Why Multi-Family Investing Is Better Than Single-Family Investing
As we continue to grow our multi family investment portfolio and create passive income for our investors we thought it would be worthwhile to discuss why it is that we have focused on multi family real estate investing over single family residential. Our journey into multi family investing is similar to many others out there perhaps so it is likely that you are researching for yourself which direction to take as well. There can be many personal reasons to disagree with any of the following points and unique situations that may refute our analysis particularly but overall we hope that you find the discussion illuminating. Our goal with all our content is to build your familiarity, connect with you, and help foster a community that grows and does better together. So we encourage you to let us know your thoughts and join us in the discussion over at our Facebook page!
Recurring cashflow vs one time paydays
The concept of recurring cashflow is the paramount consideration in our analysis here. This may seem obvious to some of you depending on how far down the research funnel you are but overall we think it is important to highlight this idea directly and early on.
You may have noticed this trend throughout your modern life actually. Think about the biggest brands and services out there right now. Now think about whether or not they have a mechanism to get your to buy into them more often. Most likely you’ve been able to think of some examples of this. If you take technology you can look at Apple’s most recent iPhone release which tech experts are acknowledging disrupts the high end phone market to deliver a lower cost phone on par spec wise than competitors… but Apple’s play is to get you to buy into their tv, storage, and other services. Think about groceries now… we bet you the grocery stores around you offer delivery and pick up services via their own app. Think about the dental office… do they have an inhouse dental plan that covers many basics to encourage you to visit more often? Each time you interact with these services your are more likely to add cash into the business. Over an aggregate that business now how more small payments throughout the time period to which in aggregate is more revenue overall.
Better planning and projections
Most businesses would tell you that cashflow is a major headache for their business development planning and implementation. Forecasting revenue can be difficult when you have only sporadic or a few expected periods of sales. If you could find a way to generate revenue more often and more regularly then you would have a real competitive advantage. You could invest in areas more frequently and with more confidence. This would also mean others would be more likely to invest in you and your business as well.
Single family real estate isn’t reliable
As our guest on our Next Level American Dream Podcast, Leigh Cowden, explained single family real estate may offer some lower barrier to entries but when viewed as a business plan, it is not as reliable as multi family or commercial real estate. Depending on what you’re doing with the single family property you either are receiving the sale profit in a flip or equity gains or if you renting you are exposed to risk in losing a single tenant. This show that single family real estate is either non-recurring revenue or volatile recurring revenue.
Leigh explained that she came to realize that the best pathway towards financial freedom and reliable cashflow is through multi family and commercial real estate investing. As you become more familiar and adept at multi family real estate investing you can begin to acquire and manage and show profits on larger or more complex properties.
Multi Family Investing for investment cashflow
Thomson Multi Family Group has developed the expertise needed to make multi family investment a reliable and profitable cashflow endeavor. We offer investors the opportunity to take advantage of the lessons learned by ourselves and professionals like Leigh and invest in real estate that provides a reliable strong ROI.
Our apartment and multi family properties are managed by property management companies that keep the vacancy rates down, the maintenance costs low, and the residents happy. Coupled with our investment strategies we are able to deliver recurring payments to our investors that they couldn’t achieve through other conventional investment vehicles. Yes, it take quite a bit more finesse and expertise to successfully invest in multi family properties but that is why groups like ours exist. We seek the investors that want to participate in creating financial freedom through great investment returns to achieve the reliability and positive that a regular cashflow can bring.