Why is ‘value add’ so important when real estate investing during a recession or downturn?
When a recession hits, and interest rates rise, the cost of goods and services go up, and over time, this reduces the value of money. So you can buy less for the same money. Real estate is often considered one smart way to offset the effects of inflation. Here are a few reasons why: 1. Rental Income Growth: Inflation is often accompanied by rising rent growth, which works in favor of multi-family investors and owners. As the general price level increases, property owners can adjust their rental prices accordingly, boosting their cash flow and overall returns for investors. 2. Fixed-Rate ...
Multi-Family Real Estate as a ‘Hedge’ Against Inflation?
As we are all aware, inflation can erode the purchasing power of money over time, leading to a decrease in the value of traditional investments like stocks and bonds. There is no perfect way around inflation; however, multi-family real estate has shown over the years to be a comparatively resilient asset class in times of rising prices. Here are a few reasons why: Rental Income Growth: Inflation is often accompanied by rising rent growth, which works in favor of multi-family investors and owners. As the general price level increases, property owners can adjust their rental prices accordingly, boosting their cash ...
Is Wall Street Gearing up for Real Estate Bargains?
In this week’s financial news, an article from The Wall Street Journal* titled “Wall Street Is Ready to Scoop Up Commercial Real Estate on the Cheap” struck a chord with us. That’s a bold statement, but it’s a telling one also. The article mentioned that many funds and institutions on Wall Street are raising capital now to the tune of $Billions in preparation to purchase quality real estate at discounted prices. But this isn't the first time Wall Street has prepared in this way. Remember, in 2008, according to this SeekingAlpha article, most commercial real estate value was down by ...
A Blackstone Investment Strategy You Can Use
Blackstone, a towering force in the field of alternative asset management, ranks among the globe's biggest investors in Real Estate. According to their website, they have a real estate AUM (Assets Under Management) of $585 Billion.* That's an eye-watering number, no doubt! Their vast real estate holdings stretch worldwide, but what catches the eye is the substantial portion of their portfolio invested in the Multi-Family sector. This is no random choice, as there are compelling reasons behind it that make Multi-Family attractive to institutional investors. If investing in Multi-Family properties makes sense for the world's leading asset manager, why shouldn't it ...
Unleashing the Power of Real Estate Investing with CalTier
Real estate investing has long been regarded by many as a way to build wealth because it can provide consistent cash flow and long-term upside. However, historically, only accredited investors with significant amounts of capital had access to the best opportunities in this market. However, CalTier has changed the game and blown open the door for retail investors to get involved. CalTier opens the diversification door to everyone When attempting to invest in real estate, non-accredited investors frequently face significant obstacles, ranging from high minimum investments to access and knowledge of what is often complicated transactions. CalTier has removed these ...
An eye on Multi-Family
Family Offices manage much of the world’s wealthiest families’ money. Many family offices have sophisticated analysts and investment teams experienced in the financial markets, so it’s interesting to see how they invest and which markets they are considering going into. In this recent report by Goldman Sachs “Eyes on the Horizon - Family Office Insights” they report some very interesting stats: Of the 166 family offices polled, 30% said they want to focus on residential/multi-family real estate for their client portfolios over the next 12 months.* The report also states: “We have seen a particular focus on multifamily residential, which ...
