Why Have a Real Estate Investment Portfolio?

Are you ready to turn your dreams into reality? Real estate investing may be the key to unlocking your desire to retire early, explore the world, or provide for your family. Whatever your aspirations, building an investment portfolio will help you achieve them. Take control of your financial future and build the life you've always wanted with this investment strategy! 

 

What is a Real Estate Investment Portfolio? 

A real estate investment portfolio is a collection of real estate assets you own for the purpose of generating income or deriving appreciation. This means you can invest in a variety of real estate assets, like residential rental properties, multifamily apartment communities, commercial buildings, vacant land, and even real estate investment trusts (REITs). 

As an investor, generally the goal when building a portfolio is to achieve long-term financial benefits. This includes earning a steady stream of income and seeing your investments appreciated over time. To reduce your risk and protect your investments from market volatility, it's important to diversify your portfolio by investing in different types of real estate assets and different markets. 

 

Why Have a Real Estate Investment Portfolio? 

It's no secret that real estate investments have been gaining popularity among investors who want to diversify their portfolios and build long-term wealth beyond paper assets, and it's not hard to see why: there are many reasons why investing in real estate can be advantageous. 

Real estate investing allows investors to generate passive income from rental properties. By investing in rental properties, investors can receive regular rental income without having to actively work for it. Secondly, real estate investing offers numerous tax benefits. For example, rental income is generally subject to lower tax rates than ordinary income, and real estate investors can take advantage of various deductions and credits to reduce their tax liability. It can also provide diversification benefits. Real estate markets do not always move in tandem with other asset classes, such as stocks and bonds. This provides a hedge against market volatility. Lastly, owning real estate can help build equity over time. As the property value appreciates and the mortgage is paid down, the investor's equity in the property increases. This can provide a valuable source of wealth and financial stability over the long term. 

 

How to Build an Investment Portfolio? 

Set Goals 

Before diving into real estate investing, consider your goals. What do you want to achieve with your investment? Do you want to earn passive income? Build long-term wealth? A combination of both? By setting clear goals, you can better determine the real estate investing strategy for you. Remember, when it comes to real estate investing, there's no one-size-fits-all approach, so be sure to tailor your strategy to fit your unique goals and circumstances. 

 

Do Research 

Once you have set your financial goals and decided on the type of real estate investment strategy you want to pursue, the next step is to conduct thorough research. It is essential to learn about the various types of real estate investments available in the market and identify which ones align with your goals. For example, you may be interested in investing in rental properties to generate passive income, or you may prefer to invest in commercial properties for long-term capital appreciation. 

In addition to understanding the different investment options available, it is also important to research the local real estate market, analyze the market trends, and identify potential opportunities to make more informed investment decisions. Some factors to consider when researching the local real estate market include vacancy rates, rental prices, property values, and economic conditions.   

 

Start Small 

Starting small is a great way to gain experience and refine your investment strategy without putting yourself at undue risk. For example, you might consider starting with a single rental property, and then gradually expanding your portfolio as you become more experienced. This approach allows you to learn the ropes of real estate investing and adjust as needed without overextending yourself financially. 

 

Monitor Investments

Continuously monitoring your real estate investments is crucial for your portfolio’s success. Real estate markets are constantly evolving, which can significantly impact your investments. By keeping a close eye on your portfolio, you can identify potential risks and opportunities, and adjust as needed to maximize returns and minimize risks. 

 

Want to Build Your Investment Portfolio? Contact CF Capital 

Building your investment portfolio is a great way to generate passive income and build long-term wealth. By conducting thorough research and continuously monitoring your investments, you can make informed decisions and maximize your returns. However, this requires diligence and careful consideration. When you pool your resources with other investors and partner with an experienced syndicator, you access higher-quality multifamily properties that may not be available to individual investors. This investment strategy offers many benefits, including the potential for regular cash flow, tax advantages, and a hedge against inflation. Want to learn more? Get in touch with CF Capital. 

From the Desk of CF Capital: February Investor Report

Hello Friends and Investors, 

The 2023 sprint is now kicking into high gear - how did your first 30 days of 2023 go? The fact that it's already February is a reminder for us to course correct where appropriate and focus on what we've committed to for the first 90 days of the new year, along with the more grand vision we have for this year. While time passing can sometimes feel like a sprint, we're reminded that in the business of real estate investments, it's really a marathon. We're focused on long term relationships, long term decisions, and long term values. Your relationship with us is really the most important, and one that drives our thinking day in and day out. 

In the short term, the market is still absorbing much of the rapid shift that was initiated last year. While we're seeing a bit of an uptick in new acquisition opportunities since the turn of the year, we anticipate that the most compelling opportunities will begin to surface later in the year. That still could be later this quarter, and time will certainly tell. Nevertheless, we remain nimble and prepared to strike on game-changing opportunities to provide attractive investments for you to protect and grow your wealth during volatile times alongside CF Capital. We remain patiently aggressive. 

Throughout whatever stage of the market cycle we're in, our focus at CF Capital is on driving value to you, our highly valued investor partners. With that, we'd love to hear from you. What are the biggest dangers or challenges you're facing with your investments and finances this year? What do you see as your most powerful opportunities? How about your greatest strengths? Respond to this email and let us know exactly what's going on in your world from these angles, so we can support your most optimal outcomes. If you'd like to set up a virtual or in-person meeting, we'd love to make ourselves available for you - simply schedule a time with us via the link below.  

Prior to wrapping up this month's dialogue, we wanted to update you on a few things going on in our world, aside from the day-to-day blocking and tackling in the business and our prime focus on 'Elevating Communities Together.' Here's what else has been going on in our world: 

  • Louisville Business First did an expose on our new headquarters. Take a sneak peek here.

  • Elevate Podcast has a brand new podcast studio within the new CF Capital HQ. Some massive shows are coming out over the next month to help you elevate your real estate investment performance and lifestyle through mindset, mind expansion, and personal development.

  • Tyler recently has interviewed several highly influential thought leaders including Benjamin Hardy (Author of Who Not How, The Gap and the Gain - both with legendary entrepreneurial coach Dan Sullivan - Willpower Doesn't Work, and 10X is Easier Than 2X - coming soon - along with other highly impactful books). This episode, along with several others, are some of the very best and most impactful productions we've ever produced. Buckle up and get your notebook ready for some life-changing breakthroughs.

  • Bryan and Tyler, along with our marketing team, created a brand new presentation that shows you how to "Elevate Your Financial Security and Prosperity Through Apartments". If you want to learn exactly how CF Capital can help you reach your goals, you should absolutely check out this on demand webinar (coming soon!).

In summary, we deeply appreciate your partnership and interest in furthering your partnership with CF Capital. We're confident that exciting days and opportunities are on the near term horizon, and that for the long term, we will continue to capture upside together through course correction, adaptation, and expansion. 

In Partnership,  

Tyler & Bryan 

From the Desk of CF Capital: January Investor Report

Hello Friends and Investors,
It is with great enthusiasm that we say Happy New Year to you! Reflecting on the last 12 months, we're grateful to have gone through so much change at CF Capital and in our personal lives. Beyond that, we've all experienced so much rapid volatility from the macro-environment; a year we will remember for sure. While there's a great deal of market uncertainty looming in 2023, out of all uncertainty there's opportunity, and out of all chaos there's order. It's important to check in with our relationship with volatility, because it can either crush us or be a catalyst for our most impactful opportunities of our lifetime.

"The quality of your life is directly related to how much uncertainty you can comfortably handle." - Tony Robbins

Let this be your reminder to embrace the turbulence this year. Choppy seas create skilled sailors, and distress improves us all as investors. Challenge helps us improve our team, our due diligence, our underwriting, our deal sourcing, our asset management, our construction management, our communications, our leadership and so much more. Without challenge, we atrophy. There's no doubt that there are and will be challenges in 2023, even some not yet on our radar. Our culture and mindset is one that is rock-solidly committed to overcoming difficulties and is committed to delivering results for our partners.

Reflecting back on wrapping up 2023, December was filled with momentum for CF Capital. Some of the highlights included:

  • Our Leadership Team Held Our Annual Offsite (We Run CF Capital on EOS)
  • Our Team and Spouses Enjoyed a Holiday Celebration Dinner
  • Our Team Conducted a Day of Service at Our Local Ronald McDonald House
  • We Made Significant Strides in Property and Company Goals and Budgets
  • We Successfully Transitioned Two Properties' to a New Property Management 3rd Party
  • Team Members Celebrated the Holidays with Family in Arizona, Florida, Alabama, Tennessee, and Kentucky

So it's a new year. Does that mean it's a new market? Time will tell. In 2022, the historic speed at which the Federal Reserve raised rates led to tremendous market disarray, and a disconnect between buyers and sellers in our multifamily space for many months. Generally, commercial real estate markets are slow moving, and this type of rapid change to a critical factor in real estate investing, interest rates, were not fully integrated throughout the markets for quite some time. We anticipate that the calendar change to 2023 will more solidly imprint in sellers' minds that the previous market cycle is now truly history, and we're now operating in a completely new landscape. Further, it is anticipated that market distress is on the horizon, with a meaningful percentage of loans expiring this year on deals that may not be candidates for the needed proceeds on a refinance or may not hit investment metrics on a sale. We continue to scour the market for quality assets - we're mainly focused on B-Class assets at this stage of the market cycle - with a compelling story. While we were very active in December pursuing new investments, no new deals were officially secured (while two came very close) that were appropriate to acquire and offer to you for investment consideration at this time. We are optimistic that Q1 2023 will be more ripe with the right opportunities for your consideration.

We also remain hyper-focused on optimizing our current portfolio during this time. We're mid value-add on several assets right now, and a significant amount of our team's focus is on ensuring we're performing to projections. With a myriad of market headwinds, we're doubling our efforts and focused on results. After all, we're in the business of protecting and growing partner capital, because our relationship with our investors is for the long-haul.

To start off the new year, we've got some exciting things happening on the horizon. For one, Bryan and Tyler will be attending the annual NMHC in Las Vegas at the end of January/first of February. If you'll be attending and we have not yet scheduled a time to meet, please reach out to Rachael via email at [email protected].

Don't hesitate to reach out to discuss your goals for your real estate investments for 2023 and beyond. We always appreciate the opportunity to connect with you directly to learn how we can support you further.

Here's to wishing you a wonderful start to 2023!

In Partnership,

Tyler & Bryan