Multi-family Properties Have a History of Stable Values

Volatility Stock prices go up and down, sometimes a whole lot.  They are volatile. A painful example is the 2008 recession and the dramatic dip in stock prices.  Other investment classes also have a lot of volatility — big ups and big downs. Commercial Multifamily Assets have a history of much lower swings in prices.  […]

Real Estate Offers Tax Advantages Not Available in Many Other Investments

Tax Advantages Real estate has a number of tax advantages. One of the key preferential treatments tax-wise with real estate is DEPRECIATION.  Depreciation is a required accounting method that spreads the cost of an asset over multiple years.  The Federal Tax Code requires us to depreciate or take a paper loss on the property each […]

Amortizing Debt Increases the Equity in a Property

Paying down the principal on debt is a second way we grow the value of our assets.  We use appropriate, but significant leverage to purchase our multi-family properties.  We borrow money from the “banks,” often with agency funding from Freddy Mac or Fannie Mae. Each month we make a payment on these long-term loans.  Part […]