One of the best actions you can take in real estate to mitigate your losses is portfolio diversification; this also goes, of course, for investments in general. If you truly wish to super-charge your folder, then you should strongly consider multifamily property investment. There are several ways to accomplish this, in fact: one way is to invest in income-producing real estate properties; another is to build both commercial and residential properties, yourself, and sell them for a big profit. A third way is an amalgamation of both. Let’s dive in a little more to see what multifamily property investment has to offer.
Multifamily Property Investment Is Easier to Finance
As a beginner, it may seem formidable to dive right into multifamily property investment; however – it is sometimes even easier than residential real estate. The strategy entails lining up your chips so that you can secure the finances; somewhat paradoxically, it is more costly in total, but easier to finance multifamily properties. Historically, banks have been more willing to finance apartment complexes and the like over single-family residences – because they know the former has a much bigger ability to bring in funds due to the plenitude of units. In short, a single-family residence can very easily be 100% vacant; whereas a multifamily property would be very difficult to be the same.
The Size of Your Portfolio Increases Quickly
The reason for this is obvious: since multifamily property investment entails the acquisition of multiple rental properties in “one-shot”; your portfolio is immediately increased and diversified when you enter this investment realm. The ease of business is also a selling point since you only need to deal with a single seller when seeking to acquire a rental property with 30 units (for example); instead of 30 different sellers for the same number of single-family residential properties.
The above is just the tip of the iceberg when it comes to multifamily property investment; for more information, don’t hesitate to contact Crimson Stone Capital Solutions.