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Using The Cap Rate to Determine The Strength Of A Market
What is a cap rate and how is it calculated? The cap rate is short for capitalization rate. The cap […]
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Property Management Economies of Scale
A Shared Vision As operators of large multifamily assets, we rely on third-party property managers to execute our vision. It […]
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Investment Philosophy
Short-term or Long-term Investments right now… What’s Best for You? A few investors recently reached out to discuss various investment […]
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What is an accredited investor?
An accredited investor has either a net worth of $1mil, not including their primary residence, OR an annual income of […]
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PassiveInvesting.com takes a gigantic step in increasing investor satisfaction (and profits)
PassiveInvesting.com continually looks for ways to deliver a better return for our investors (and a better experience for our residents) […]
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What Due Diligence Looks Like Post-COVID-19
In an article published in May, I outlined what due diligence comprises. Today I will update you with some changes […]
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Understanding Preferred Returns
What is a Preferred Return? A preferred return is a minimum return that you would receive before the operator would […]
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The Importance of Understanding Capital Stack Structures for Apartment Syndication
What is a Capital Stack? A capital stack consists of the total capital invested in the project. For multifamily real […]
Popular Questions
Investing in multifamily assets allows for better returns than any other real estate asset class. The National Multifamily Housing Council (NMHC) presented the research on why multifamily investing returns can’t be beat.
One of the major benefits of investing in stabilized (above 90% occupancy) multifamily assets, is the ability to use permanent, low risk agency financing. Looking back at the crash in 2008, the single family market had a 4.0% default rate versus the multifamily market only have a 0.4% default rate.
The PassiveInvesting.com Team only acquires stabilized (above 90% occupancy) and cash flow positive apartment building investments. This allows our investors to make healthy returns while showing a loss at the end of every year.
Since its peak in the mid-2000s (see graph below), home ownership has been significantly dropping and it will continue to drop as millennials and the aging baby boomers want to stay mobile in the 21st century.