Halloween is just around the corner!
I recently read a figure that was beyond scary – it was downright frightening. According to a survey done by the Federal Reserve in August 2014, only ¼ of Americans feel financially prepared for retirement.
The recent volatility in the market makes me feel stronger than ever that there must be diversity in every portfolio. The beauty of investing in apartments is that you have a measure of control of your financial destiny.
The beauty of apartments:
- You can invest in apartments part-time
- ONE deal can put you on a path to financial freedom
- You can build equity for the future while collecting cash flow today
Sooner or later inflation will kick in, regardless of how many dollars are printed, and real estate is an excellent hedge against inflation. There are also great tax advantages of multifamily real estate, (click the link for a more thorough explanation).
I warn against the “park and pray” mentality. I’m guilty of it myself, getting my retirement account statement, glancing at it and sliding it in the drawer, “praying” that when it’s time for me to retire, the market will be there for me. That’s why I personally believe in investing in apartments. It is a fundamental based strategy, supported by real demographic numbers.
Who is renting apartments?
- Baby Boomers that want an easier lifestyle
- Milliennials that don’t want more debt than their student loans
- The foreclosure forced many out of homes and into apartments
According to Marcus and Millichap, a nationally recognized commercial real estate firm, even with multifamily construction booming and 215,000 units coming online in 2014, new inventory will not outpace demand going forward. Vacancy remains extremely tight.
Not every market is strong, and you must have a system in place to decipher a strong location from a weak one. There are basic demographics that must be reviewed to be sure that the fundamentals are present to go forward with sourcing deals.
The “Hottest” market is NOT always the smart play. Live where you like, invest where it makes sense.
Don’t be one of the QUARTER of the population that isn’t prepared for the transition to retirement. Investing in multifamily real estate can truly alter the financial path you’re on for good.
Make sure that the scares that you get this Halloween season are from the kids in your neighborhood, and not fears of the future. You can grab your Market Research Guidebook by entering your info above – this free guide offers a step-by-step approach needed to evaluate trends and understand key factors when determining where to invest.
Have a Happy and SAFE Halloween!