Though the answers to most questions vary based on the specific circumstances involved, we will try to give you general answers to some of the most frequently asked questions asked by clients.
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Contact us to find out what options are available.
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Many individuals are unaware that there is a type of Individual Retirement Account (IRA) that allows them to invest in real estate, among other types of investments. It’s called a Self-Directed IRA. A Self-Directed IRA allows individuals to diversify their traditional or Roth IRA beyond the typical stocks, bonds, mutual funds, money market accounts and exchange traded funds into investments such as real estate. Partnering with other investors such as Calex Capital Partners allows individuals to invest in larger assets, such as multifamily properties.
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There a few reasons:
- Economies of scale - When one invests in say 25 single family homes. There are 25 roofs that can fail. 25 boilers that can fail, etc. With multifamily, when you fix the roof, the roof is improved for many tenants and in some cases, all tenants in a building.
- Mitigation of risk - When a single family home is vacant, it is at 0% percent occupancy until rented. With a 50 unit building, there are 600 months of rent in a year. 5 units could be completely vacant for the entire year resulting in still a 90% occupancy rate.
- Value control - by lowering expenses, increasing rents and improving occupancy rates the ultimate value of the multi-family asset can be increased.
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Every property and every investor partner has a different strategy. However our average hold time is 5-7 years.