property type

Multi-family rental properties

Why multi-family rental properties, aka apartment buildings, can be great investments

Owning rental real estate can be a smart approach to diversifying your investment portfolio and generating steady income. With most investments (stocks, art, jewelry, bitcoin, etc.), you buy something hoping it will appreciate in value so that it can later be sold for a profit. With rental homes, by generating positive cash flow through rental income, you profit regardless of whether you later sell the profit for a profit (or not).
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Housing is a persistent need (people will always need a place to live), which makes it one of the most stable types of real estate investments available.

Key benefits

Economies of scale

Multi-family housing generally has a lower "cost per door" than single-family, which ultimately increases profitability. With multi-family properties, the renovation, repair and maintenance costs are distributed across the full property.  This makes the cost per unit is lower than that of single family. Furthermore, management is typically more effective and profitable, and improvements can lift the value of all or multiple units (not just one).

Control and stability

The value of a multi-family property is more controllable than that of a single family property. Why? Multifamily properties are primarily valued on net income, not comparable sales. As landlords, we have the freedom to adjust rents, increase operational efficiency and augment income with services such as laundry or internet. Conversely, the valuation of single family is largely based on supply and demand factors (as viewed through comparable sales), which tend to be much more volatile.

Leverage

In what other investment (outside of real estate) can you borrow money from the bank, pay that loan back with money from someone else (the tenant), and keep the difference for yourself (minus expenses of course)? Leverage can allow you to generate an outsized return without outsized risk.

Inflation

Inflation works with you, not against you. The majority of big expenses in multifamily ownership (mortgage, property taxes) stay fixed for the majority of the time you own the property. Meanwhile, as the value of money decreases due to inflation, the price of goods and services (including rents and home values) increase.


Why now?
Multifamily investment has traditionally been reserved for institutional investors or ultra high net worth individuals due to its larger capital requirements, financing realities, tenant screening and property management needs.

Coral divided the traditional multifamily investment opportunities into smaller chunks (shares), so that accredited investors can easily access institutional-level service.
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