People who invest in multifamily real estate benefitfrom steady, predictable cash flow that is returned to investors.
The stock market is prone to dramatic ebbs and flows.Multifamily real estate is significantly more stable. It has a lowcorrelation with the stock market and continues to perform welldespite other economic turmoil.
Investing in multifamily real estate is a great way to diversify portfolio away from more traditional stocks, bonds, and equities. Multifamily investors can invest in various asset classes (Class A, B, or C multifamily) and multiple geographies. Passive investors can also invest alongside different sponsors who oversee managing and operating the asset, allowing for further diversification.
Multifamily real estate performs exceptionally well in an inflationary environment. This is because most owners utilize fixed-rate debt. Therefore, they can keep costs low while increasing rent annually as inflation rises.
While no asset is genuinely recession-proof, multifamily property tends to be recession resilient. This is because people always need somewhere to live, regardless of economic conditions. Moreover, in extreme situations, like the aftermath of the 2008-2010 Global Financial Crisis, home owners may be forced to sell their homes. When that happens, they often move into rental housing, often for extended periods.
Cap rates are an indication of property value and are generally correlated with returns—the higher the cap rate, the higher the potential returns (and vice versa). In a low-cap rate environment, property values tend to be high. Properties trading at higher cap rates are sometimes more affordable but may be considered higher risk investments for various reasons.
Real estate syndication is the pooling of money from investors that will be used to buy large Multifamily apartment complex. Typically, this involves active investors of Floriano who engage actively managed the deal and passive investors who invest their money into the deal so when you invest with us you have ownership in the property receive cash distributions and build equity without any management responsibilities.
We break down the barrier to the best deals and get you the benefits of ownership without managing tenants.
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