Create Your Own Pension By Investing In Apartments

Investing in apartments is a great way to diversify your portfolio. One of the attractive aspects of apartment investing is that you have some measure of control over the success of your asset. For you more adventurous types, there are value-add deals to be had. For the risk-adverse, apartments are an excellent hedge against an unsure future.

Here are the “magnificent seven” reasons that multifamily investing can secure your future.

1. Economies of Scale – having many head in beds at one location dramatically reduces the expenses of many roofs and the associated costs for each single family rental. (Think landscaping, roofs etc.)

2. Tax Advantages – There are very few investments where you can make income and claim a loss through deprecation – this where a savvy accountant can make or break your deal. You can see more on this topic here.

3. Low/Mitigated Risk – See #1 (economies of scale), when one tenant moves out, there are others supporting your bottom line. Here’s where larger deals really make sense. You’re also personally driving results at your property through your property manager (no plunging toilets necessary!)

4. Historic Demand – Demand for apartments is at an all time high, and the supporting demographics; (Millennials, Boomers) show no sign of slowing down.

5. Available Financing – Local & Regional Banks as well as Freddie are aggressively lending on multifamily. This is not the case for single family investment homes.

6. Equity Creation – Your tenants pay down your mortgage while you receive ongoing cash flow. Many of our clients then refinance and take that tax-free money to buy another building.

7. Potential Value Creation – There are various ways to implement this strategy – from rebranding a property to gut-renovations, as long as you buy right, you can dramatically effect positive bottom-line changes to your property.

For even conservative investors, apartment buildings offer stability. No matter what your appetite, I am confident that there is an apartment deal out there for you. This is how you can create your own “personal pension” to secure your future or retirement.