Rise Capitals Articles To Educate And Inspire

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January 22, 20241 min read

"Investing in multifamily properties isn't just about returns; it's about creating enduring value and community impact."

- Rise Capital

Owning real estate is a business, a landlording business. Rent payments are collected, expenses are paid, and the remainder is profit, just as with nearly all other business models.

But because everyone needs a place to live, real estate has many benefits that other types of businesses do not offer. Most of these benefits are amplified in commercial and especially multifamily real estate.

6 Benefits of real estate investing

copyright 2024 Rise Capital Investments

Risk-Averse Asset Class

  • #1 asset for highest SHARPE Ratio over the last 20+ years

  • Significantly lower default rate in recessions than single family and most other types of commercial real estate

Economies of Scale

  • Lower cost per unit by having more units under one roof

  • Less vacancy risk spread across more units; typical max is 10%

Tax Advantages

  • Cost segregation study for accelerated depreciation

  • Often of $25-40k write off per $100k invested to offset up to all rent income plus up to $25k active income per couple

  • Unlimited depreciation write off for "Real Estate Professionals"

  • Additional benefits for opportunity zones or affordable housing

Ease of Investing

  • IRA & 401(k), qualified retirement custodians, HELOC, 1031, margin loans, cash

  • Entirely passive, no landlord Responsibilities

Above-Average Returns and Cash Flow

  • Projected returns higher than average stock market returns

  • Limited liability while enjoying both and cash flow while still enjoying huge upside

Passive Returns and Communication

  • Monthly Reporting Including Financials and Highlights

  • Receive Monthly Distributions after Stabilization Period

Putting It All Together

There may be a lot of new terminology up there to absorb, so be sure to ask questions in the comments for definitions or expanded explanations. Who knows, your question could turn into a full-length article!

Multifamily Real EstateInvestmentRisk ManagementTax AdvantagesPassive IncomeHigh ReturnsReal Estate Investing
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Emma Powell

Emma Powell is a seasoned commercial real estate investor specializing in multifamily properties. With a strong belief in the importance of knowledge and risk mitigation in investments, Emma has dedicated their career to mastering the art of passive real estate investing. Leveraging various financial tools, such as self-directed IRAs, 401(k)s, 1031 exchanges, dividend-paying whole life insurance, HELOCs, and discretionary income, Emma has successfully built a diverse portfolio while enjoying passive cash flow, tax advantages, and substantial returns.

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