Growth And Income
With
Private Investment In Multifamily Real Estate
Why Multifamily?
Multifamily Investing Historically:
- Is A Low-Volatility Asset Class
- Yields Strong Risk-Adjusted Returns
- Can Produce Cash Flow and Capital Appreciation
- Provides Generous Tax Benefits to Investors
more on the benefits of Multifamily Investing below…
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Reward to Risk
Multifamily Investments have historically produced the highest risk-adjusted returns of the major asset classes.
The Sharpe Ratio measures returns compared to volatility (risk).
MULTIFAMILY SHARPE RATIO
- Over 5 years: 1.05
- Over 10 years: 1.59
S&P 500 SHARPE RATIO
- Over 5 years: 0.95
- Over 10 years: 1.07
LONG TERM BONDS SHARPE RATIO
- Over 5 years: 0.71
- Over 10 years: 0.61
Of all the Commercial Real Estate asset classes, Multifamily Investments also historically produce the:
• highest 7-year Capital Appreciation Return
• highest total returns when adding income + capital returns, at 9.05%
• lowest 7-year capital expenditures, at 1.18%.
Stability & Reliability
Even during and after the Great Financial Crisis, Multifamily Investments boasted:
• a foreclosure rate of just 0.4%*
• a peak delinquency rate of just 0.56% (in 2010) for Fannie Mae DUS collateral
• a peak Total Serious Delinquency Rate** of just 0.71% (also in 2010), compared to 4.61% for Single Family Homes.
Sources:
- National Council of Real Estate Investment Fiduciaries (NCREIF)
- The National Apartment Associations publication “Units”. March 2010 : Page 54, and
- Fannie Mae Financial Supplement Q4 and Full Year 2018 https://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2018/q42018_financial_supplement.pdf
- *weighted Fannie Mae and Freddie Mac collateral
- **Multifamily loans are classified as seriously delinquent when payment is 60 days or more past due.
This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read al of the offering documents and attest to reading and fully understanding such documents. Forklift Capital, LLC and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This website should be construed as informational and not as an advertisement soliciting for any particularly purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.
Address
Forklift Capital, LLC
833 Central Ave.
Unit #1723
Highland Park, IL 60035
