5 Things to love about Commercial Real Estate Investing: Multifamily residential properties
When I entered the commercial real estate investing scenery, I didn’t know where to start but I did know that focus was going to be very important. In addition, it had to align with my short term and long term goals. Therefore, I did research on the different types of commercial estate and Multifamily stood out to me.
Below are some of the benefits and aspects of MFR any investor or potential investor should consider:
· Multiple income streams – the “clustering” of units under one roof affords you the advantages of redundant sources of income, while only managing/overseeing one building; this is distinctly advantageous over SFRs, where you must manage one building for every one income stream. On the subject of income, consider that per-square-foot rents for apartments rose 46% from 2010 to the present, evidence of the national trend towards renting and away from home-buying.
· Portfolio scaling – allows you to quickly scale a real estate investment portfolio in very short order, versus accumulating SFRS one at a time. Compare the two approaches: for MFR, one deal analysis, one inspection, one closing; in contrast to multiple SFR units, each with its own analysis, inspection, closing and so forth.
· Property management – MFR properties leverage economies of scale and create efficiencies within your portfolio, such as with property management; your team can focus on one location (or a few), versus SFRs that are geographically dispersed, perhaps even requiring multiple property management companies to cover them.
· Maintenance – expenses are concentrated in one structure. Central infrastructure repairs benefit all units simultaneously. Your maintenance team can focus on the one location, improving response times and streamlining your operations.
· Vacancies – MFRs are not as sensitive to vacancies as SFR portfolios. The impact from a percentage of empty units is distributed across the remaining units, which can continue to support the recurring expenses of management fees, maintenance, insurance and taxes. Further, apartment vacancy rates are experiencing a downward trend (3.6% decline) over the last decade – again, a reflection of the increasing emphasis on renting over buying.
Reynaldo Santana, a 10 year business development tech guru in the emerging tech sector now looks to create a bigger impact by using his entrepreneur experiences and knowledge to help rebuild this economy with those interested in partnering and building it together. Santana is now actively involved now in identifying, assessing, analyzing and acquiring properties. His specialty is in the commercial sector, where he brings focused expertise under the direction of his personal coach Peter Harris. A leading expert in the field of commercial real estate investing in United States, Peter Harris is author of the best selling Commercial Real Estate book of all time, Commercial Real Estate Investing for Dummies. He also co-authored with Donald Trump the audio program Three Master Secrets of Real Estate Success. His latest release, Commercial Real Estate for Beginners is a #1 best seller on Amazon. and experience.
If you who would like to join me in my journey to rebuild the economy via Commercial Real Estate, please reach out and let’s have a conversation. I look forward together to create jobs, apartment buildings, rebuild shopping centers, rescue commercial owners and more.