Why Multifamily Investing is primed for the recession

I often get asked how I am able to find the time to go to so many conferences and meetings…

… in addition to running my Pediatric orthopedic practice,
… helping busy professionals create passive income through real estate investing, and
… ensuring that our existing properties are performing well for investors.

My answer is simple: you make time for the things that will make your life better.

You may have heard me quote the late, great Jim Rohn: “Formal education will make you a living. Self-education will make you a fortune.”

That was never truer than it is today.

Educating ourselves on the economy, inflation, interest rates, and other investment opportunities, will help me make Fortis Equity Group investors and I a fortune.

Last month, Fortis Equity Group spent several days in ‘The Big Easy’ at the 47th Annual New Orleans Investment Conference.

It’s publicized to be the longest running investment conference in the country and had a phenomenal list of speakers such as Brian Lundin, Danielle de Martino Smith, Russell Gray, Robert Helms, George Gammon, and many, many others.

There was much talk about the current state of the economy— where it’s going, interest rates, geopolitics, and how all of those affect investing in many different asset classes.

Here are some important points I learned:

1. We are currently in a recession and it’s going to get worse before it gets better
   
2. The Fed will continue raising interest rates over the next 18 to 24 months. This will cause the economy to continue to stall, as spending and investing in many sectors stalls.
   
3. As most world currencies are currently weaker than the dollar, our US dollar is relatively strong globally. This causes the price of gold and silver to decrease and a great buying opportunity to purchase a great inflation hedge, at a discount.
   
4. Certain investments such as real estate and specifically multi-family investing will continue to perform very well during a recession or high inflationary times.

In this recession, why will multifamily investing do well?

As interest rates increase, mortgage payments will increase and homes will be less affordable. That means that more people will rent for now and postpone the American dream of home ownership, until rates come down.

Also, as the price of everything increases with inflation so does rent. Higher rents mean higher income for the property, which causes apartment complexes to increase in value.

Once interest rates decrease a bit and the investment market becomes more active again, our properties will be well-positioned for a cash-out refinance or sale, at significant profit for our investors.

So we will keep educating ourselves and purchasing properties in markets with strong fundamentals. Stay tuned for upcoming investment opportunities with Fortis Equity Group.

Along those lines, we are finalizing due diligence on our last investment offering for 2022, and will be announcing it very soon. This will also be the last time you can take advantage of 100% depreciation as the rules change in 2023.

If you are interested in learning more about the incredible Phoenix multifamily market or this last investment opportunity in 2022, sign up for our Advance Notice List and I will send you the investment offering as soon as it is finalized.