Real estate investment, specifically multifamily, is the most resilient in today's macroeconomic climate. Characterized by short-duration leases, multifamily assets provide the highest level of inflation protection, as they allow asset owners to adjust rents quickly to compensate for inflation.
Staying attuned to Treasury rates and borrowing costs can be key to successful multifamily acquisitions during periods of inflation, as loan spreads can actually be reduced during those times. Additionally, understanding the economic environment and the geographic market of a targeted region before developing investment strategies will also be essential for the efficiency of the venture.
When examining multifamily capitalization rates and 10-year US Treasury rates, multifamily assets have shown a great potential for profitability in a rising rate environment. By implementing a prudent vertically integrated investment approach, a multifamily portfolio can be built to defy all economic cycles and provide outsized returns.
If you want to know more about how to maximize returns on multifamily investments during periods of inflation, read the full article in: FA MAG
A Fresh Look Brings this Dated Property Back to Life
Now, this is what adding value to a property really looks like! Milagro is a Class C property located in Fort Worth, Texas, that Multifamily Empire acquired in 2021. This asset, when bought, presented a substantial earning opportunity because there were so many potential upgrades to be done. After many exterior structural renovations, we finally changed the outdated red color. We painted the home with fresh shades of gray, giving the property a much more elegant and modern look.
In value-add properties like this, the look and curb appeal of the asset is essential to the investment appreciation. By making these renovations, we can bump up rent prices while also increasing the property's value, giving us the returns to pay our investors.
After updating the aesthetics, our next step is to rebrand the property. Milagro will no longer use this dated name and logo. Our marketing experts are working on something exciting and new that will drive future residents' desire to live on this modern property!
"Hello, With great satisfaction, we are announcing the launch of our brand new communication platform. We are now offering a monthly newsletter loaded full of interesting topics about the Multifamily Empire and the Multifamily Investment Market. Our main goals are to educate our readers, show transparency with our properties, and help others on their journey of multi-home investments. Each month we will touch on relevant topics that will help you navigate the complicated world of real estate investments. Plus, we would love to hear about any themes you would like to see in our newsletter so we can give our readers what they want. At EMPIRE, we operate with specific values: transparency, results, hard work, and care for our community. If you have any suggestions or questions, please don't hesitate to reach out at <email address>. We hope you like it! - Delia and Neander Lima
It has been our pleasure and privilege to have Neander and Delia as General Partners in Enclave on Pioneer. More than GPs, they make us feel like family. Their enthusiasm is infectious, and their professionalism is unparalleled. They make asset management look easy!
We admire their exceptional work with property management and maintenance as they expertly execute the business plan. Delia is brilliant with accounting, Capex, and renovations. Her business acumen and organization keep employees and contractors on task and moving toward timely accomplishment. Neander's unique creativity and exemplary vision allow him to first assemble and then focus on the big picture. Perhaps most admirable is their ability to work alongside one another while serving others.
It is enjoyable to watch their properties blossom. As seasoned syndicators and experienced asset managers, they are improving communities and positively impacting the lives of their residents and investors.
Rebecca Moore & Warren Buller
Attending events and meetups is one of the best ways to become a better real estate investor. A great platform that we highly recommend for finding local gatherings is www.meetup.com. There you could, for example, find the "Jazz N' Apartments" group and interact with our community, as well as many other great ones.
When passively investing in a deal, trusting the sponsor team is even more important than analyzing all the property details. They are the ones who are underwriting and will manage your investment. So, it's vital to choose people you know and trust who have a solid track record and have been doing a stellar job on past deals.
It is common knowledge that investing in multifamily properties yields a lot of tax benefits. However, each individual has a specific situation regarding taxes, so before you make any investment decision expecting to get the benefits, we highly recommend you consult a CPA or a tax expert for tax assistance.
