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Multifamily Real Estate Investing (3 Strategies)

Multifamily Real Estate Investing (3 Strategies)

Multifamily Real Estate Investing (3 Strategies) 1280 850 m5wyrwy4t888875

3 Strategies for Successful Multifamily Real Estate Investing

If you’re looking for a solid investment opportunity, multifamily real estate investing might be right for you. This type of investment can offer several advantages over other options, including stability and the potential for high returns. But it’s important to remember that multifamily investing is not without its risks. To be successful, it’s essential to have a solid strategy in place, and here are our top three.

1. Invest in Value-Add Properties

One strategy that can help you succeed in multifamily real estate investing is focusing on value-add properties. These are properties that have the potential to increase in value over time with strategic improvements. By adding value to the property, you’ll also be increasing its rental income potential. This can be a great way to earn a higher return on your investment.

2. Renovate a Distressed Property

Another strategy to consider when investing in multifamily real estate is to renovate and repair distressed properties in growing communities. These are properties that are either under foreclosure, in pre-foreclosure, or under the control of a bank or lender. By purchasing a distressed property, you’ll be able to get it at a lower price than its market value. This can be a great way to generate high returns if you’re willing to put in the work to renovate the property.

3. Focus on Niche Markets

Finally, focusing on niche markets is another strategy that can help you succeed in multifamily real estate investing. There are many different types of multifamily properties, from student housing to senior living facilities. By focusing on a specific niche, you’ll be able to better understand your tenants’ needs and ensure that you’re providing them with the best possible experience.

Which Strategy is Right for You?

No matter which strategy you choose, multifamily real estate investing can be a great way to earn passive income and build long-term wealth. Just be sure to do your research and understand the risks involved before committing any money. With a solid strategy in place, you can minimize your risk and maximize your chances for success.

Finding Opportunity. Delivering Success.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

Passive Real Estate Investing (Getting Started)

Passive Real Estate Investing (Getting Started)

Passive Real Estate Investing (Getting Started) 1280 850 m5wyrwy4t888875

How to Get Started with Passive Real Estate Investing

Do you want to invest in real estate but don’t have the time or money to own a property directly? If so, then passive real estate investing may be the perfect solution for you.

Investing passively in real estate is a great way to build wealth over time without having to manage the day-to-day operations of a property. If this sounds like something that interests you, there are a few different ways on how to get started.

1. Consider Investing in a Real Estate Investment Trust (REIT)

One popular method to invest passively in real estate is through a Real Estate Investment Trust (REIT), which is a company that owns and operates income-producing real estate. You can invest in REITs either directly or indirectly. Direct investment means buying shares of the REIT itself, while indirect investment means investing in a fund that holds REIT shares.

2. Become a Partner in a Real Estate Syndication

Another passive way to invest in real estate is through a syndication. This is when a group of investors pool their money together to purchase a larger, more high-quality asset that they would not have been able to purchase on their own.

Syndications are typically set up as partnerships where the general partner, or “sponsor,” is responsible for sourcing, underwriting, and managing the investment property as well as executing the overall development or value-added plan. They earn fees or a share of the profits to do so. The general partner typically invests a portion of their own money in the deal—about 10% or more of the total equity—and the remaining cash gets raised by the limited partners, who passively invest in the property. Limited partners are not involved in the day-to-day management of the property and take on no liability risks of owning the property. However, they do get all the benefits of owning the property and receive a pass-through of the income, expenses, gains, losses, and tax deductions, just as if they had owned the property directly.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

What is Real Estate Depreciation?

What is Real Estate Depreciation?

What is Real Estate Depreciation? 1280 850 m5wyrwy4t888875

MRA Capital Partners Explains Real Estate Depreciation

Real estate depreciation is a term you will often hear if you are purchasing or investing in property. But what exactly is real estate depreciation, and how does it affect the value of a property? Keep reading to learn everything you need to know about real estate depreciation.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

Is Now a Good Time to Invest in Real Estate?

Is Now a Good Time to Invest in Real Estate?

Is Now a Good Time to Invest in Real Estate? 1280 850 m5wyrwy4t888875

4 Signs It’s Time to Invest in Real Estate in 2022

It’s no secret that investing in real estate can be a great way to secure your financial future. But with the market constantly changing in 2022, it can be hard to know when the right time to invest is. In this blog post, we’ll take a look at key signs that suggest now might be the right time for you to invest in real estate.

1. People are Seeking a Better Work-Life Balance

The pandemic has accelerated the need for a better work-life balance amongst many younger and older workers as well as retirees. This has caused them to relocate to southern states in the sunbelt, and according to PricewaterhouseCoopers Emerging Trends in Real Estate 2022, the top markets to watch include:

  • Nashville, Tennessee
  • Raleigh-Durham, North Carolina
  • Phoenix, Arizona
  • Austin, Texas
  • Tampa-St. Petersburg, Florida
  • Charlotte, North Carolina
  • Dallas-Fort Worth, Texas
  • Atlanta, Georgia

As a result, these markets offer real estate investors the ability to take advantage of the exceptional growth rates and add sunbelt properties to their portfolios.

2. Rentals Remain Strong

As more workers seek a better work-life balance and move out of their family’s home, demand for single-family and multifamily rentals is increasing. This increase in demand is resulting in higher rent prices, which is good news for landlords and property investors.

3. Better Return on Investment

The stock market has been volatile and left many investors wary of investing in stocks. Despite this, real estate has remained a strong investment because it’s a tangible asset, which means it has intrinsic value. This makes it a much safer investment than stocks, which can be subject to drastic swings in value.

4. Protection Against Inflation

Inflation has been the topic of conversation on many investors’ minds. So far, we’ve seen inflation steadily rise over the past year, hitting an all-time high of 8.6% in May 2022, according to Statista. These rising inflation numbers can be startling, and to best protect your portfolio, real estate is a great solution. This is because real estate prices tend to rise with inflation, allowing investors and property owners to increase rent prices and create a greater profit margin.

Should You Invest in Real Estate in 2022?

If you’re considering investing in real estate, now is a good time to start doing your research. Talk to a financial advisor and look for real estate investments that have long-term potential. With careful planning, investing in real estate can be a great way to secure your financial future.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

Real Estate vs Stocks: Which is Better in Volatile Markets

Real Estate vs Stocks: Which is Better in Volatile Markets

Real Estate vs Stocks: Which is Better in Volatile Markets 1280 850 m5wyrwy4t888875

5 Reasons Real Estate is Better than Stocks in Volatile Markets

When it comes to the stock market, there’s no doubt it can be volatile. We’ve seen it firsthand over the past few years with all of the ups and downs, which is leaving many investors questioning if investing in the stock market is the right decision for their portfolio.

If you’re looking for an alternative investment—something that is less volatile and more stable—real estate is a great option to consider. Here are five reasons why real estate is a better investment than stocks during times of market volatility.

1. It’s a Physical Asset

One of the main advantages of investing in real estate is the fact that it’s a physical asset—something that you can see and touch. So, while the stock market may fluctuate, a real estate investment will typically remain stable.

2. Not as Volatile

Another reason to choose real estate over stocks is that it’s not as volatile. The stock market can fluctuate quickly due to market forces such as supply and demand, world events, government policies, and speculation vs. expectation. While real estate can fluctuate, it typically doesn’t do so at the same rate.

3. Generates Incomes

Unlike stocks, which simply provide capital gains, real estate can provide you with a steady income stream. Whether you’re renting out a property or leasing land, you have the potential to earn money from your investment.

4. Hedge Against Inflation

Real estate is a great hedge against inflation. As we’ve seen over the years, the cost of living keeps rising. And, as your property appreciates in value, you’ll be able to keep up with the rising costs by increasing rent or selling the property for a higher market price.

It’s a Long-Term Investment

If you’re looking to invest for the long haul, real estate is a better option than stocks. With real estate, you can purchase a property and hold onto it for years, or even decades. And, as we all know, the longer you hold an investment, the more time it has to grow.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

How to Proect Your Portfolio Against Inflation

How to Protect Your Portfolio Against Inflation

How to Protect Your Portfolio Against Inflation 1280 850 m5wyrwy4t888875

How Real Estate Protects a Portfolio Against Inflation

As the year continues, inflation has been the topic of conversation on many investors’ minds. So far, we’ve seen inflation steadily rise over the past year, and according to Statista, it hit an all-time high of 8.5% in March 2022. These rising inflation numbers can be startling to see as products and services will now be offered at much higher rates, resulting in the average person’s purchasing power being reduced, especially when it comes to retirement savings.

The good news is that there is a solution to help protect your portfolio against inflation: real estate. By passively investing in real estate through a privately held boutique real estate investment company like MRA Capital Partners, you’ll be able to make inflation work for you and increase your income.

So, how does real estate work as a hedge against inflation? Keep reading to find out.

Allows You to Raise Rental Prices

Investing in a multifamily property is a great way to make extra income, especially in today’s rising market. According to Forbes, renters are now increasing their prices by at least 30% in desirable cities. This can help protect your portfolio against inflation because your initial fixed mortgage rate does not change.

Use Tax Benefits to Offset the Effects of Inflation

Real estate provides tax benefits that can help offset the effects of inflation. For example, in the United States, real estate investors can deduct depreciation expenses from their taxable income. This deduction helps to reduce the amount of taxes owed and ultimately results in more money being available to reinvest in real estate investments.

Sell Properties for Higher Prices

As prices increase with inflation, the value of real estate typically goes up, which means that if you were to sell your property, you would be able to get a return on your investment that is higher than the rate of inflation.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

Are REITs a Good Investment in 2022?

Are REITs a Good Investment in 2022?

Are REITs a Good Investment in 2022? 1280 850 m5wyrwy4t888875

Are REITs a Good Investment in 2022? MRA Answers

When it comes to investments, there are many options to choose from. One option that is growing in popularity is investing in REITs. But, what are REITs? And, more importantly, are REITs a good investment in 2022?

In this blog post, MRA Capital Partners answers these questions to help you decide if REITs are the right investment for your portfolio.

What are REITs?

REITs, or Real Estate Investment Trusts, are a type of investment that allows you to invest in real estate without actually owning any property. REITs are bought and sold on stock exchanges, just like any other type of stock. When you invest in a REIT, you become a shareholder in the trust. The trust then uses the money you invested to purchase or finance income-producing real estate properties.

Key Benefits of REITs

One of the main benefits of investing in REITs is that they offer high dividend yields. A dividend is a distribution of profits that are paid out to shareholders. And, because REITs must distribute at least 90% of their taxable income to shareholders each year, they offer some of the highest

dividend yields in the market. For example, the average yield for REITS was approximately 2.9% in 2021. That is nearly double the 1.3% average yield of stocks in the S&P 500.

Another benefit of investing in REITs is that they are a relatively low-risk investment. This is because REITs are required by law to diversify their holdings. This means that they cannot put all of their eggs in one basket, so to speak. To reduce risk, they must spread their investments out over multiple properties and sectors. This diversification helps protect investors from losses if one particular property or sector were to experience a downturn.

Deciding if REITs are Right for Your Portfolio

So, now that you know what REITs are and some of the benefits of investing in them, you may be wondering if they are still a good investment. As always, the answer to this question depends on your individual investment goals and objectives.

However, at MRA Capital Partners, we believe that REITs can be a great addition to any portfolio. They offer high dividend yields and relatively low risk, making them an excellent option for income-seeking investors. So, if you are looking for an investment that can provide you with consistent income, REITs may be the right choice for your portfolio.

Finding Opportunity. Delivering Res

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

Expand Your Real Estate Portfolio with MRA Capital Partners

Expand Your Real Estate Portfolio with MRA Capital Partners

Expand Your Real Estate Portfolio with MRA Capital Partners 1280 850 m5wyrwy4t888875

How MRA Capital Partners Can Expand Your Real Estate Portfolio

Do you want to expand your real estate portfolio but don’t know where to start? MRA Capital Partners is here to take your portfolio to next level.

As a privately held boutique real estate investment company, we invest in value-add and cash-flowing real estate investments throughout the United States. Our real estate investment strategies are focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. We acquire multifamily properties below replacement cost and add value through strategic capital returns.

Read on to learn about the real estate strategies we offer our accredited investors.

Lighthouse Fund

Lighthouse Fund

MRA Capital Partners’ flagship “Lighthouse Fund” is a high-yield asset-backed portfolio focused on current income investments in both debt and preferred equity. It also makes Private Debt interest-only loans, secured by both commercial and residential real estate nationwide.

Opportunity Strategy

Opportunity Strategy

MRA Capital Partners’ “Opportunity Strategy” focuses on capital appreciation and income potential from long-term real estate investments throughout the United States. We acquire these value-add and cash-flowing commercial real estate and real estate development opportunities by actively pursuing acquisitions and joint ventures, which can include:

  • Multifamily
  • Student Housing
  • Senior Living
  • Supermarket-anchored
  • Investment-grade-Retail
  • Office
  • Medical
  • Industrial
  • Mixed-use
  • Storage
  • Land Development
  • Hotels

Join Our Preferred Investor Network

Ready to expand your real estate portfolio? Sign up to join MRA Capital Partners’ preferred investor network and be one of the first to find out about our next offering. If you have any questions about our real estate investment opportunities, don’t hesitate to send us a message.

Real Estate Syndication vs Fund [Investment Differences]

Real Estate Syndication vs Fund [Investment Differences]

Real Estate Syndication vs Fund [Investment Differences] 1280 850 m5wyrwy4t888875

How to Achieve Diversification Goals Investing in Real Estate Syndication vs Fund

When it comes to real estate investing, there are two main options: syndication or a fund. Both have their own unique benefits, so it can be tough to decide which is the right choice for you.

Today, we’ll compare and contrast real estate syndication vs fund investing, and help you decide which option is the best strategy for achieving your diversification goals!

Real Estate Syndication

With real estate syndication, you are pooling your money with multiple investors to invest in high quality properties and projects. This can be a great way to achieve diversification and expand your portfolio to include assets you normally wouldn’t be able to afford or manage on your own. Additionally, because you are investing in a pool of properties, you don’t have to worry about picking them– the real estate syndicate manager will do that for you.

Real Estate Fund

A real estate fund is a partnership between an investor and a real estate company. The real estate company uses the funds to purchase, manage, and develop real estate projects. This means you do not have to directly own or manage the properties. Investors will earn a return on their investment from the profits of the real estate company.

This type of investment strategy can be used to finance a variety of different types of real estate projects. For example, real estate funds can be used to purchase office buildings, retail shopping centers, industrial warehouses, or residential apartments. Real estate funds can also be used to finance the development of new real estate projects such as hotels or golf courses.

Which is Better for Achieving Your Diversification Goals?

The answer depends on your specific goals and circumstances. If you are looking for a hands-off investment where you don’t have to worry about picking the wrong property, then a real estate syndicate is the better option. However, if you are looking for more diversity and want to invest in multiple properties, then a real estate fund is the better option.

No matter which option you choose, make sure you do your research and talk to a financial advisor to ensure you are making the best decision for your unique circumstances.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

4 Tax Benefits of Real Estate Investing

4 Tax Benefits of Real Estate Investing

4 Tax Benefits of Real Estate Investing 1280 850 m5wyrwy4t888875

4 Tax Benefits of Real Estate Investing

Real estate investing is a smart move to diversify your portfolio, but did you know it also provides tax benefits? Whether you are experienced in real estate investing or just getting started, it’s hard to beat the tax advantages real estate can provide.

Today, we’re going to be exploring some essential strategies you can utilize. But remember, it’s always important to consult with your own personal tax advisor before implementing them.

Cost Segregation Study

Over time, assets like real estate properties lose value. As a result, investors can use a cost segregation study to their advantage during tax season to legally maximize their after-tax returns. According to the IRS, the useful life of residential properties is 27.5 years, meaning you’re able to write-off 1/27th of the value of the property each year. If you’re in the commercial real estate industry, commercial properties are 39 years, which allows you to write-off 1/39th of the property’s value each year. This rule lets investors decrease their taxable income and reduce their liability up until their properties have fully depreciated.

Short-Term & Long-Term Capital Gains

When you sell a real estate property for profit, you may be subject to a capital gains tax. This is a tax on the difference between what you paid for the asset versus what you sold it for. A capital gains tax can come in two forms: short-term and long-term.

Short-term capital gains taxes are levied on profits from the sale of assets that have been held for one year or less. If you sell a real estate property for profit and it is considered a short-term capital gain, you will be taxed at your ordinary-income tax rate. For most people, this is a higher rate than the long-term capital gains tax rate.

Long-term capital gains taxes are levied on profits from the sale of assets that have been held for more than one year. If you sell a real estate property for profit and it is considered a long-term capital gain, you will be taxed at a lower rate than your ordinary income tax rate.

Deductible Expenses

When you invest in real estate, you’re able to take advantage of tax deductions. This means that the expenses that are incurred from your operations, management, and maintenance of the property can be subtracted from the adjusted gross income on your tax form.

For rental properties, such tax deductions may include property taxes, maintenance fees, management fees, and mortgage interest expenses. You also have the opportunity to take advantage of further business-related tax deductions if you invest in real estate with an LLC or limited partnership. These include:

  • Travel expenses
  • Mileage expenses
  • Advertising fees
  • Office space
  • Business meals
  • Business equipment

Pass-Through Deduction

If you own a real estate property that collects rent, you can take advantage of the pass-through deduction tax benefit. This tax benefit lets you deduct up to 20% of the qualified business income on your taxes since rental income is considered a QBC. It is important to note that in 2025, this provision is set to expire under the Tax Cut and Jobs Act of 2017.

Finding Opportunity. Delivering Results.

MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.

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