Multifamily Real Estate Investment Basics, part 1 of a series

Apartment Investors Return...In Surprising Numbers!There’s no doubt that improvements in the long term fundamentals for multifamily investments have made them the darlings of commercial real estate.  I was talking yesterday  with a researcher at REIS, one of the nation’s most respected real estate tracking firms.  His company is predicting the  East Portland and Gresham submarkets apartment values to increase by a minimum of 4% a year for years to come.  To my delight Portland multifamily investments are starting to thrive.  But it goes much further than that. I’ve recently been contacted by several investors who have been notably successful in other investment arenas who are looking at multifamily as a vehicle for future equity expansion. One felt that it would be hard to maintain the pace of growth he had enjoyed in the stock market and was looking for another venue.  I think the stability of

Rose City Commercial Real Estate works with first timers and seasoned institutional investors.  Two reminders.   First, if you want to be a genius in 5 years make smart multifamily investments now.  Second, you’re in no danger of profiting until you take action.  Call 503.577.1034 to develop a customized investment plan that meets your needs.

multifamily was enticing as well.  I often tell people that real estate never went down by a trillion dollars in twenty minutes like it did May 6th of 2010…but I digress.  Another investor who was heavily invested in bonds asked me for some guidance on what he could expect from multifamily investments.  He was concerned that his current yield of 2.95% (annually, not monthly)  would more than be eaten up between taxes and inflation.

I realize that these are just two datapoints…but I think they are emblematic of a trend I have been expecting for some time.  There’s something like $6 trillion in IRAs and 401Ks…and much of it can be used for real estate investing without creating a taxable event. Yes, its important to have the proper professional advice to prevent constructive reciept of the funds.  These new multifamily investors are savvy businessmen and women, but they have not been thoroughly exposed to multifamily investment fundamentals.  In order to give them the service they deserve I plan on reviewing real estate investing fundamentals over the next few posts, with a focus on apartments.

NEXT: When to buy from a historical perspective.

More posts in our Timing Your Multifamily Investment Series:

 

 

Other articles you may like:

 

The Importance of Due Diligence in Multifamily Profits – Phase II – Books and Records | Rose City Commercial Real Estate

Demystifying multifamily cap rates, NOI, and investing basics | Rose City Commercial Real Estate

Multifamily real estate investment basics – part 1 of a series | Rose City Commercial Real Estate

Attractive cap rates attract investors to multifamily properties in Portland | Rose City Commercial Real Estate

Prospects for multifamily sector improve greatly | Rose City Commercial Real Estate

 

Comments

4 Responses to “Multifamily Real Estate Investment Basics, part 1 of a series”
  1. D. Lindahl says:

    I’m looking forward to your series. Multifamily is really where its at!!

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