! We’ve invested millions alongside LP investors just like you with the purpose of creating financial freedom.
WANT TO LEARN MORE ABOUT OUR LATEST OPPORTUNITY – THE HILL AT WOODWAY? CLICK ON THE “LEARN MORE” BUTTON!
