Five Benefits of Making Multifamily Investing Part of Your Portfolio
Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.
1) Reliable in all economic cycles
The pandemic provided a strong testament to the reliability of making multifamily a part of your portfolio. Even during times of slow economic growth, multifamily investing boomed thanks to notable rent growth, stiff vacancy rates, and increased migration. A survey of 1,240 investors during the pandemic found that 90% of the group planned to add multifamily real estate to their portfolios during the pandemic.
2) Simple and streamlined investing strategy
Financing a multifamily venture is a smart strategy for investors who are looking to grow a real estate portfolio. Multifamily investments can offer an opportunity to acquire many properties in a single deal, saving time and energy. For limited partners looking to join the team of a general partner, investing in multifamily properties can be relatively inexpensive while still generating high returns.
3) Provides steady income and significant ROI
The benefits span far and wide for investors wanting to build, rent out, or sell a multifamily investment. The steady income of rent payments helps investors offset the costs of a mortgage, insurance, property taxes, utilities, repairs, and management expenses while the selling of properties can create significant returns on investment.
4) Diversified investments spread out risk
When units go vacant, residential landlords lose out on earnings. But owners of a diversified multifamily portfolio can still generate income if one of their units requires repairs or goes vacant because they have other units that help diversify and solidify their portfolios. Spreading out risk makes multifamily a more stable investment strategy.
5) Multifamily lenders can help amplify returns
Multifamily lenders like Arbor can provide sufficient liquidity to close deals, add leverage to amplify returns, and provide due diligence for the reassurance of both borrowers and investors. They also often provide life-of-loan servicing and assist with further portfolio acquisitions, refinancings, and divestments.
Arbor is a multifamily investing partner rooted in relationships
At Arbor, we value our customers to such an extent that we’re more comfortable calling them partners. Relationships are the foundation of our business, and we’re committed to providing the best and most competitive service in the industry. We’re not just another multifamily lender, but a financial partner that personally works to customize the right loan solution, deal after successful deal.
Contact us today to learn how Arbor can help you achieve your multifamily investment goals.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily and single-family rental financing options and view our other market research and multifamily posts in our research section.