Two weeks ago, I shared why multifamily was my real estate investment vehicle of choice. Last week, following discussions with readers and colleagues, I aimed to quell fears about the actual process of investing in this type of real estate. Since then, I’ve continued to receive feedback and questions that made me stop to think about how others who have never invested in multifamily are feeling. You see, I’ve already adjusted my thinking. I’ve already gone through this process several times and am already experiencing first-hand the benefits that come from this type of investment. I’m sold (pun intended).
Change your mind!
However, many people I’ve spoken with have not gone through this process—yet. Their thinking is still solely focused on the path for which they have trained. It can be difficult to change a generations-old ideology programmed by family, profession, and personal history. We study, train, and practice diligently – for years. By God, we’d better put our noses to the grindstone and make use of that effort! This was me at the beginning of my career, and I’m guessing this is probably you to a large degree. So, if my previous blogs on why and how multifamily can change your life and change your mindset didn’t do the trick, I’ll list a few more.
Multifamily is here to stay.
- Housing prices are increasing, and home affordability is decreasing. This leads to an increase in renters.
- Single-family inventory/construction is down, particularly in urban and suburban areas, but the population is increasing. This leads to an increase in renters.
- Hiring rates are slower, decreasing the number of upwardly mobile professionals and those able to afford single-family housing. This leads to an increase in renters.
- People, millennials in particular, are CHOOSING not to own homes to avoid the hassles and cost of home ownership. This leads to an increase in renters.
Notice a common thread among these? As single-family availability, affordability, and desirability decrease, the number of renters, and therefore the need for multifamily properties, increases. Those who invest in it will reap the immediate rewards of cashflow and passive income. In my opinion, it’s a much better projection than that of a standard investment portfolio.
One more point.
This is not necessarily something that should be in done in place of your hard-earned career. Instead, think of it as something to be done in addition to your hard-earned career. That being said, if done right, multifamily investing eventually could allow you to replace your professional income if you choose. And that’s really what it boils down to for me: choice. Creating the income to increase my wealth gives me a choice in my professional and personal life. Choose now so you can choose later!