The State of Multi Family Investing

September 14, 20223 min read
The State of Multi Family Investing
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We believe private real estate is a foundational component of your private market portfolio. That’s why Yieldstreet dedicated the week of August 27 – September 2 to helping investors capture the benefits of this valuable asset class with a greater selection of real estate offerings than ever before. Join Chris Salerno, Founder and CEO of QC Capital as we dive into the multi family real estate market.

Key Takeaways:

[3:38] An overview of multi-family real estate investing. 

[11:00] Challenges associated with today’s real estate investments.

[15:26] The impact that migration is having on real estate in the smile states.

[25:03] Major catalysts that could have an immediate impact on real estate.

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Similar to the offerings at Yieldstreet, Chris found a way to become part of one of today’s  fastest growing offerings in alternative investments- multi-family real estate.  He has acquired over $250 million in three years and is now deep in the profits, the distributions and the depreciation of the business. 

It’s possible that in recent years, the American dream has changed.  Less people are working- or able- to own their own home than in the past, making mulit-family properties an attractive alternative.  Multi-family properties have not only increased in popularity thanks to the attractive amenities they offer, from gyms to on-site baristas, they have made it possible for more people to achieve their life goals beyond home ownership.  As an investment opportunity, there is a huge supply and demand shortage in multi-family real estate.  A recent ranking stated that by 2035 we will need 4.3 million units to be developed just to catch up to the demand.

But with today’s volatile market, how can you determine if now is the right time to get involved in multi-family real estate investing? Of the 200 investors that Chris talks to every single week, they all have one thing in common, especially the older investors- they all wish they had bought earlier. There will always be a demand for shelter, and as a result, there will always be a place for real estate in your well-rounded investment portfolio.

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However, there are challenges associated with today’s real estate investments as well.  Chris shares his advice for proactively preparing for these potential challenges, starting with the need to always have capital on hand by way of a reserve account. Payroll has increased, bids are higher, and inflation has had an impact on the market.  But in Chris’s opinion, none of these challenges are reason to shy away from such a strong investment opportunity.

Migration to the smile states continues to be strong, and it’s not without an impact on real estate. But according to Chris, the impact is a positive one. Charlotte, North Carolina in particular is experiencing major growth while maintaining a relatively reasonable cost of living.    And whether it’s a luxury Class A property or a value level, older Class C property, there is a demand for shelter at every price point. Chris highlights the potential return opportunities that might be especially attractive to investors, including on-time rent payments, fewer renovations, and less tenant turnover.With the possibility of Fed rates potentially hiking up, there are short term catalysts that have the power to majorly impact the real estate market. If single family homes continue to be priced out of reach for more Americans, more potential homeowners are going to turn to multi-family properties, driving the demand even higher.  To learn more about how you can get involved in multi-family real estate investments, visit www.yieldstreet.com today.

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