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General Real Estate Investing

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Bronson Hill
  • Rental Property Investor
  • Pasadena, CA
9
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18
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WHAT IS THE BEST INVESTMENT STRATEGY DURING (OR AFTER) A PANDEMIC

Bronson Hill
  • Rental Property Investor
  • Pasadena, CA
Posted Jan 5 2021, 06:34

Ever wonder what is the right thing to do with your money?

Do you have any investment strategy?

Are you sick of the volatility of the stock market?

If you are looking for investment options during these uncertain times, then you have come to the right place.

In this article , I will share the whole other way of investing that will give you better returns without the volatility.

THE VOLATILITY OF THE STOCK MARKET

It's been said that history doesn't repeat itself, but it does rhyme.

Just like the other black swan events, no one could have predicted the coronavirus pandemic. These unpredictable events brought many uncertainties and a lot of volatility to investments, particularly the stock market.

Now the stock market has a . The returns over time are okay, but with the volatility, you end up losing a lot of your gains.

The whole idea of investing in the stock market is to just buy and hold for the long term. This long-term approach helps weather some volatility, but if there is a 50% decrease in your investment, then you have to increase by a hundred percent just to make up the losses.

In March 2020, there was a in many of the indexes. It recovered but there's a lot of volatility. And with the current situation we are in, we just don't know what's going to happen.

What to Expect From the Stock Market in Terms Of Return?
With the stock market, the returns are fairly modest.

If you look at the stock market data from 1965 to 2018, you have just over a 6% average annual return. On top of that are the excessive fees, which are around 1.5% per year for a mutual fund or other sorts of fund.

If you have someone who manages your investment, the money guy will take 2% and other hidden fees as well. Whether they're disclosed or not, they end up being typically 4-5.5%.

So, basically, most of your money is gone. Wow! Isn’t that a bummer!

So what to do now?

Answer: Multifamily investment properties!

Let me explain!

MULTIFAMILY INVESTMENT PROPERTIES: SAY YES TO LOWER RISK, BETTER RETURNS

Andrew Carnegie, who was one of the wealthiest men of his days back in the late 1800’s, said "90% of all millionaires became so through owning real estate."

Multifamily property investment is the best investment where you can get better returns without the volatility experienced in other asset classes.

However, there is a misconception when it comes to real estate investment. Immediately, what many people think is that they need to buy rental houses and become a landlord.

Maybe you've done that and you've realized that it is really a tough job to do.

But there is more to real estate investment and you can really have something that is a much more passive investment.

Yes, you read it right - REAL PASSIVE INCOME!

MULTIFAMILY INVESTMENT PROPERTIES - What is this?A BETTER PASSIVE INVESTING OPTION

The amazing thing about working with multifamily passive investing is that there are many groups out there that are very experienced.

These groups are buying large apartment buildings, which are very stable, and they say, we want to raise money from investors.

It could be $50,000 or $100,000 (whatever the minimums are) and investors will invest. And so they'll do their diligence on the front end. And then they will share in the returns that are brought by this property.

Why Investing in Multifamily Properties Is A Better Passive Investing Option?

The idea of having a passive investment is really amazing! The hard work is finding an experienced sponsor, vetting the sponsor, and vetting the deal.

But the amazing thing about multifamily investing is that it's a consistent, double-digit historic return.

Obviously, every investment has a range of returns. We have ones that haven't performed as well, around 8 to 12% but there are also several that have performed over 30%. But it is very common that we see a consistent 12 to 20% return, which is pretty amazing.

BETTER THAN THE STOCK MARKET

When the stock market dropped in March of 2020, our multi-family assets didn't drop at all, which makes this asset class really unique.

Passive multifamily investing gives busy professionals a lot of passive income opportunities without managing the properties themselves.

Multifamily investing is indeed a way to get involved passively.

START EARNING A TRULY PASSIVE INCOME NOW

Multifamily investing is the most compelling investment not only during a pandemic, but also after this chaos is over.

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Marlen Weber
  • Specialist
  • Plano, TX
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Marlen Weber
  • Specialist
  • Plano, TX
Replied Jan 5 2021, 06:49

Great information, @Bronson Hill. Thanks for sharing this. It's more common than we think for us to get "stuck" and not invest properly (or at all) because we simply don't know what the best strategy would be. 

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Steve Morris
  • Real Estate Broker
  • Portland, OR
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Steve Morris
  • Real Estate Broker
  • Portland, OR
Replied Jan 5 2021, 06:55

What exactly are you selling?  Am getting prepared for the next pandemic.

Which is halfway joking - We got SARS and now COVID from China and I have no doubt that when they throw us strike three it'll be worse.  Add in not one politician is even thinking of doing anything here and I think it'll be a 103 mph fastball down and away.

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