Many people dream of owning a home they can call their own. Perhaps, it is a condo in a bustling city, a duplex in a subdition, a two-story on five acres or a small cottage at the end of a peaceful street (And American Commodity can help you acquire each one!). Every individual has varying dreams and goals for homeownership and wealth building. There are also millions of average, everyday people who either aren’t in a position to purchase or, for various reasons, don’t have the desire. They have to live somewhere, but who owns the housing if they don’t?

You could! Smart investors are consistently looking for ways to diversify their portfolio and build wealth, and owning multi-family properties is an excellent way to do just that. But why? Why invest your resources on commercial multi-family properties instead of traditional investment paths?

1. Tax Benefits – Who wants to pay more taxes than necessary? No smart investor would raise their hand! Investors can get a significant tax deduction from property ownership. By using depreciation and cost segregation benefits of the tax code, investors can offset passive income.
   
2. Cash Flow – Thanks to depreciation, monthly and quarterly cash distributions may qualify for tax savings during the property hold period. On the contrary, stock portfolios do not have cash flow unless the stock pays a dividend. Most investors like to have cash on hand and a steady flow of it.

3. Portfolio Diversification – Using a self-directed IRA or 401K will allow investors to save cash and use an alternative investment solution, such as real estate. You know the old adage- don’t put all your eggs in one basket, and investing in real estate is a great way to diversify and accelerate your retirement goals by using real estate assets. Plus, commercial multi-family properties are usually more stable than stocks. Over the past four decades, commercial multi-family properties have provided returns that exceed all other real estate property classes as well as have the highest average annual returns of all commercial real estate.

4. Increased Demand – We live in a mobile society. The only thing that is certain, is that everything changes! For that reason, millions of people choose to stay fluid in their choice and location of housing and prefer to rent. Demand for apartments has shown a steady increase over the years as more people migrate to cities and move to the United States. These trends show no signs of slowing down in the near future and apartment complexes are popping up on every corner.

5. Essential Real Estate Sector – As mentioned above, everyone needs a place to live, but not everyone is going to purchase a property or home. For some areas, residential property is too expensive, too scarce or just not in the right place (think the heart of a bustling city).  For that reason, commercial multi-family properties can be considered an essential sector and stable asset in the market. Commercial retail and office spaces often experience dramatic shifts in vacancy based on the economy and are considered more risky than commercial multi-family properties. Businesses may close or move, but people always need a place to live. 

Commercial Multi-Family property investments may not be for everyone, but for those who decide to diversify their portfolio and invest, the benefits are many, the opportunity is available and the time may be now!

How to know if this step is right for you? Contact one of our experienced team members at info@a-commodity.com or (321) 465-7077. We are ready and able to answer your questions and guide you through every step of  the process.