Multi-family in the USA - everything you need to know, opinion - Ofir Harari
* Multi Family *
Hello everyone
Many ask me about investing in a multi-family, especially in the US.
Is this a safe and solid investment or a very risky one?
Multi-family is a common passive investment that many people invest in - and are not always aware of For all the risks involved.
In this investment the investor is part of a group that buys a property that contains a large number of apartments / offices, in the utopian (highly optimistic) situation the investors enjoy a monthly income (relative to the amount invested relative to other investors) and expect a significant profit within a few years.
So what do entrepreneurs / marketers not always tell us?
A. The property does not belong to you and is not registered in your name in the registry - you do not have direct ownership of the property (and do not tell me about a second mortgage - between us it is a joke of safe)
B. Most often, these investments are structured bank financing of 70% or more. The advantage… More
Multi-family in the USA - everything you need to know, opinion - Ofir Harari
Tal Levi
Hi Ophir, we do not really know and I "came across" in this post you wrote, I must point out that you wrote very inaccurate things here and I refer to investing with an entrepreneur and not a marketing company.
Suppose section A is incorrect in definition, and does not exist in an investment with an entrepreneur
Section B is completely inaccurate and reaching a state of full or partial capital write-off is a situation that can happen in a situation where there is unprofessional management (and if this is the case then it really does not matter if it is a multi, single, stock or any other investment)
Section C - Here too, there are inaccuracies, when an investor enters into a multi-transaction he knows the schedules well, he knows well when the realization is supposed to take place and with a good and responsible entrepreneur he knows what will happen in extreme situations where realization is not possible. Of realizations or realizations in loss, I must say I see the exact opposite, multifamily investments have been and continue to be profitable due to low interest rates and incredible commercial financing!
Again, God forbid I do not intend to produce any argument here but you are presenting here a very very unbalanced and in my opinion incorrect picture that makes people might think wrong about the product.
Disclosure: I am a multifamily entrepreneur and currently manage about 1490 units in 4 countries. I experienced successes and experienced losses and mistakes so it was important for me to write things out of a teaching place
I would be happy to have a discussion and discussion if interested 🙂