Here’s what’s driving this market now…
Safety For Investors
From the largest institutions to individual investors, multifamily real estate is the safest play to be made in 2020. With the mayhem of the election and fresh recession rumors, multifamily is a great place to move capital to protect it in the strength of bricks and mortar and land. There are lots of upsides too. Tax benefits, high yields, appreciation, and cash flow. Investors simply can’t afford to have all their money in public stocks, private startups, or bonds this year.
The Preferred Investment Of The Smart Money
Commercial real estate debt is the preferred investment of big and smart money. The market makers. This is true from the biggest endowment funds to life insurance companies, pension funds, banks, and international sovereign funds.
With questions still remaining about how much office and retail space we really need, and all this extra availability of capital, multifamily stands out as the best move that can deliver consistent cash and returns too.
Investors Moving Up From SFR
The explosion of activity in single-family property investing is rolling over to multifamily. After an incredible bull run in single-family residences, investors have amassed a lot of cash and equity. However, they are finding it increasingly difficult to find deals that make sense in this space. They need to invest more efficiently. Many are moving up to apartment buildings and promoting it as the best investment to their connections. All this extra attention is going to drive up prices and values.
Demand for rentals is surging too. It has become too expensive and cumbersome to buy homes. Even those who want to are struggling to save for down payments and decipher the new mortgage market. With the election and fears of a new recession, many more will hold off on buying this year. Many will cash out equity in their homes and rent until the dust clears.
How are you investing in multifamily this year? Will you invest early enough to enjoy the best gains?
ABOUT THE AUTHOR
Bill Zahller is the Managing Partner of Park Capital Partners, LLC and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Partners, LLC in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalPartnersLLC.com for more information.