There are so many investment choices in the real estate space to pursue, but which one will bring you strong returns, significant tax advantages, greater control and security?
More so than any other real estate class, multi-family properties are arguably the one of the most lucrative real estate investment options.
The plain truth is that apartment complexes generate significant cash flow with even more opportunity to force appreciation and add long-term value over time. Plus, apartments stay in high demand because people need a place to live, and they provide a simple, affordable option for college students, young professionals, singles, older people, low-income workers and temporary residents, demographic segments that will never go away.
When it comes to apartment investing, here are a few keys that successful investors know and have used to unlock the door to significant wealth:
Economies of Scale
Large apartment complexes generally have many units available for rent. This means there are more residences covering your operating costs and mortgage, thereby reducing your investment risk. As the number of units increase and more rental income is collected, the operating cost per unit decreases.
Significant Cash Flow
Apartment complexes we purchase typically multiple units rented out each month. More rental units means more cash flow.
Moreover, a modest rental increase across individual units can result in much higher total cash flow. There’s also security in numbers: even if you have a 5% vacancy rate on a 50 unit complex, your bottom line is affected less than it would be in a vacant rental house.
Like most investments, you have to pay taxes on apartment complexes; however, it’s possible to decrease or eliminate the amount of taxable income through tax depreciation.
In some cases, the tax depreciation expense could completely eliminate the annual taxable income.
Forced Appreciation Equals Huge Profits
With apartment investing, you can maximize the value of your investment and create equity by raising rents, reducing expenses, increasing occupancy, and making strategic value-add improvements.
These actions will add value to the property and increase the selling price when it comes time to extract value from the property upon exit.
One of the Best Investment Vehicles
Apartments are always in demand, are a good hedge against inflation, and offer greater control to investors.
We invest in stable markets
Strong Track Record
Over 20 years of investing experience
We include replacement reserves and secure long-term debt
Communication and Transparency
Available to answer any questions or concerns you have about an investment. Once we close, we provide regular reports to you so you know exactly what’s going on at any given time. We’re there if you need to contact us.
Apartment Investing Made Easy with Upstate Investors Group
Upstate Investors Group creates real estate syndications by pooling capital to acquire multi-family apartment complexes that meet our criteria.
Founded on the principal of building wealth for others, we provide unique investment opportunities in which our investors have the ability to generate wealth and cash flow through real estate.
We focus on specific types of properties due to their location, stability in various economic conditions, and history of cash flow. We put our efforts toward acquiring and managing these types of properties so our investors reap significant investment returns.
If you’re ready to start investing with Upstate Investors Group, click “Start Here” below, and you’ll be on your way toward building wealth for your portfolio.
Why invest with Upstate Investors Group?
20 Years of Experience
Over 20 years of successfully investing in multifamily properties
Grow your Wealth
By investing in multifamily apartment buildings you have the ability to achieve better returns than the stock market
You’re in Control
We give you a high degree of control by allowing you as the limited partner a vote on matters such as selling the asset
How does a syndicated deal work?
Real estate syndication is a simple transaction between a Sponsor and a group of investors.
Real estate syndication is a way for investors to pool their financial resources to invest in properties much bigger than they could afford on their own.
The Sponsor invests the sweat equity, including scouting out the property, raising funds and acquiring and managing the investment property’s day-to-day operations, while the investors provide most of the financial equity.
Syndications are usually structured as a Limited Liability Company or a Limited Partnership with the Sponsor participating as the General Partner or Manager and the investors participating as limited partners or passive members.
The rights of the Sponsor and Investors, including rights to distributions, voting rights, and the Sponsor’s rights to fees for managing the investment, are set forth in the LLC operating Agreement or LP Partnership Agreement.
Investors make money when participating in a real estate syndication from rental income and property appreciation.
Rental income from a syndicated property is distributed to investors from the Sponsor according to preset terms. Investors can net higher rents and earn larger profits when the property is sold.
Everyone who invests receives some share of the profits.
The Sponsor may earn an acquisition fee.
Money is distributed between the Sponsor and the investors based on the syndication’s profit split structure.
Sponsors usually refinance the asset to return capital to the investors. This reduces the investors downside risk and increases their rate of return.
Experience – Integrity