Why multifamily real estate is the ideal choice for hands-off investment
Whether you're brand-new to investing or looking to diversify into real estate, the options available can be overwhelming to the average professional. While you may have the funds to make some great investments, knowing where to put your money is half the battle. From house flipping to commercial properties, individual homes to hotels and complexes, making a smart investment is a challenge when you don't know the ins and outs of the real estate market.
That's where multifamily investment comes in. As one of the lesser-considered property types by new investors, many real estate newbies miss out on the excellent opportunity that medium- to large-scale apartment buildings can offer. But with the right service and the right property, multifamily can be the ideal way to passively build wealth in even the most volatile of real estate markets.
What is multifamily?
Multifamily refers to any property that includes self-contained units or apartments. Typically, these apartment blocks are anything from a couple dozen to hundreds of individual properties. Much like any other property, multifamily buildings are graded on their location and the quality of the units and building itself.
At Maven Capital Group, we focus on B-tier multifamily residences. This means middle-tier properties with plenty of room for value-add improvements and renovations to build our investors' wealth and returns over the years. In addition, multifamily properties are often managed by a property management company rather than the owners, allowing investors to enjoy an extra degree of hands-off when building their wealth.
Why is multifamily less volatile?
What makes multifamily a more stable option than other types of real estate on the market? You can think of apartment blocks as their own little ecosystem of investment. Instead of relying on the whims and changes of the broader market, income from multifamily residences tends to increase in value, regardless of anything else that's going on in the wider world.
Because of this 'bubble' of income, there's also more opportunity to value-add in a range of different ways. That could mean saving costs of utilities with renewables, renovating existing units, or modernizing older buildings. Instead of going with the flow, owners of multifamily properties can set their own standards and take actions to add value, which benefits investors with less-volatile growth as a whole.
Should I invest in multifamily?
If you're considering getting into real estate investment, multifamily is an excellent place to start. Short on time, but have the funds needed to start building wealth? Working with a service specializing in apartment complexes and buildings is an excellent way to go hands-off and still see results.
Multifamily also has the benefit of being about large, high-cost properties that can be split between investors. That means multi-million-dollar blocks are accessible to investors who aren't on the level of 100% purchase yet. However much you invest, it's crucial you pick the right service along the way, especially when it comes to actively adding value to newly purchased buildings.
At Maven Capital Group, we're specialists in multifamily real estate investment. If you're looking to invest without the stress of day-to-day management, we're here to make wealth-building easier for you. Get in touch with us today to find out more about us and what we can do for you.