- March 12, 2019
What are Core, Core Plus, Value Add and Opportunistic Investments?
Multifamily real estate can be a steady revenue source in volatile times. Still, not every apartment property is recession-proof. An apartment glut, local layoffs or a debt setback can turn a reliable income generator into a troubled asset.
Equity markets already are signaling an economic contraction, Bloomberg noted recently. Falling bond yields and stock prices make private real estate a smart defensive measure. Even if real estate prices fall–or if buyers and sellers move to the sidelines–multifamily property owners still can ride out the downturn with a source of passive income.
To position a portfolio for multifamily rent growth, investors must size up the local market, their property manager and their financial position. Boots on the ground will help multifamily real estate buyers identify recession-proof properties (or take steps to strengthen the fundamentals of properties they currently own) and show property managers the path to gaining competitive advantage. The seven steps below will assure a more resilient apartment portfolio.