If you’ve got money to invest, you’ve got a lot of options. So, what are the pros and cons of the stock market? Single family homes? Multifamily syndications? What’s the difference between active and passive investing? And how will the predicted market correction impact each of these opportunities?

Bronson Hill is the Director of Investor Relations at Nighthawk Equity, the investing arm of the Michael Blank organization. Bronson started investing in real estate 13 years ago, building a strong single-family portfolio before he transitioned to multifamily. Now, Bronson is the General Partner for 225 units, and he is passionate about sharing the benefits of passive investing in multifamily syndications.

Today, we switch things up and Bronson interviews me about the options available to passive investors. I weigh in on the downside of investing in the stock market, explaining why the actual return is much lower than what your financial advisor tells you! We also cover the advantages of investing in multifamily syndications, including the below-average risk and extraordinary tax benefits. Listen in for insight around the potential market correction everyone is talking about and learn what we do at Nighthawk Equity to protect our investors from the possibility of a downturn.

Key Takeaways

The disadvantages of investing in the stock market

  • Actual return much lower than published #s
  • Influenced by volatility, fees, taxes + inflation

The downside of investing in single-family homes

  • Susceptible to market cycles
  • Issues around property management

The advantages of multifamily syndications

  1. Below-average risk
  2. Cashflow
  3. Build wealth
  4. Tax benefits
  5. Hedge against inflation

Active vs. passive investing in multifamily

  • Active = find deals and/or raise capital
  • Passive = limited involvement in day-to-day

The market outlook for multifamily

  • Cognizant of possible correction
  • Taking steps to protect investors

How to protect yourself from a market correction

  1. Take on long-term debt
  2. Look for cashflow from Day 1
  3. Set aside and build reserves
  4. Conservative underwriting

Connect with Bronson

Nighthawk Equity

Email bronson@nighthawkequity.com

Resources

Deal Maker Live

What’s the Best Investment? The Stock Market or Real Estate

Doug Duncan on CNBC

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Apartment Investor Network Facebook Group

The Secret To Raising Money To Buy Your First Apartment Building

Get commitments from potential investors so that you can confidently make offers and close on your deals. Enter your email address to get started.

 

DOWNLOAD YOUR FREE EBOOK below

Success! Check your inbox for your free e-book.