Learn the ways a multifamily investment can generate good cash flow and increase your wealth over time.
With multifamily property investments, you have the potential to benefit from not one, not two, not three, but four sources of revenue that contribute to your ROI.
In this article, I’m going to cut right to the chase and break down the four sources of returns associated with multifamily real estate investments. Buckle up.
If it’s cash flow you’re after, commercial real estate is a pretty attractive option, and multifamily properties are arguably the strongest investment.
A quality, well-managed, strategically located multifamily property provides a steady stream of cash in the form of rental income. I’ll quickly run over how to calculate the cash returns generated from your multifamily investment. Start by multiplying the monthly rent per unit by the number of units to get the gross monthly cash flow. Then, take that...
Long before the COVID-19 crisis swept the globe, we urged our friends, family and Alliance members to invest in farmland.
Sure, when we first published our article on the top five reasons to invest in farmland back in early January 2020, we couldn’t have imagined the economic upheaval the looming global pandemic would cause.
After all, it was before China’s decision to shut down cities with millions of people. It was before WHO declared the coronavirus outbreak a pandemic. It was before our societies were brought to a standstill and our rates of unemployment soared.
What we did know, even back then, is that pandemic or not, farmland is and likely always will be a safe and reliable asset class. It was true during those rosy pre-pandemic days of (comparative) economic stability, and it’s true now that the global economy has taken a nosedive.
But hey, we’re not here to say, “We told you so” (even though we did)....
If you’re a typical investor today, now holding 70-100% of your invested capital in the stock market, then you’ve got nerves of steel or total blinders on or both. I admit the seemingly endless upward climb of the market does light up the “easy money” greed button in most of us that's hard to resist.
But, in your gut, you may also have a growing anxiety that most of these gains are not based on anything real in terms of business fundamentals; rather, they're driven by media hype, emotional sentiment, and Fed buying behind the scenes. That’s a recipe for a house of cards that can topple on a whim, as we often experience when corrections occur.
You see, often things that seem alluring and lucrative on the surface are something altogether different when you take a closer look. Like a poorly laid foundation, the tell is in the cracks and crevices (in this case, in the spreadsheets). So, let’s get out our magnifying glass and take a...