When first entering the real estate investing space, individuals oftentimes pursue residential real estate. What they do not realize is that a commercial estate is also an option. If real estate investing fascinates you, multifamily is the best passive real estate investment opportunity for you to generate steady income.
Asset Classes in Multifamily
Multifamily is considered as a best passive real estate investment opportunity, there are 4 different asset classes: A, B, C & D. Properties are split into different asset classes based on their physical condition, geographical location, and year of construction. Here is an overview of the different asset classes:
Class A: Class A assets come at the top of the multifamily food chain. This includes the luxury and newly constructed apartment complexes that can be typically found in rapidly appreciating and high-growth markets like Phoenix, Arizona or Charlotte, North Carolina.
Class B: Class B assets are older than Class A assets and offer investors the opportunity to benefit from a value-add strategy. Investors often upgrade these assets by giving them a modern touch and communal amenities, as well as by addressing deferred maintenance.
Class C: Class C assets are usually rented by working-class professionals. They usually carry more deferred maintenance due to their age of construction. Beyond that, depending on their location, Class C assets can also provide an opportunity to execute a value-add strategy and potentially an operational play as well.
Class D: Class D assets fall right under Class C assets and are typically found in less desirable locations. They also carry substantial deferred maintenance and often tailor to individuals with lower incomes.
The Value Add Strategy
A value-add strategy denotes an opportunity where real estate investors can increase an asset’s cash flow through rebranding the property, renovating the property, or focusing on operational efficiencies and upside e.g., a management team better positioned to execute a business plan. A value-add strategy can be a terrific strategy in commercial real estate given that it gives investors the opportunity to control the value of an asset.
Conclusion
Investing in Real Estate comes with several advantages. Navigating the real estate investing process can be difficult, but you do not have to do it alone. We are here to help.
How You Can Get in On the Action
Cash Flow Champs is a privately held asset management company that focuses on acquiring and managing opportunistic and value-add multifamily real estate properties. The company specializes in repositioning well-located assets in emerging markets surrounded by positive demand drivers such as population growth and job growth.
Cash Flow Champs partners with entrepreneurs and busy working professionals interested in investing in real estate but who lack the time to navigate the process. Alongside our partners, we aim to bridge purpose and profits in a manner that allows us to improve the lives of the residents in our communities and the neighborhoods where we operate.
In the words of Robert Kiyosaki, the poor and the middle-class work for money. The rich have money to work for them. If you are an individual that wants to build and maintain generational wealth through real estate, all while making a positive impact on the lives of residents and the communities where you invest, we’d love to explore opportunities for synergies.
Schedule a brief call with us so we can get to know you better, understand your life goals, and determine where synergies may exist.
This information presented on this site is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the company or any related or associated company and is not a recommendation to pursue a specific investment opportunity. Any such offer or solicitation will be made only by means of the company’s confidential Offering Memorandum and in accordance with the terms of all applicable securities laws and other laws.