Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
Perhaps the greatest advantage of investing in apartment buildings lies in its extremely low risk profile. For decades, the multifamily market has proven much less volatile than single family homes, the stock market, and cryptocurrency.
When the housing bubble popped in 2008, the delinquency rates on Freddie Mac single-family loans soared, hitting 4% in 2010. By contrast, delinquency on multifamily loans peaked at 0.4%. At its worst, the multifamily delinquency rate was 90% lower than that of residential real estate.
So, if you’re looking for a recession-proof way to invest your money, there is no better option than apartment building investing.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
@Justin Goodin I disagree. Plenty of bad deals and bad operators I see pitch deals every day. People I would never trust with $20, less alone take down and successfully run an apartment syndication. I see operators that haven't paid distributions in over a year, blaming it on covid? Seem more likely just like bad property management. I see operators recycling deals from one group to another. Might be valid in some cases, but how can you sell at the highest price for current investors and get the best price for the next set? Looks like they're just generating fees to me.
There are nice deals out there, but you have to spend a fair amount of time shifting through the pitch decks to find the gems from the trash.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
I’ll second Bruce’s comment. Soooo many classes and seminars about how to start with syndications, even if you’ve never owned one rental. So many deals set up where the gp’s income is guaranteed and even some where the disposition is a refinance that buys the LP’s out.
Justin, you mentioned the foreclosure rate being 10x higher in SFR. That's because 90% of the SFR were owner occupant, so really about the same. BUT, the vacancy rate was at least 10x higher in vegas for MFR over SFR.