Why Multi-Family Real Estate
We like multi-family for the same reason that 90% of millionaires like it.
More money has been made in real estate than in all industrial investments combined.
Long Term Security
Commercial real estate has historically outperformed the S&P 500 by a slight margin. Further, multi-family REITs have outperformed office, retail, hotel, and healthcare REITS as of late. This is partially due to the fact the multi-family housing is recession resistant.
Appreciation
Commercial real estate is generally bought with the buyer(s) intending the asset to appreciate. In fact, our target market of Arizona achieved a 23.8% appreciation rate in 2020 alone.
Highly Fragmented
Did you know an estimated 10,000 baby boomers are retiring each day? With the baby boomer property owners now reaching retirement age, there’s a plethora of motivated sellers – some of whom we’re probably negotiating with right now. Approximately 70% of the multi-family industry is individually owned.
50-75% profit margins
Very few industries can boast higher profit margins. Especially when you consider the fact that we will be operating the units as short term rentals. What were once healthy profits in a safe sector are set to double once the transition from an LTR to an STR is complete. Our ability to find great deals can move this number up even higher.
Smart Leverage to Increase Returns on Equity
With real-estate, multiplying money is possible when you (1) find and choose the right deal that can achieve high appreciation and (2) have a team that can properly operate the units. Why? Simple: leverage. We expect to be able to buy a $10M property with $2M to 2.5M of capital. Excluding the cash flow, higher profits as an STR and other benefits gained over our long-term hold of the asset, appreciation on a $10M property would be – by definition – approximately 4X greater than the appreciation on $2.5M property.
The List Goes On
(1) Tax write-offs from depreciation, (2) High interest-to-cap-rate spreads, (3) Massive profit increase opportunities (4) Arizona is one of only 6 states to offer protection from local short-term rental regulation. (5) Most of the properties we target are off market (found via industry networks we’re a part of and effective acquisition tactics) – thus, purchase prices are easier negotiated and broker fees are avoided,
Acquisition Attributes
If you are a broker, agent or owner looking to sell a property, please email us ay info@bloomliving.co or fill out the general inquiry form at the bottom of the page.
The attributes we look for in an acquisition candidate include:
- 4+ units
- In a growing metropolitan area
- No HOA properties
- All cash closing preferred
Leadership
Jake Yates
Founder/President
Kier Remiersma
Real Estate Operations
Rod Tuazon
In House Legal / M&A
Giacomo Puccini
Business Ops/STR
Michael Morrissey, MBA
Real Estate/STR
Chris Gelfuso
Accounting
Invest With Us
As we transform the multi-family housing industry via world class operational procedures and next level care for our guests, our mission is to provide investors access to deals that have the traditional safety of multi-family investments, while also providing a more lucrative upside than a traditional property. We do this all without investors having to find the deal, fund the deal, close the deal, manage the property, find a buyer for the property when selling, and everything else in between.
Most investors don’t have access to a team of financial, legal, real estate, and property management professionals to make sure everything runs smoothly. This makes it impossible for most individual and institutional investors alike to really reap the rewards of real estate investing. Along with providing the best quality of stay to our guests, we started Bloom Living to give investors (from our family & friends to massive foreign funds) access to lucrative deals in the multifamily industry.
To inquire about investing please email us at info@bloomliving.co or fill out the invest form and we will get back to you.