If you have been beaten up by the stock market recently or are sitting on a lot of cash and looking to make a play, strongly consider C Class Multifamily Real Estate as it is well positioned to significantly increase in value in the coming years.
Right now a lot is going on with the world with the CoronaVirus. We are in a global pandemic with no end in sight. How long will this last? Are we going into a recession? No one knows. What I do know is that my Real Estate Investment Firm, Stuart Acquisition, is heavily investing in C Class Multifamily Real Estate. Why?
- Tax Advantaged Cash Flow: The very nature of a C Class Multifamily asset is to produce cash flow (5-10%). If you find that your personal income has been negatively affected by CoronaVirus or the upcoming recession, this could be a great way to hedge against that. This investment is designed to supplement your income. Also, the government wants you to own these assets and as a result gives investors like yourself large tax incentives such as depreciation. Chances are you will not be paying taxes on any of the cash flow you earn from your property. Incredible.
- We Are Ever Becoming a Renter Nation: More people are becoming renters, the demand is increasing and yet the supply is staying the same because the profits are too thin for developers in the workforce housing space. They prefer to build Class A apartments where the margins are significantly better for them. Basic economics tells us the price of C Class apartments will be going up. Especially if we hit a recession, home owners will trade in their homes for apartments. A&B Class apartment residents who can no longer afford the luxury amenities will transition to renting in Class C buildings. This is a trifecta of demand that will create a shortage of this type of affordable workforce housing, fueling long term rent growth in the space, ultimately driving up the value of these properties.
- Interest Rates Are At Historic Lows: You can lock in an unbelievable rate today for years to come. Lender’s love the Multifamily Asset Class, and right now you can lock in financing as low as 3.5%. As you can see the 10 year Treasury yield (which is what many of these mortgages are based off) has significantly dropped. Below 1%!
- Chaos Creates Tremendous Opportunity: This is when you find those once in a lifetime deals. Panicked sellers who are over leveraged are, are fire selling their assets because there is so much uncertainty everywhere. Take advantage of this. If the deal makes sense, pull the trigger. Run to the Roar.
The time is now, invest in C Class Multifamily Real Estate.