Are you aware that we are in a financial crisis? The average multifamily cap rates rose to around 7.5 percent. This causes an increase in average annual rents and relatively low volatility. What does this mean for you as the investor? At Luxe Crowdfunding we are here to help you and inform you of the appeal of multifamily properties. We are pros when it comes to CRE crowdfunding? You can count on us when it comes to real estate investment opportunities.
Why is Multifamily So Special?
While each asset class comes with its own risks and rewards, multifamily offers compelling advantages for both individual and institutional investors.
- Baseline Level of Demand: Regardless of the state of the economy, people need a place to hang their hats. This creates a baseline level of demand for most multifamily assets. According to Yardi, the national occupancy rate for stabilized multifamily assets closed out 2017 at just over 95%.
- Diversified Cash Flow: Multifamily properties produce monthly rents, with the risk of default spread among multiple tenants. A single tenant represents a relatively small percentage of overall income, and minor changes in occupancy should not significantly affect cash flow.
- Economies of Scale: Overall management and maintenance costs are more efficiently shared within multifamily properties. When multiple units are located under one roof, certain operational costs—like those relating to security or overall upkeep—are reduced.
- Diverse Financing Options: A number of financing options exist for multifamily developments, including loans from government-sponsored enterprises like Freddie Mac and Fannie Mae. These programs enhance the availability and reduce the cost of credit for qualifying multifamily projects, increasing the efficiency of the capital markets for such housing developments.
- Less Competition: Due to higher barriers to entry, including overall higher sales prices, multifamily properties are often less popular among investors than single-family homes. This limited competition can make it easier to find high-quality assets in the space.
We Are The Best When It Comes To CRE Crowdfunding
We seek to generate outsized risk-adjusted returns by leveraging our experience, market analysis and proprietary network of relationships. As one of the top real estate crowdfunding sites, we have years of experience to help you succeed. We focus on opportunistic ground-up and value-add developments in six MSA’s (Chicago, Dallas, Denver, Houston, Minneapolis, and Orlando).
Our people combine decades of achievement, reputation, and integrity. Not only are we one of the best real estate crowdfunding sites to help you see big returns, we care about your success!
Contact Us Today
Ask us about CRE crowdfunding for real estate investment opportunities. If you are interested in learning about real estate crowdfunding or even some more details about real estate investing, be sure to call us today! We are experts in real estate ROI. Here at Luxe Crowdfunding, we are entirely here for you. Our investing experts have the best expertise in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We offer the best crowdfunding sites for investors.