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TAX INCENTIVES FOR MULTIFAMILY INVESTMENTS

Exploring tax benefits for investments is crucial, and when it comes to real estate, multifamily stands out as a prime choice. These investments offer stable returns and many tax incentives that can substantially mitigate operational expenses. While the savings amount varies, each incentive presents an opportunity worth capitalizing on.

In this guide, we’ll dive into the diverse tax benefits accessible to both multifamily property owners and investors in real estate syndications. This guide is for educational purposes and should not be a substitute for professional tax advice. Investors should consult with a tax professional to maximize tax benefits within the scope of the law.

Depreciation Tax Benefits

Real estate investment offers a unique advantage through depreciation, a tax benefit that acknowledges the natural wear and tear of assets over time. While real estate generally appreciates in value, the IRS still allows for depreciation tax deductions, similar to vehicles and other assets. This deduction reduces tax liability despite the property’s increasing value.

Depreciation works by recording a yearly non-cash expense as a portion of the property’s value, lowering taxable income without affecting cash flow. The IRS provides guidelines for depreciation periods, typically allowing for a 27.5-year period if the investor abides by limits on interest deductibility. However, depreciation can extend up to 30 years if the investor decides to fully deduct business interest.

Here’s how it works: Suppose you acquire a multifamily apartment building for $4 million, with $800,000 allocated to land value (non-depreciable). The remaining $3.2 million can be depreciated over 27.5 years, resulting in approximately $116,364 in annual depreciation.

Depreciation is governed by specific rules and limitations, including the Modified Accelerated Cost Recovery System (MACRS) and the potential recapture of depreciation upon property sale. Maintaining detailed records and consulting with a tax professional are crucial.

Cost Segregation Tax Benefits

Real estate investors are incentivized to maximize depreciation deductions each year, and cost segregation is a powerful strategy. This approach involves reviewing the property and categorizing its components for accelerated depreciation and decreased tax liability. A cost segregation study should be performed by a third party expert.

Typically, all elements of a real estate investment are depreciable except for the land itself, which is a fixed cost. A multifamily property can usually undergo straight-line depreciation over 27.5 years. However, a cost segregation study splits the property into four categories with shorter depreciation periods:

  1. Personal Property: Items like furniture, fixtures, and window treatments are typically depreciable over five or seven years.
  2. Land Improvements: Including parking lots, landscaping, and swimming pools, these items depreciate over 15 years.
  3. Building Components: Structural elements like roofing and plumbing systems are depreciable over 27.5 years for residential buildings.
  4. Land: Any unallocated amounts end up here. Because land isn’t depreciable, the goal is to minimize this amount.

By reclassifying non-structural items as personal property or land improvements, owners can depreciate them over shorter periods, significantly accelerating depreciation. While cost segregation increases annual tax benefits, please note that utilizing these tax breaks may inflate the tax bill upon selling the property.

Cost segregation is another tax benefit that will increase the ROI of a multifamily investment and help you build more wealth with real estate. Strategic planning and expert advice ensure optimization of this tax benefit within legal parameters.

Passive Income Tax Benefits

Understanding passive income tax benefits is crucial for multifamily real estate investors aiming to optimize returns and minimize tax liabilities. The IRS distinguishes between passive and active real estate activities, with passive investors benefiting from lower tax rates.

Investors who spend less than 500 hours annually on real estate activities are considered passive. By remaining under this threshold, investors can avoid higher federal income tax rates, resulting in substantial tax savings.

Research to determine how many hours you spend on real estate activities and the potential tax savings of becoming a passive multifamily real estate investor. The tax benefit from working less than 500 hours can save you a lot of money annually. By investing in a real estate syndication, you would likely be granted passive status by default.

1031 Exchange Tax Benefits

Derived from section 1031 of the Internal Revenue Code, a 1031 exchange is a tax break that allows you to defer capital gains taxes when you sell an investment property and reinvest the proceeds into a “like-kind” property of greater or equal value.

Consider the specific criteria to qualify for this tax break:

  1. The new property must be “of the same nature or character” as the old one.
  2. Both properties must be used for business or investment purposes.
  3. The new property valuation must be the same or higher value.
  4. The new property must be identified within 45 days of the sale, and the purchase within 180 days.
  5. The tax return and the name on the relinquished property’s title must be the same for both properties.
  6. All the equity from the sold property must be reinvested into the new property. If you pull any equity out through the exchange, you may be liable for taxes.
  7. Both the sale and purchase cannot be exchanged directly with family members or people you have a personal relationship with.

Investors should hire a professional to review the transaction and ensure eligibility. Errors could result in taxable transactions, hurting your bottom line.

For a comprehensive understanding of 1031 exchanges and how to file them, read our full guide here.

Real Estate Investment Tax Deductions

Rental income is taxed as regular income, and the amount depends on your tax bracket. Related business expenses can be used to offset the rental income and reduce your tax liability.

These tax deductions can significantly lighten your tax load. The IRS allows real estate investors to deduct taxes from expenses such as:

  • Marketing
  • Utilities
  • Mortgage Interest
  • Insurance Premiums
  • Repair and Maintenance Costs
  • Property Management Fees
  • Capital Expenses

You can also deduct state/local property taxes on your federal tax return. Seek assistance from a specialist to identify which tax deductions your property qualifies for, as not all expenses can be claimed.

Tax Benefits Of Investing In A Syndication

Real estate syndications, like Yankee Capital Partners, pool investor funds to acquire and manage properties. Investing as a Limited Partner (LP) in a real estate syndication offers additional tax benefits:

  1. Pass-Through Deductions: Multifamily syndications are often structured as partnerships or LLCs, which are pass-through entities. Income and losses are passed through to the investors, who report them on personal tax returns. Profits are taxed at the investor’s personal rate, rather than corporate rates.
  2. Diversification: Real estate syndications often invest in multiple properties, helping investors diversify their portfolio. Investors optimize their tax positions by spreading out deductions, credits, and gains across multiple investments.
  3. Limited Liability: Limited partners in real estate syndications have limited liability, meaning their personal assets are protected from the debts and liabilities of the partnership.

These tax advantages make multifamily real estate syndications particularly appealing to investors. It’s important to note that the specific tax benefits may vary depending on the structure of the syndication, the properties involved, and the investor’s individual tax situation. Consulting with a tax professional or financial advisor familiar with real estate syndication is highly recommended.

Conclusion

By leveraging the various tax incentives available for real estate investments, you can substantially reduce costs and enhance your competitive edge in the market. For accredited investors seeking to capitalize on the lucrative real estate market without the burden of direct ownership, multifamily syndication offers a compelling passive investment strategy.

Reach out to the Yankee Capital team of experts today to learn more about our investment opportunities and returns.

1031 EXCHANGE REAL ESTATE: A GUIDE FOR REAL ESTATE INVESTORS

Real estate investing offers numerous tax incentives, including the tax-deferred exchange known as a 1031 exchange.

Since the enactment of the Tax Cuts and Jobs Act (TCJA), real estate is the primary investment asset eligible for tax deferral via an exchange. Other common types of investment, like stocks and bonds, are not eligible for a 1031 exchange. This positions real estate as an ideal investment for wealth building.

This guide will explain the steps and requirements for a 1031 exchange, but please note that it is not a substitute for professional tax advice.

What is a 1031 exchange?

Derived from section 1031 of the Internal Revenue Code, a 1031 exchange is a tax break that allows you to defer capital gains taxes when you sell an investment property and reinvest the proceeds into a “like-kind” property of greater or equal value.

There is no limit to the number of 1031 exchanges you can claim, so you can postpone tax liability indefinitely by reinvesting. In the future, if you leave the property to your heirs, they will inherit the property at the current fair-market price without paying the deferred taxes. This makes real estate the perfect investment asset to build generational wealth.

1031 exchanges can also help to avoid depreciation recapture. When a property is sold, the IRS will normally recapture some of the previous depreciation deductions into the total taxable income. With a 1031 exchange, the second property assumes the cost basis of the first, and your depreciation continues as if you still owned the original property. There are some exceptions to this rule, so it is strongly advised to seek professional help.

4 Types of 1031 Exchanges

The property transactions in an exchange can be structured in various ways:

  1. Delayed exchange. One property is sold first and the replacement property is bought within a 180-day window. This is the most common type.
  2. Simultaneous exchange. Both transactions happen at the same time.
  3. Delayed reverse exchange. The replacement property is purchased before the sale of the original property. You must transfer the new property to an Exchange Accommodation Titleholder(EAT), select a property to exchange within 45 days, and complete the sale within 180 days of the replacement property purchase.
  4. Delayed build-to-suit exchange. The sale proceeds are used to finance a new property built to match the investor’s needs.

1031 EXCHANGE STEPS AND TIMELINE

Follow these steps to claim the tax benefits of a delayed 1031 exchange:

  1. Determine which property to sell. The investment property cannot be your primary residence, and it should have increased in value since the purchase.
  2. Hire a qualified intermediary (QI). This individual or business will facilitate the 1031 exchange, making sure all rules are followed. You can find a QI through the Federation of Exchange Accommodators.
  3. Sell your property. Sale proceeds (minus costs) have to be held in escrow by the QI before being reinvested in the new property. Funds cannot be received directly, or you will be responsible for capital gains.
  4. Select replacement properties. Within 45 days of selling the relinquished property, provide a written list of potential replacement properties. You can list up to three properties, regardless of their fair-market value, or you can list more than three properties if the aggregate value is not greater than 200% of the sold property’s value.
  5. Purchase a “like-kind” property. Within 180 days of the sale, purchase one of the replacement properties from step 4. The QI will then transfer the funds from the sale to pay for the replacement property.
  6. File your taxes with the IRS. Submit Form 8824 to inform the IRS of the exchange and properties. Provide descriptions of the properties exchanged, the date they were identified and transferred, the value and adjusted basis of the like-kind properties, and any liabilities assumed or relinquished.
  7. Hold onto the property. Don’t change ownership straight away, as you need to demonstrate your intent to use the new property as an investment.

QUALIFICATIONS FOR 1031 EXCHANGE REAL ESTATE

To be eligible for a 1031 exchange, the following conditions must apply:

  • Investment properties. The properties must be used for business or investment. This could be anything from small medical offices to large apartment buildings. Personal properties do not qualify.
  • “Like-kind” properties. This does not require buying and selling properties of the same type and quality. Rather, the term ‘like-kind’ refers to the property’s general nature. A wide range of real estate can qualify, as long as it’s used for business or an investment.
  • Maintain value. To qualify for a 1031 exchange, the net market value of the purchased property must be the same or greater than the sold property.
  • Full reinvestment. To fully defer capital gains tax, all of the equity from the relinquished property must be reinvested into the replacement property. If you pull any equity out through the exchange, you may be liable for taxes.
  • No leftover value. “Boot” refers to any additional value gained in an exchange, excluding the like-kind property. If you have cash left over after purchasing the replacement property, or if your liability/debt decreases, that would generally be taxed as a capital gain.
  • Taxpayer name. The tax return and the name on the relinquished property’s title must be the same as those for the new property.
  • No personal exchanges. Both the sale and purchase need to be arm’s length transactions, meaning you can’t exchange directly with family members or people you have a personal relationship with.

 

WHEN TO NOT CLAIM A 1031 EXCHANGE

There are some scenarios in which a 1031 exchange is not recommended. If you invested through a qualified retirement account, like a self-directed IRA, you won’t need to file a 1031 exchange as it is already tax-deferred.

Additionally, if you haven’t owned the property very long, then depreciation recapture and property appreciation will be minimal. In this case, the 1031 exchange transaction costs would likely exceed the tax owed.

CONCLUSION

A strategic investing approach can help you maximize your retirement income while minimizing your investment taxes. By following these timelines and rules, you can use the 1031 exchange to defer capital gains tax and depreciation recapture for your property. However, the complex rules and exceptions will require professional help to avoid costly mistakes.

Investors often struggle to find suitable replacement properties and to manage the properties after purchase. If you are looking for a more passive, hands-off approach to real estate investing, consider investing through a syndication firm, like Yankee Capital Partners.

Pros and Cons Of Investing In Real Estate (A Detailed Analysis)

Investors are always looking for ways to diversify their portfolio with low-risk and recession-proof investments. When it comes to real estate, there is a wide range of investment options.

You can buy real estate investment trusts (REITs), which are like purchasing stock in a company. However, seasoned real estate investors often buy multifamily or commercial properties, leasing them out to enhance cash flow or selling when property values appreciate.

If you’re looking for a more hands-on investment with higher returns and added tax benefits, then buying and managing a physical property is the way to go. But this type of investment typically requires that you either manage the property yourself or hire a property manager to deal with leasing and maintenance.

Real estate syndication investment firms, like Yankee Capital Partners, allow you to participate in traditional property investing through a more passive approach. By pooling together capital from multiple investors, these syndication firms provide access to larger real estate projects that might have been beyond your reach. These firms usually handle the property management as well, allowing the individual investors to collect passive income.

There are some risk factors to consider, but real estate can be a highly rewarding (and lucrative) investment if you’re diligent and patient in building wealth with real estate. Compared to traditional investments, such as the stock market, real estate is a much less volatile and more rewarding industry.

This post will cover the pros and cons of real estate investing, so keep reading to determine if real estate is the right investment for you.

Pros Of Real Estate Investing

There are many benefits of investing in real estate:

Real Estate Provides Cash Flow

By acquiring an investment property and opting to lease it, you open the door to a consistent stream of rental income from your tenants. This passive income can cover mortgage payments, bolster your retirement fund, or provide an additional source of cash flow for both you and your family. This steady influx of funds contributes to the property’s overall profitability and offers financial flexibility.

With commercial investment properties, the potential for cash flow extends beyond traditional tenant rent by generating income through direct transactions with customers. A diversified approach enhances the overall cash flow potential of your real estate portfolio by capitalizing on various market sectors and income streams.

Real Estate Appreciates In Value

The market value of investment properties tends to appreciate or increase over time. Holding onto your investment property for an extended period often allows you to realize a substantial profit by selling it above the initial purchase price.

Even though home values historically follow a rising trend, there are times when properties can drop in value, such as during an economic crisis. However, investors can implement value-add strategies to improve properties, increasing their overall value and the potential for higher returns.

In the long term, both property appreciation and rental income stand out as the primary revenue sources derived from real estate investing.

Real Estate Hedges Against Inflation

Inflation erodes the value of many investments, but real estate investments serve as a reliable hedge against inflation, safeguarding your portfolio. Historically, rents and property values increase along with the price of goods, while monthly mortgage payments remain the same. This trend boosts cash flow, offering investors a robust strategy to preserve and grow their wealth even during periods of high inflation.

Real Estate Is Recession-Resistant

Real estate investments, especially residential real estate, are one of the most recession-resistant investments. Rental demand typically remains stable during recessions, as housing is a fundamental need regardless of economic conditions. The stable demand for housing ensures that real estate maintains its value even during periods of economic downturns. This inherent resilience positions real estate as a reliable and recession-resistant asset class, providing investors with a valuable buffer against the uncertainties of economic fluctuations.

Real Estate Offers Tax Benefits To Investors

Typically, all of the cash flow generated from your rental property is tax-advantaged. Your mortgage interest rate, managing costs, and home insurance are all tax-deductible. Depreciation also serves as a valuable tax deduction, offsetting taxable income. Cost segregation studies identify and reclassify assets in investment properties, accelerating depreciation for tax benefits. This process enhances cash flow by allowing property owners to have a further deduction of a portion of the property’s cost each year.

The full benefits of tax deductions have an immediate effect on LP investors from the cash flow of the property. The benefits increase for GP investors by being able to use standard deductions and depreciation across other investment income, including the stock market and other properties.

Direct and syndicated real estate investments are advantageous over REITs when it comes to capital gains tax. One significant benefit is the ability to leverage a 1031 exchange, allowing investors to defer the payment of capital gains taxes. Through this mechanism, limited partners can reinvest proceeds from the initial property into another investment, effectively postponing the taxes on their profits. It’s important to note that the 1031 exchange is only possible in apartment investing and not in REITs.

Cons Of Real Estate Investing

There are some disadvantages to consider with real estate investing:

Real Estate Investing Takes Time

Investing in real estate demands time and a longer-term commitment. While the process is not instantaneous, patience can yield profits. A strategic, well-researched approach and a diversified portfolio are crucial. As real estate assets are tangible and less liquid, they can’t be quickly converted to cash, and selling incurs transaction costs. It is important to have a longer-term investment strategy.

The learning curve is steep, necessitating thorough research to avoid costly rookie mistakes. Seeking guidance from experienced mentors can be invaluable for navigating the complexities of the real estate industry.

Real Estate Investing Requires Cash Upfront

Real estate investing requires a lot of capital up front and financing can be difficult to secure. To purchase a property, you’ll need a down payment, closing costs, and funds to improve or repair the building. Additionally, there will be ongoing expenses like maintenance fees, insurance, mortgage payments, and property taxes.

Many self-claimed “industry experts,” say you should get started buying properties with other people’s money, but we recommend you avoid these schemes at all costs. If you’re looking to invest in real estate without breaking your savings, we recommend REITS to build up a portfolio and start collecting dividends from your real estate investments.

Real Estate Can Have A Heavy Workload

Managing a property comes with its share of challenges, involving a mix of operational and regulatory complexities. For example, delinquent tenants can cost you a lot of money and valuable time. Your cash flow can take a significant hit if you end up renting to a tenant who fails to make payments or leaves the premises in a severely damaged condition.

It can be tough to make difficult decisions, and one way to make things easier is to hire a property manager responsible for collecting rent from tenants. Investing through a real estate syndication firm, such as Yankee Capital Partners, allows the firm to handle property management issues, leaving you to focus on what matters most.

Real Estate Experiences Market Volatility

Market volatility poses a significant challenge for real estate investors, affecting both vacancy rates and cash flow. Fluctuations in regional and national markets can lead to drops in rental income, making it crucial for investors to stay vigilant with market research.

To navigate these uncertainties, investors should build a financial buffer that allows flexibility in handling lower rent prices without jeopardizing debt service obligations. Property managers can also proactively diversify income streams, such as introducing fees for laundry or parking, to counterbalance potential decreases in rental income.

Conclusion

Real estate investing is a solid financial decision if you’re well-informed. Start by digging into your local real estate market, talking to experienced investors, assessing your risk tolerance, exploring investment strategies, and researching financing options. Success doesn’t happen overnight, but with patience and proper planning, you’ll set yourself up for a rewarding journey as a successful real estate investor.

If you’re interested in investing through a real estate syndication firm, sign up for our email list or contact us to ask about our superior returns.

Why Multifamily Homes Are the Best Recession-Proof Investments

With recent rises in inflation and high interest rates, it’s increasingly important to make sure that you find the right investments. Investors and analysts are growing concerned about an impending recession as fluctuations in interest rates can directly affect the severity of economic contractions. Because employment rates and consumer spending decline during a recession, investing might seem like a risky proposition; however, multifamily homes have historically proven to be a safe investment during recessions.

Here are the top reasons why it’s a smart idea to buy multifamily homes if you’re looking for a recession-proof investment.

Advantages of Buying a Recession-Proof Home

As with anything, there are both pros and cons in real estate investing; however, the advantages far outweigh any disadvantages. The first advantage is that multifamily homes are cost-effective compared to buying the same number of homes separately. That’s because you can group maintenance costs, making repairs cheaper. For example, you only need to hire one gardener, electrician, or plumber to look at the building. Also, when making inspections, you can visit all of the units at once. There is no need to travel all over town to separate properties.

Multifamily homes are also a big earner for the amount of rented space. Typically, you can charge more than if one family was renting the entire building. Therefore, potential earnings increase significantly.

Multifamily homes spread the risk between multiple renters. Even if one apartment is vacant, you will likely still be earning revenue from the other units. If one tenant becomes delinquent and doesn’t pay on time, the others will likely continue to pay.

Finally, rental vacancy rates remain low during a recession, as housing is a basic need. Rental inflation rates typically remain positive, making multifamily properties a recession-proof investment. In general, moving into an apartment costs less than moving into a home, so multifamily properties should have more success in finding tenants quickly.

How to Find Investable Multifamily Homes

You are not the only person looking for suitable investments during a recession. Real estate owners are holding on to their assets for the reasons outlined above. You’ll need to work harder than usual to find a property that is a good match for your investment portfolio.

You’ll need to practice more persistence and check listings regularly. You can also try to find off-market deals through seller relationships and well connected brokers. The trick is to move quickly when you find something of interest. If you wait too long to make a decision, another buyer could move in ahead of you. Even in a recession, sellers may need to get rid of a hot property for various reasons. Be in the right place at the right time to take advantage.

Real estate investment companies, like Yankee Capital Partners, can simplify this process by finding the right investment properties for you. Using favorable terms from lender relationships, we buy multifamily properties at conservative levels of debt leverage. We also conduct due diligence with our property management and construction teams.

Due Diligence in Recession-Proofing Your Multifamily Homes

Have you bought a multifamily home but don’t know how to make the most of your investment? Tilt the odds of success in your favor by implementing a few steps to recession-proof your property.

  • Tenant Retention: The goal is to keep your tenants in the property for as long as possible. Tenant turnover is costly because you may need to pay for cleaning and maintenance services as well as spend time looking for new tenants. Interview tenants to get a feel for how long they are likely to stay in the property. You can also increase capital expenditures on amenities to encourage retention.
  • Capital Reserve: It’s always a smart idea to save up money for when rental income has a downturn, especially during a recession. Tenants may lose their jobs and not be able to pay for months at a time. Therefore, a capital reserve is vital to get you through potential spikes in vacancy or emergency repairs.
  • Cost Control: Multifamily renting is like owning a business – the aim is to keep costs down to increase ROI. Don’t buy the most expensive furniture and flashy appliances. Instead, look for deals and bulk purchase discounts, as they are a great way to limit costs and boost profits. You can adjust your rent rates while maintaining a positive cash flow by reducing expenses and utilizing your cash reserve.
  • Rent Collection: Rent collection methods are especially important during a recession. You should utilize technology and allow for different methods of payment. For residents who fall behind, you can use software that takes a portion from their paycheck. Post-resident software also helps to collect payments from residents who left without paying.
  • Income Streams: By broadening your income streams, you can help soften the blow to your revenue when tenants become delinquent. For example, you can offer other services to your residents, such as laundry vending.
  • Leverage Point: Buying with a lower leverage point (debt-to-equity ratio) is a safer investment during a recession, as higher leverage poses significant risk due to potential property value declines. To mitigate this risk, opt for lower leverage (55-70%) and choose fixed-rate debt over floating rates. This conservative approach ensures more stability and predictability in interest payments, providing a safer investment strategy amid economic uncertainty.
  • Diversification: It’s a smart idea to diversify your investment portfolio across various locations, property types, strategies, stages, etc. This will help to spread the potential risks associated with a recession.

Conclusion

Multifamily homes are an excellent investment in a recession. All you need to do is find the right deal and make the purchase when it becomes available. There will always be a demand for multifamily homes, which makes it a low-risk investment.

Follow the list of preparation steps outlined above, and you can make the most of your multifamily investment. Take action by contacting Yankee Capital to expand your portfolio and reap the rewards, regardless of economic contractions.

The Hunt for Yield

Interest rates are low, inflation is rearing its head and equity markets are at all-time highs.  This puts many investors at a crossroads and in need of a strategy that can generate income, hedge against inflation, and is largely secular to the equity markets, and our recommendation would be to look at investing in commercial real estate.

 

There was a time when commercial real estate investing for a retail investor was speculative and the barriers to entry in acquiring high quality institutional assets proved to be high.  Recent policy developments have led to accredited investors being able to access these prized assets and benefit from the income, appreciation and tax benefits once only available to large institutions.  Not all commercial real estate has performed well however, with retail and hospitality properties bearing the brunt of negative effects of the pandemic over the past year.  On the other hand, one of the shining stars in commercial real estate has been multifamily properties owing to the basic fact that people will always need a place to live.

 

Within multifamily properties, B-Class middle income housing has proven to be a strong performer simply by being in the middle.  It is the largest pool of renters who may have student debt or are unable to afford a down payment and are likely to remain renters for an extended period of time.  In times of economic boom, renters in C-Class apartments will upgrade to B-Class and in times of economic uncertainty, A-Class apartment residents will trade down to a B-Class community to save money.  Being in the middle is comfortable, relatively safe and lucrative.

 

With regards to income and returns, B-Class properties can punch above their weight when combined with a “value add” strategy.  This involves exterior and interior updates that bring the property up to modern standards, commanding higher rents and driving the overall value of the property upwards.  Investors can enjoy a passive stream of tax advantaged income from the property starting on the very first day of investment and will see these cash-on-cash returns grow as the capital improvement plan progresses and the rents grow.  At the end of a typical holding period of 5-7 years, the property can be sold, refinanced or rolled tax-free into a different property.  This is where the value of the property improvement process is realized, delivering strong returns on the backend at a capital event. 

 

Between the income, tax benefits, appreciation, and principal protection of owning a real, stabilized asset, a pivot towards a multifamily investment strategy may be exactly what a sound investment portfolio needs in these times.  

 

A great place to start is our FUND PAGE and INVESTOR DECK

As always, if you’d like to discuss any of these points further,
you can reach out to us at info@yankee-capital.com

 

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The Top 10 Reasons to Invest in Multifamily Real Estate

We all know we should be investing in real estate, so what is holding you back?

Our team has put together the “Top 10 Reasons to Invest in Multifamily” as a guide for you.

 

 

We highlight some of the many benefits that come with investing in multifamily real estate gathered from our years of experience.

 

 

 

Click HERE to see the full report

 

 

Feel free to reach out to the team if you’d like to learn more, or find more information on how to invest HERE.

Webinar on Multifamily Execution and Adaption – A Case Study

Now available: If you’re considering investing in multifamily properties, this webinar will illustrate how our strategy and execution make our investments a success.

We show you the numbers and explain how we’ve delivered value creation in our first fund.

 

A replay of the live event can be found HERE

 

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

We’d be happy to talk about our investment offering, and how you can benefit from real estate exposure in your investment portfolio that provides you with a completely passive stream of income.

Inside Large Scale Multifamily Investment Strategies

In our latest Webinar, we shared insights into five large scale multifamily investment strategies

If you were unable to attend, or wanted to access the presentation and watch a video replay, the links can be found below.

The full presentation slide deck can be found HERE

A replay of the live event can be found HERE

 

There are a wide range of strategies investors follow when investing in apartment complexes. In this webinar we run through several different approaches investors can take when assessing a multifamily investment.

From new properties to old, we will break down the pros and cons of each and give insight that prospective investors can use to understand a sponsor’s approach and make an informed investment decision.

We cover 5 different strategies investors use when approaching large scale multifamily investments:

> Ground Up Development

> Core

> Momentum

> Government Subsidized Housing

> Value Add

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

We’d be happy to talk about our investment offering, and how you can benefit from real estate exposure in your investment portfolio that provides you with a completely passive stream of income.

Webinar: Why Multifamily Investments? Slide Deck and Replay Available

In our latest Webinar, we shared insights on the many aspects of investing in multifamily properties.

We thought it would be useful to our readers who were not able to attend to read through the presentation.

 

The full presentation slide deck can be found HERE

A replay of the live event can be found HERE

In this webinar, we cover:

What is Multifamily?

Classes of Multifamily

Benefits of Multifamily

How to pick the right investment

 

As always, please feel free to reach out to the team if you have any questions or would like to discuss further or book a call with the team HERE

 

Yankee Capital Partners Announces the Launch of the YCP Value Fund II

Lynnfield based real estate investment firm kicks off 2021 with plans to acquire their next multifamily property

 

Lynnfield, MA, February 24, 2021 – Yankee Capital Partners (YCP), the multifamily real estate investment firm, today announced the launch of their new fund, the YCP Value Fund II. The firm specializes in acquiring and optimizing B Class multifamily housing in markets selected with a data-driven approach. This new round of funding comes on the heels of proven success of this investment strategy in 2019 and 2020, setting the company on a trajectory for rapid growth in 2021.  This ‘value add’ strategy allows YCP to deliver strong investment returns and value to their accredited investor clients.  The new fund will also create opportunities for further investment in several emerging and high opportunity markets, including Texas and the Carolinas.  

“The Value Fund II is an exciting milestone for YCP and builds on the momentum the team has built so far,” said Ravee Dave, Founder, and CEO of YCP.

“We’re delighted to offer accredited investors access to commercial real estate, in particular multifamily assets, that are usually only available to institutional investors.  Our clients enjoy participating in the income and appreciation of a real, stabilized property, and we look forward to increasing our investor base with this new fund.”

 Upgrading the properties’ exterior and interiors are at the forefront of the YCP strategy. 

“We really set ourselves apart in that we have in-house construction expertise and are able to implement our value add strategy and improve these properties at a lower cost than our competitors to the benefit of our investors.  We continue to build on our construction and investment track record and can now welcome new investors to our next project,” said Edward Sarkisyan, Yankee Capital Partners’ COO. 

With growing interest in the sector, the YCP Value Fund II is already gaining traction with investors and the advisors who serve them.  Together, the YCP team and their investors recognize the need for access to diversification away from the traditional stock and bond markets while enjoying strong, risk-adjusted returns.  The team looks forward to further expansion and funding in 2021. 

 

About Yankee Capital Partners 

Yankee Capital Partners is a real estate investment company located in Lynnfield, Massachusetts.  YCP pools investor funds to acquire and reposition multifamily properties through a value add strategy, delivering strong returns and cash flow to its investors.  With a seasoned team of real estate investment and construction project management professionals, YCP is uniquely positioned to capture maximum value in each of its deals. 

http://yankee-capital.com/