At Rezilient Capital we believe there’s no better investment than multifamily commercial real estate. There are numerous advantages to becoming a passive investor: steady cash flow, diversification, and long-term appreciation, making it a compelling investment strategy for many.
When tax season comes around, your investment in multifamily commercial real estate is considered a loss even after generating a profit. So whatever money you make off of investing in a syndication may be tax-free earnings! That’s money that you can keep reinvesting for more growth and further tax deferment or use immediately for a big purchase. This is different than stocks where your dividends are taxable.
With commercial real estate, you also have the option to use your IRA or 401k to invest. This is known as a self-directed IRA, and it is an alternative to a traditional retirement investment. If you are looking for a way to diversify funds, a self-directed IRA may be the ultimate solution. You have a greater amount of control over where your money is going and can feel more secure with the investment.
Forced Appreciation
Forced appreciation is a perk of investing in real estate through syndication that you won’t get with other types of investing. There is greater control over what adjustments can be made to impact the value of a property. Adding amenities to a multifamily property or renovating it will automatically increase the value, sometimes resulting in a dramatic increase in ROI.
The Flexibility of a 1031 Exchange
The 1031 exchange is another extremely helpful tool that commercial real estate investors can utilize to their benefit. 1031 exchanges allow commercial real estate investors to defer the payment of capital gains taxes to the IRS, as long as they exchange their property for another “like-kind” commercial property within a certain period of time. This like-kind property must be of greater or equal value to the initial property, and cannot be a single family home used as the owner’s personal residence.
Low Risk
Unlike playing the stock market, going the syndication route with Rezilient Capital is fairly low risk. The stock market is extremely volatile, but real estate is typically a safer, more stable investment. And the syndication route is one of the lowest risk ways to invest in real estate.
For most investments, a recession can also have a dire effect on your investment. This isn’t typically the case for multifamily properties. Even in the case of an economic downturn, you can usually expect this sector of real estate space to continue to thrive.
Promising Passive Income Opportunity
Something else that’s appealing about real estate syndication is that it requires minimal effort on the part of the investor. With some real estate investments, you have to be more actively involved in the purchase and day-to-day needs of the property. But real estate syndication is completely passive. All you have to do is put up the money and leave the sweat equity to our capable team.