The ONE thing you need in order to build wealth...

In all of my research, I have identified one thing you need to build wealth: predictability.

We’ve all seen the get-rich-quick schemes--retire before you are 30, make six-digits this year by following this program--types of marketing. Certainly there are many great and inventive ways to create more passive streams of income. However, if you really want to build wealth over the long term, you really don’t need schemes or good luck. You need predictability!

Many investors have called multi-family real estate the “perfect investment” precisely because of its predictability. These investments produce strong cash flow, equity growth, and huge tax incentives that have proved reliable across time and the ups-and-downs of the market. When managed by a reliable and knowledgeable team, these investments can be completely passive. I am not referring to your primary home or the single family investment that you inherited from your grandma, I am talking about large multifamily apartment communities with 100+ units.

Why invest in private real estate:

• Strong cash flow. Multi-family real estate produces consistent cash flow through the revenue of the asset. Rental income of the property, utility reimbursements, parking and laundry fees, and many other elements can provide revenue.
• Equity growth. Multi-family investments do not follow the same rules of appreciation as single-family real estate. The value for large multi-family is determined by the Net Operating Income (NOI). We can force appreciation through value-add opportunities that allow us to increase the revenue of the property, creating significant equity. I will write in a future email exactly how we look to increase NOI on all of our projects.
• Tax incentives. This is one of the most overlooked advantages in real estate! If you are only looking at an investment’s cash returns, then you are missing out on what helps so many investors build their wealth. When we take advantage of depreciation, we can actually write off the revenue we make from the property, giving the investor tax-free income. Real estate also allows you to continue to grow your wealth tax-free through vehicles like a 1031 exchange.
• Truly passive. This is the most important aspect to building your legacy. Why? Because your legacy is not just about the wealth you create. Legacy is also about the quality of your relationships, the kindness you show others, your faith, your contribution to your local community, etc. Multi-family investments allow you to build wealth while you eat, sleep, spend time with friends and family, play with your kids, attend a religious service, or volunteer at a charity event.
• World-class team. To help create this truly passive investment, you are not only investing into an asset, but a team. The team is made up of a several sponsors like myself who oversee and source the deal, alongside a professional property management team who work on-sight at the property. As a team, we all have specific roles so that everyone can focus on what they need to do to ensure the success of the investment.