Why Commercial Real Estate
Investors who diversify into commercial real estate outperform those who don’t!
Your opportunity right now to invest in multi-family real estate is the best opportunity you have to create the financial freedom you deserve. Why is that you may ask.
1. Necessity
Humans have 3 basic needs to survive and that is food, water, and shelter. We chose to invest in the shelter portion on this equation. Shelter for humans will always be a necessity which provides a safe and dependable return on investment and nothing can change that.
2. Appreciation
Appreciation is the increase in value of an asset over time. As inflation affects everything around us, it simultaneously drives up the value of the property. This is done through careful analysis of location, economic trends, consumer confidence and undervalued rental markets. As the cost of living increases, rents will also increase, which drives the value of the property upwards.
3. Forced Appreciation
Forced appreciation is done by finding “value add” components of each property such as remodeling or rehabbing the property to match current market standards and demands. As we complete this we automatically increase the property’s value.
4. Tax Benefits
In real estate there are many tax benefits we can take away. One we utilize is a cost segregation analysis or a “cost seg”. This is where we get the property analyzed and can accelerate the depreciation schedule of specified items of the asset. We can also utilize something called a 100% depreciation bonus where we can write off all of these items by 100% that first year. When we strategically utilize this and other processes, it can create great tax benefits and increase the properties cashflow.
5. Cashflow
We choose properties that cash flow for our investor’s right from the start. Secondly, the combination of forced appreciation and value add allows us to increase the properties income and add directly to the bottom line. This means more cash flow in the pockets of investors.
6. Performs better than other assets during recessions
Our analysis has discovered with student housing in the right locations, and the right universities, that most universities enrollment increases during tough economic times. Unfortunately, during tough economic times there are also a lot of people that lose their homes, which drives people right back into the rental market that we invest in. High end apartments tend to be more vulnerable to vacancy during times of recession making our focus geared more towards student housing and low to mid income multi-family housing.
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Since its beginnings in 2017, NSRE has been committed to giving our investors the best possible returns.
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