Why we chose Multifamily Investing!

What was our #1 goal when starting threefold real estate? To help others build wealth and passive income through real estate investing. 

As we started our journey we tried it all: raw land, flipping, small multifamily, etc. You name it we probably tried it. As we worked through each one we were not able to hit what we are looking for. 

Why Multifamily between 20 & 100 units?

1. People will always need a place to live
   1. Technology or government regulation can take away a profitable investment almost overnight, but there is nothing that can eliminate humans’ need for shelter.

2. Home ownership is declining
   1. Home ownership peaked at about 70% in 2005 and has fallen to 65% in 2019. Every 1% decline equals about 1 million new renters.*
   2. Millennials, burdened with student debt, are buying homes later, or not at all.
   3. Baby-boomers are moving out of their home-ownership age. Studies show, once they move to renting, they never own a home again.**
   4. Immigration has increased significantly over the past couple decades. Immigrants are renters about 50% of the time, and 74% of those under 35 rent.***

3. Recession resistant
   1. Multifamily outperformed other asset classes during the last recession, and we believe it will again during this recession. During the 2008-2009 recession, this asset class had less rent decline, the fastest recovery to pre-recession peaks, and significantly lower default rates.****

4. Leverage
   1. This powerful tool, when used correctly, allows people to combine their capital, then use the lender’s money to finance the other 80% of the purchase/rehab costs. For example, about $2.5 million dollars can purchase a $10 million property.

5. Tax incentives 
   1. Depreciation of a large assets

We don’t believe this is the only investment vehicle but we do believe this is the best for us! 

If you’re interested in learning more about multifamily please reach out to us!

* https://www.statista.com/statistics/184902/homeownership-rate-in-the-us-since-2003/

** https://www.cnbc.com/2015/06/24/wealthier-baby-boomers-shun-homeownership.html

***www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr2011-3-demographics.pdf

**** CBRE US Multifamily Research Report – February 2019