Why Multifamily - Yankee Capital Partners

A SECURE INVESTMENT DRIVEN BY CONTINUED PERFORMANCE

Real estate investment is the cornerstone of consistent wealth. These investments generate ongoing passive income with a promise of appreciation over time. Real estate is a physical asset that can always be monetized by renting, selling, or refinancing the property, irrespective of financial market conditions. This makes real estate a far more stable investment compared to stocks and bonds that are highly susceptible to the day to day fluxes in the market. Within the real estate investment space, multifamily assets have proven to be the safest asset class.

Multifamily real estate addresses the basic human need: “a roof over our head”

Whether the economy is going up or down, people need a place to live. During the last housing crisis, multifamily investment had a default rate of .02% compared to single family homes at 6%.

The Sharpe Ratio is a widely used method for calculating risk-adjusted returns. When plotting risk versus return of various investment vehicles, the chart demonstrates the better performing investments.

20 YEAR RETURN/RISK PROFILE

Across Major Asset Classes

The default rate is the percentage of all outstanding loans that a lender has written off after a prolonged period of missed payments. A loan is typically declared in default if payment is 270 days late.

With home ownership on the decline for the first time in history, there are now more renters than homeowners in the U.S.

The demand for multifamily has been steadily increasing, and it is not expected to decline anytime in the next ten years. What’s more, each year the U.S. builds 350,000 fewer apartment units than are required to meet market demand.

HISTORICAL MORTGAGE DEFAULT RATE

Residential vs. Commercial Real Estate

With the lack of housing in the multifamily sector, now is the time to double the performance of your portfolio

Fractional real estate asset ownership provides lower risks and higher returns than most other traditional asset classes. If you are invested in the stock market or need a hedge against currency inflation, multifamily real estate offers a way to minimize your risk and maximize your overall returns.

Demand for apartments has been surging in recent years. As indicated by the graph, the apartment absorption rate has been steadily climbing across all age groups.