As the old saying goes, “work smarter, not harder”. The payoff is often much better when you lead with a strategy and play to your strengths. The same is true for investments. It’s the investor’s use of their time that greatly affects how soon and how effectively they’ll reach their goals. That’s why many investors opt to partner with professionals in Real Estate.
Through passive investments, they enjoy the yields of well-managed assets without the day-to-day burden of investment. The benefits of passive investments become even more pronounced in Multifamily Real Estate where multiple units and tenants are concerned.
Read on to find out the many ways passive investors get more from their multifamily investment:
1. Fewer Losses from Trial & Error
Working with professionals means tapping into a wealth of knowledge and experience. Your investment stands to benefit from being managed by established players who can leverage their network, expertise, and familiarity with the market to deliver better results.
While all investors are welcome to discover the market on their own, this could come at a steep (sometimes even fatal) price for their investments. Simply put, Passive Multifamily Real Estate Investing would mean fewer mistakes and fewer losses from those mistakes.
2. Better Properties, Better Income
Multifamily investment firms have better access to financing. This means having the capacity to source funds to secure more competitive properties. Professionals also tend to negotiate more favorable terms for their investments which results in better overall profit. This is on top of having a team that’s always looking out for the next big property investment opportunity.
Established firms in Real Estate operate with tax efficiency always in mind. If applied properly, tax incentives can be highly-effective strategies to help grow your wealth and investments.
For example, an investor can put off paying capital gains taxes on a profitable investment by using a specialized type of transaction known as a 1031 exchange. There is no time limit on these exchanges, and they can be done over and over again. This means that capital can grow tax-free and taxes can be put off indefinitely.
Do investors enjoy more benefits from Passive Multifamily Real Estate Investments? Yes. With more people in your corner (and professionals at that!) working to secure the best returns for your investment, the faster you get to your goals.
If you need help with real estate passive investment in Texas, reach out to
As a leader in multifamily investment in Houston, Texas, we ensure that you’ll enjoy the full benefits of passive investments and be well-positioned to weather the market fluctuations.