xhv8mzw7ge79waga35o97s2wbzpfr6 Recession-Resistant Investing: Does it exist?

Recession-Resistant Investing: Does it exist?



I just wanted to share with you a couple of pointers today on why I feel like fourplexes are a very recession-resistant asset.


Nothing is recession-proof, but when we can adequately deal with the terms of our financing and the income streams associated with the asset then we have something that's a little bit more recession-resistant.


So when we talk about a fourplex it really is a unique asset because you get many of the same benefits that you get with a large apartment building and due to the diversity of your income streams but you're not tied down to the same kind of financing that you would get on a commercial asset. Nothing wrong with apartment buildings I'm just saying that if you're a smaller investor looking for something that’s a little more recession-resistant, you’d like a fourplex.


Number 1:


You'd get true 30-year fixed-rate financing on your asset…


This means typically the lowest interest rates and the most flexible term. If the economy gets bad at 5 or 10 years, if you got your income there nobody's expecting you to pay off sell or refinance the building. If you can make your mortgage payment, you keep the asset and you can ride through these short-term problems that happen in a recession.


Number 2:


You have four streams of income.


When you compare this to a single-family property, when you’re vacant you’re 100% vacant because you only have one tenant. But with a fourplex, you’ve got four tenants

If you’re 100% vacant that’s a “you” problem, right? You need to lower your rents, you need to adapt to the market… but when you’ve got that four streams of income coming in, you at least have something coming in to service that dip to get you through a hard time.


I would never say a fourplex or any asset is recession-proof but fourplexes definitely recession-resistant.


So if you’re concerned about that it could be a good source of income and investment for you.

295 W Center St, Suite A

Provo, UT 84601

(801) 758-8970

(Brokered by RE/MAX Equity & partners)

CONTACT US

FIG DISCLAIMER: No investments are guaranteed to result in profits. Net operating income, cap rates, and internal rates of return are subject to fluctuation and may experience a wide range of change, including the potential for operating losses. Factors affecting investment returns include, without limitation, changes in interest rates, tenant vacancies and defaults, property management expenses, repair and maintenance costs, HOA expenses, litigation, insurance rates, and relative strength and weakness in the local and regional economy. Past performance is not a guarantee of future returns. FIG does not provide tax or legal advice, and none of the statements or information on our website or sales materials should be construed as tax or legal advice. All investors are encouraged to seek advice from their own tax and legal professionals. All estimated returns on investments in FIG projects are subject to change and may be significantly different from actual financial performance. FIG is a brand used for the purposes of marketing. FIG is not an actual company but is used to brand the investment strategy used by those marketed on this website. © 2020 FIG & RE/MAX Equity