Why Invest?

Invest in Multifamily - Better Returns Than the Stock Market!

From March 31, 2006, through March 31, 2016; REIT returns outpaced stock returns over exactly half of the available 10-year periods. But exchange-traded Equity REIT returns were much more dependable than stock returns: REIT returns over 10-year periods usually averaged between +10.0% and +13.3% per year and never fell short of +3.43% per year—even during the 10-year periods that included the liquidity crisis of 2008 to 2009—while stock returns were much more uncertain, usually averaging between +7.9% and +15.0% per year and actually going negative (by as much as -2.72% per year) during 17 periods that included the liquidity crisis.

For more information, see Comparing Average REIT Returns and Stocks Over Long Periods from NAREIT.

Historic Low Delinquency (Even During Last 2007-2010 Recession)

Multifamily investments present a very low-risk profile to investors while providing stable returns.

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the third quarter (compared to the second quarter) were as follows:

• Fannie Mae (60 or more days delinquent): 0.07 percent (a decrease of 0.03 percentage points from Q2-2018)
• Freddie Mac (60 or more days delinquent): 0.01 percent (unchanged from Q2-2018)
• Life company portfolios (60 or more days delinquent): 0.04 percent (an increase of 0.01 percentage points from Q2-2018)
• Banks and Thrifts (90 or more days delinquent): 0.48 percent (a decrease of 0.02 percentage points from Q2-2018)
• CMBS (30 or more days delinquent or in REO): 3.05 percent (a decrease of 0.47 percentage points from Q2-2018)

As you can see above, it is hard to overstate how low these commercial and multifamily mortgage delinquency rates are today.

Only three-one-hundredths of one percent (0.03 percent) of the balance of commercial and multifamily mortgages held by life insurance companies is delinquent, as is one-one-hundredth of one percent (0.01 percent) of the balance of multifamily mortgages held by Freddie Mac. 

The delinquency rate for loans held on bank’s balance sheets is the lowest in the series history.

Unique Tax Advantages

Our goal is to help investors build long-term wealth and passive income streams through a diversified offering of value-add multifamily and commercial investments located in growing markets of the southeast. 

Real estate offers numerous tax advantages over nearly every other investment including stocks, bonds, retail businesses, etc. Multifamily Investors from legal tax avoidance and deferment methods encouraged by the U.S. IRS tax code, including depreciation, cost-segregation, IRS Section-1031 like-kind Exchanges, and tax-free cash-out refinances. Using depreciation, properties can be depreciated over 27.5yrs and taxable net income can be reduced. Using a careful Cost-Segregation study, items such as cabinetry, fixtures, etc. can be depreciated over 7yrs, we can avail greater tax savings from such accelerated depreciation deductions. Also, upon the death of the owner/investor, the Govt assigns a new tax basis as property gets transferred to the heirs and the long-accumulated capital gains disappear.

Hassle Free/Passive Income & Stable Generational Wealth

Passively investing in multifamily is the best way to create passive income so that you can become financially free sooner. We look for quality opportunities where average cash on cash return would be 8-10% over 5 years.

You will receive an interest distribution check every month or quarter, depending on project. It is completely passive as we as sponsors, asset managers and other property might anagers do all the work and maintain the asset and occupancy. Investors are able to invest completely passively and achieve higher than average returns.

We strive for a minimum average annual return of 10-13% in our projects, and frequently the returns are much higher. Investing in multifamily will help you create generational wealth, that will let you retire permanently and pass on wealth to your children.

Our model is to provide distribution checks every month or quarter, depending on the project. It is completely passive as we as sponsors, asset managers and other property managers do all the work and maintain the asset and occupancy. Investors are able to invest completely passively and achieve higher than average returns