Kelly Iannone

1)    Diversification – If Enron taught us anything, it is to diversify. Hard assets, like real estate, do not always correlate with the stock market. They can help to smooth out portfolio returns during periods of volatility in paper asset markets such as stock, bonds, or even publicly traded REITs. 

2)    Cash Flow – Cash is king, right?! Separating the exchange of time for money unlocks unlimited income potential and financial security. Whether used to cover living expense or reinvested to snowball into higher cash flows and wealth, the security of making money while you sleep is the ultimate key to freedom.  

3)    Tax Benefits – A W2/1099 worker’s highest expense is often taxes. Tax laws allow real estate investors (even passive investors) to incur losses on paper while having positive cash flow through depreciation. The depreciation benefit might also be used to offset other passive income, beyond the deal in which the depreciation is from. 

4)    Inflation Hedge – Oh, the gas and food prices!!! Historically, rents have kept up with or outpaced inflation and preserved returns. While some expenses also increase with inflation, in markets with strong population and job growth the rent growth will outpace expense growth, resulting in a net benefit to investors. 

5)    Passive – Mailbox money! You want all the benefits of owning real estate without the tenants, termites, or toilets. Passively investing in multifamily syndications is a great solution. You get the best of both worlds while living your life focused on your family, hobbies, and career. 

6)    Positive Impact – Do well by doing good. By investing in multifamily real estate, you are directly impacting the lives of countless residents by providing safe, clean, and affordable housing.