(208) 749-3821
WHY APARTMENTS
WHY APARTMENTS
Traditionally, Real Estate is “Recession Proof”
What this means is that whether we are in a robust economy or a recession, people need a place to live. Over the last 70 years, despite several recessions, real estate values have continued to go up. Often time values have increased even during the recession.
Multifamily Real Estate is Even More “Recession Proof”
As the interest rates rise and the economy goes down, people often lose jobs and income, foreclosures go up and housing affordability goes down, but people still need a place to live. When they can’t afford a home, they turn to renting. As this happens, the demand for multifamily housing soars, making it a safe haven for investors.
Take Advantage of Increased Tax Benefits
Our Team only acquires stabilized (above 80% occupancy) and cashflow positive apartment building investments. This allows our investors to make healthy returns while showing a loss at the end of every year.
Take advantage of 3 types of depreciation that allow investors to lower taxes:
- Standard or Straight-line Depreciation
- Accelerated Depreciation
- Bonus Depreciation
Cost segregation studies are performed on all of our assets. Tax benefits also pass through to our investors via annual year-end reporting on K1s issued for the preceding year.
Real Estate in General is Often Referred to as “Inflation Proof”
This is because when inflation increases and the value of our dollar decreases, the cost of goods and services go up. This includes real estate. So when you invest in multifamily housing, your investment is often much safer than non-asset backed investments such as stocks, bonds and mutual funds, which can be highly volatile due to investor emotions.
Multifamily Housing is More Economically Stable Than Single Family Housing
Single family housing can fluctuate greatly with the current market comparables as well as supply and demand. If your neighbor loses a job and has to leave town quick, he/she may sell the house lower than current market value to get out of it quick. This low price effects the comparable value of every house in the neighborhood and prices fall. Or if there is a high volume of houses to sell, but few buyers, prices fall.
Multifamily housing values are different. These values are based on how much income they produce. So if rents increase or input costs go down, they produce more income and have a higher value to be sold at a larger price. So purchasing the right property, for the right price, and having the right asset manager that can add value to make the property produce more income while lowering costs is what we specialize in at Pivot Capital Partners LLC.
Investing in Real Estate Has Tax Advantages
Our teams perform cost segregation studies on all of our assets. This ensures that we can take advantage of all accelerated and bonus depreciation possible so that our investors have the largest legal write-offs possible. This often results in healthy returns for our investors while showing very low taxable income and sometimes even a loss. These tax benefits are provided to our investors via annual year-end reporting on K1’s issued for the preceding year.
See for yourself why Investors love working with us!
See for yourself why Investors love working with us!
INFORMATION LINKS
CONTACT US
Phone: (208) 749-3821
Hours: Monday-Friday: 8 am to 8 pm MST, Closed Holidays
Location: Twin Falls, Idaho
