133: How We (Really) Make Money as Passive Investors
APPLE PODCASTS | SPOTIFY
Whether you’re new or you’ve been following us for a while, you’re probably wondering how we actually make money from multifamily apartment investing.
Guess what? We’re going to spill the tea on our favorite mode of investing – 🏢 apartment syndication, and how you can make some serious moolah.
Let’s get into it. 👇🏻
Apartment Syndication
First, let’s pause and get a brief refresher on what apartment syndication is. It’s a pretty cool concept! Basically, a group of investors pools their financial resources together to purchase an apartment building. And get this – if the building isn’t even constructed yet, they’ll figure out a plan for how to complete the project too!
One of the best parts about apartment syndication is that it can be a great option for people who don’t have a ton of capital to invest.
You can still get in on the action and potentially make some money without having to put up a huge amount of money upfront.
It’s definitely worth considering if you’re looking to get into real estate investing! 😍😍
So now that we know what it is, let’s move on to what you really care about – how to make that cash.
Rental Income
✨ The most common way to make money through multifamily apartments is through rental income‼️
Essentially what happens is investors (you, us, and other smart 🍪 cookies out there) rent out individual units within the apartment complex to tenants, and those rent payments provide a steady and predictable source of income for the investors.
Of course, the amount of rental income generated can vary depending on a few different factors.
For example, the size and location of the property, the number of units, and the rental rates in the area all play a role. But overall, it’s a pretty reliable way to make money from real estate investing.
Appreciation
✨ Did you know that multifamily apartments can also appreciate in value over time?
It’s true!
And that can provide a nice capital gain for investors. Appreciation is influenced by a variety of factors, including the location of the property, the level of market demand, and any renovations or upgrades made to the building.
As an investor, you may be able to increase the value of the property even further through strategic renovations or upgrades.
This can boost the property’s market value and potentially result in a higher selling price down the road. 💰
It’s definitely something to keep in mind as you consider different real estate investment opportunities.
Value-Add Strategies
✨ We bet you’ve also heard of value-add strategies for real estate investing.
It’s a pretty cool concept!
Essentially, investors identify properties that need a little TLC and make improvements to increase the property’s overall value. This can involve things like upgrading amenities, improving landscaping or renovating individual units within the apartment complex.
The goal of these value-add strategies is to boost the property’s net operating income.
This can result in higher rental income for investors and potentially even a higher selling price down the line. ❤️ It’s a smart way to approach real estate investing because it allows you to make strategic improvements to the property and potentially see a significant return on your investment.
Tax Benefits
✨ Did you also know that investing in multifamily apartments can offer some pretty sweet tax benefits for investors?
For starters, there’s something called depreciation which can help reduce the investor’s taxable income.
And that’s not all – there are other tax benefits too, like deductions for expenses such as repairs, property taxes, and mortgage interest.
Pretty cool, right? 😘😘 All of these tax benefits can actually increase the investor’s net income and ultimately lead to a higher return on investment.
The Big Picture
We hope this was helpful and inspiring too! As you can see, 🏢 multifamily apartment investing, particularly through apartment syndication, can be a great way to make money through rental income, appreciation, value-add strategies, and tax benefits. 🙏🏻
It’s an attractive option for investors who don’t have a lot of capital to invest upfront but still want to see a potential return on their investment. With the right strategy and approach, multifamily apartment investing can be a lucrative and reliable source of income for smart investors.
For more on apartment syndication and all things multifamily investing, check out our other Cashflow Multipliers episodes, do some casual Kitti Sisters’ blog reading, or head on over to YouTube for some additional Kitti Sisters content, specifically with you in mind.
We would also love to share with you our Free Ultimate Passive Income Guide filled with valuable insights to help you get started on your journey to earning lifelong passive income.
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