The real estate market has a perception problem.
According to a Gallup poll, 70 percent of Americans think investing in real estate is more difficult than investing in other asset classes.
This may be true, considering the process of purchasing a property does require research, negotiation and what may seem like hoop-jumping to obtain a loan.
But what many do not realize is that that investing in real estate isn’t as hard as you think, and there are several types of real estate investing strategies – ranging from hands-on acquisition and management to completely passive strategies that allow investors to invest alongside billion-dollar institutions.
That is what Upside Avenue argues in its recently-launched white paper, titled Investing for Cash Flow. The special report, which can be downloaded here, seeks to not only clarify the real estate market for investors but also provide an overview of the opportunities available.
Take the multifamily market as an example, which is poised to remain strong for years to come. The multifamily sector, which includes properties with more than one rentable unit such as apartment complexes, is also one that can offer investors a seamless opportunity.
That is because most multifamily investments engage professional property management services, which can come in handy if fixing toilets is not a pastime you enjoy. Professional property management companies have the advantage of economies of scale which allows each property to benefit from increased Net Operating Income.
If they were purchased through an investment firm, nearly all large multifamily properties have professional asset management. This creates a process which results in truly passive income for investors, as they need to do little more than monitor investments and collect distribution checks.
Beyond being ease of management, the white paper also explains how the multifamily market can also protect investors during economic downturns. This is illustrated by how the sector outperformed others in the housing market during the global economic downturn that began in 2007.
This just might be the ideal opportunity, with many leading economists and investment firms predicting major twists and turns in the stock market for the years ahead.
To learn more about diversifying your portfolio into private market real estate, start here.
