Summary: Today we’re looking at two different real estate investment strategies: single family home rentals and apartment syndication. Which asset offers the best returns, lowest risks, and most valuable benefits? Dive in to find out!
You know what’s great about real estate investing?
Well, of course that’s a trick question…because there are TONS of reasons why it’s great. 😉😉
But the first thing that comes to mind is that real estate stands the test of time. It’s been around for hundreds of years, and it will stick around for hundreds more!
And by investing in such a reliable asset, you’re truly setting yourself up for a bright and secure future. We, the Kitti Sisters, are definitely fans of real estate investing – if you haven’t noticed. Butttt we’re not the only ones!
Not even close.
Check out what Andrew Carnegie (one of the wealthiest industrialists ever) had to say about real estate investing:
“90% of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
This is hiiiiigh praise for the real estate game. And we’d say it’s a pretty reliable source, with Carnegie being a crazy successful billionaire and all.
We love real estate investing because it’s stable, goes where inflation goes, generates passive income, and creates generational wealth. Plus, there’s no cap to your earning potential with real estate! 🤩🤩
So, the question really isn’t whether or not you should invest in real estate. The question is HOW should you invest in real estate?
You have options!
Today we’re looking at the differences between investing in apartment syndication vs. single-family home rentals. Both have benefits, rewards, and risks – but we’ll talk you through both sides to see what fits your goals and lifestyle.
Ready? Here’s what’s in store:
- Financial benefits of passive investing through apartment syndication
- Okay, cool…but what kind of risks are we looking at?
- Syndication also offers excellent tax perks for investors
- Now let’s take a deeper look at single-family home rentals to compare
- How to get started creating passive income ASAP
Financial benefits of passive investing through apartment syndication
There’s no secret here – we LOVE passive investing through apartment syndication. We really couldn’t hide that fact if we tried.
But also, why would we want to hide it?
We’d rather loudly share alllll about the amazing benefits of passive investing for everyone to hear! 🙌
So, let’s discuss the main financial benefits of investing in apartment syndication. Because the monetary reward is kind of an important factor when it comes to investing your hard-earned cash.
First off, apartment syndication allows you to invest as part of a group. This means that you automatically have access to bigger deals than you could get into on your own. Plus, as a passive investor, you have a highly skilled team of professionals putting your money to work while you enjoy your life.
Big rewards AND less work?
Yep, like we said…syndication is ahmaaaaazing. But hang on. There’s, even MORE, to love about it.
The returns for apartment syndication are better than other types of investments. Look at the stock market, for example. The average return over the last 15 years is about 7.04%. That’s fine. But take out all the taxes and add inflation and you’re walking away with more like 2.5%.
Now, compare that to the 14% and above-annualized returns of apartment syndication. 😍😍
You don’t have to be a math whiz to know which investment is better for your bottom line. Apartment syndication wins every time!
Okay, cool…but what kind of risks are we looking at?
Everything worth doing comes with some risks. It’s all about knowing which risks are less risky than other risks – if you know what we mean.
Apartment syndication has significantly less risk than other investment styles. One of the reasons why is that you’re investing in apartment buildings, which fall under the basic needs category.
There will ALWAYS be a need for housing and shelter, which makes apartments a pretty solid investment choice.
Apartment syndication also helps you hedge against inflation while recession-proofing your wealth. Remember when the housing bubble popped in 2008? Single-family home loan delinquency rates hit 4%, while multifamily loans peaked at 0.4%.
That’s a BIG difference when you’re trying to protect and grow your wealth. 😏😏
So, honestly…while risks are there, they are VERY minimal compared to other investments. And the benefits far outweigh the risks.
Syndication also offers excellent tax perks for investors
Now, you might be thinking we’ve given enough reasons to support our love of apartment syndication. Butttt there’s still more to be said.
Taxes take quite a toll on some investment assets. Which can be totally frustrating. Imagine making a bunch of money through seemingly successful investments, and then having to give most of it up when taxes roll around.
Is investing even worth it at that point?
Well, with apartment syndication, the answer is yes. And this is one of the very best benefits so far. You see, the government offers rewards to those who invest in producing for the economy – as opposed to just consuming.
Soooo, as an apartment syndication passive investor, your income is taxed at a much lower rate than other investments. That’s called bonus depreciation.
👉 In some cases, you can offset your other income with your investment income, lowering or even canceling out the taxes you owe!
Saving tons in taxes goes a long, long way in securing your future and growing your wealth. Ready for the recap?
Apartment syndication saves money in taxes, passively puts your money to work for you, lowers your risk while raising possible returns, AND protects your wealth against economic downturns. ✨
Like we said…there’s nothing quite like passive investing through apartment syndication.
Now let’s take a deeper look at single-family home rentals to compare
We could talk all day about apartment syndication. But did you know that we started out our own investment journey in single-family home rentals? From experience, we can honestly say that it’s a fine and honorable way to get into real estate investing and grow wealth over time.
By owning a 🏡 single-family home rental, you can create positive cash flow when the tenants pay you rent – decreasing the loan amount and raising the value of the property.
But this investment style also comes with a bit more risk and liability.
You see, if tenants don’t reliably pay rent, YOU are the one who has to come up with that money. Plus, you’re also responsible for everything that could go wrong on the property, like unexpected damage, repairs, or sudden vacancies.
There’s just a bit more effort involved with owning and renting out properties than simply investing your money into them.
If you’re okay with higher risk and being responsible for managing the property, renting out single-family homes is a fine option for real estate investing. Buttt if you’re looking for a low-risk alternative that frees up your time and offers tons of financial benefits?
Well, then your best bet is absolutely apartment syndication. 👌
How to get started creating passive income ASAP
Okay, we couldn’t possibly get you all excited about passive investing and then just send you on your merry way. OF COURSE, we’ve got an exciting way for you to get into the apartment syndication 🏢 action rrrrright now.
If you are ready to access all the benefits of real estate investing WITHOUT ever lifting a hammer or sacrificing your time…the hands-off, passive income route is for you.
The Kitti Freedom Club offers you tons of support, resources, and opportunities to invest in aaaawesome apartment syndication deals! You don’t have to do any of this alone. We want to be here for you every step of the way. 🤝
Start putting your money to work so you can stop sacrificing your time and freedom.
GET ME ON THE KITTI FREEDOM CLUB
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