Put Your Money to Work in 2024: Three Reasons to Avoid Entering The New Year With Lazy Cash

As the final weeks of the year approach, many investors find themselves holding onto a substantial amount of unused cash, potentially missing out on crucial opportunities to grow their wealth. Though many are wary of deploying cash into today’s market, savvy investors are seizing the moment. Allowing your money to remain stagnant can be a costly mistake in the long run; investing in multifamily real estate development projects is a compelling option to put your money to work. Our projects offer a dynamic engine to fuel your financial future, even in uncertain times. 

Historical data consistently demonstrates the distinct advantages of multifamily real estate as a stable and resilient asset class, particularly in periods of economic uncertainty. Even during the Great Recession of 2008, multifamily investments showcased remarkable resilience, exceeding the performance of other asset classes such as stocks and bonds. This resilience was further solidified during the COVID-19 pandemic, where multifamily investments delivered a robust 18.9% return in 2021 according to NCREIF. 

Today’s volatile market might be fueling your investment anxiety. But don’t let it sabotage your financial goals.  In the paragraphs below, we will take a closer look at why investing in multifamily real estate now is a great strategy moving into 2024:

Rising Demand

The multifamily housing market is experiencing robust growth, fueled by a combination of factors. Limited availability of single-family homes and rising ownership costs driven by increasing mortgage rates are contributing to a significant increase in demand for rental units. This surge in demand is outpacing current housing supply, with a national gap of nearly four million units projected to widen to 6.5 million by 2030. This translates into high occupancy rates and strong rental growth, creating a favorable environment for investors seeking stable and predictable investment options. 

Inflation Hedge

Multifamily real estate investments offer a compelling hedge against inflation. Everyone needs a roof over their head, that’s why when prices go up because of inflation, the cost of rent and homes usually goes up too. This means you can earn extra money from your multifamily real estate investment even when everything else gets more expensive. Plus, having different types of investments  —  like multifamily real estate  —  helps diversify your portfolio and spread out the risk, so if one investment in your portfolio isn’t doing well, the others can still generate worthwhile returns. In summary, property values and rental income have historically exhibited a positive correlation with inflation, effectively protecting investor’s capital and generating additional returns. All of this positions multifamily investments as a valuable asset class during inflationary periods, safeguarding overall wealth.

Growth Potential

Investing in multifamily real estate development presents a unique opportunity to participate in the entire process  —  capturing returns across land acquisition, construction, lease-up, and long-term asset appreciation. In a way, what we do at Roers Companies is kind of like growing a money tree. First we find the perfect spot, then plant the seeds with construction. Next, during lease-up, we attract tenants like birds to their nests, and watch the tree grow taller and stronger as rents roll in over time. Over time the tree keeps growing and investors can use the returns from this money tree to plant even more trees (i.e., re-investing in new projects). This strategic approach contributes to the establishment of a robust financial foundation for the future. 

With strong underlying fundamentals, the multifamily market presents a compelling opportunity for investors to deploy lazy cash with significant potential for long-term success. With a demonstrated history of success in developing and managing premium multifamily properties, Roers Cos. is dedicated to offering investors stable investment opportunities with the potential for exceptional returns. We are eager to discuss your investment objectives and collaboratively develop strategies to achieve them. If you are interested in learning more about multifamily investing, please contact us today. 

Sources:

CNN, Fannie Mae, NCREIF

NO OFFER OF SECURITIES; DISCLOSURE OF INTERESTS: Under no circumstances should any material on this flyer be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the confidential Private Placement Memorandum relating to the particular investment. Access to information about investments with projects undertaken by Roers Companies LLC, Roers Companies Project Holdings LLC, or any of their respective affiliates is limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who are generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments. Investment outcomes vary. Past success does not guarantee future results. Historical return details available.