How To Invest In Real Estate
Learn how to supplement your investment portfolio with passive multifamily real estate investing to achieve predictable, permanent wealth.
37th Parallel Properties is a real estate investment firm that helps investors reap the benefits of long-term, high-quality real estate ownership. We have a track record of proven success with over $1 billion in multifamily transactions and decades of real estate and portfolio management experience.
Real estate investing is an attractive option for those looking to diversify their investment portfolios, generate income, reduce their tax burden, and benefit from long-term capital appreciation.
However, before embarking on your real estate investment journey, it is crucial to establish your investment goals, evaluate your resources, and determine your desired time commitment. Also, consider your risk tolerance, time horizon, and financial objectives. These factors will play a significant role in deciding whether investing in real estate fits your portfolio.
Once you’re ready to start investing in real estate, select an approach that aligns with your goals. There are two primary approaches to real estate investing: active investing and passive investing. Understanding the differences between these two methods is crucial to determining the best strategy for your investment goals, time availability, and risk tolerance.
Active real estate investing involves direct participation in the management and day-to-day operation of the property. Investors often take on the roles of landlords, property managers, or real estate developers that buy and flip properties. This hands-on approach requires significant time, knowledge, and effort.
Passive investing generates real estate income without directly involving the investor in property management. Instead, they invest through private real estate investment funds, REITs, or crowdfunding platforms. Passive investing offers real estate exposure without the responsibilities and time commitment of managing properties.
Are you an accredited investor who wants to learn more about how to invest in real estate, and are interested to see if it might be right for you? We invite you to schedule a free 15-minute introductory consultation. With a 100% profitable track record and over $1 billion in real estate transactions, our real estate investing experts welcome any questions you might have.
Earn better returns by investing in multifamily real estate. Investors who diversify into multifamily real estate outperform those who don’t. Direct multifamily real estate has outperformed the S&P by more than 60% since 2000. Using the “20% rule” where 20% of your portfolio is invested in alternatives like multifamily real estate helps earn greater returns and reduce volatility.
with Real Estate
with S&P 500 Index
Real estate return data is from the NCREIF Property Index (NPI Index), while S&P return data is from Yahoo Finance. Real estate return data should not be used to estimate returns of 37th Parallel Properties investments. While the NCREIF Property Index (NPI Index) represents the total return for private commercial real estate properties (across multiple asset types) held for investment purposes, all 37th Parallel Properties investments are private commercial multifamily investments and can vary in performance.
Primarily derived from net distributable income from the properties held in the Fund. Paid Quarterly.
The Fund’s portfolio will be diversified across several multifamily assets within select attractive markets.
We intend to select investments that provide the opportunity to achieve long-term capital appreciation through value-add and operational improvement initiatives.
Proven Inflation Hedge
Multifamily has outpaced inflation by 6.8% on average over the past 22 years.3
The Fund will take advantage of available tax structuring to create opportunities for income tax deferral and long-term tax reduction for its investors.
Low Stock Market Correlation
The Fund invests in direct multifamily investments that typically have lower correlation to the broader equity and fixed income markets.
Direct Fractional Real Estate
Investors have the potential to receive direct flow-through benefits from assets held by the Fund. Quarterly reporting will provide detailed information on the performance of all assets throughout the Fund term.
Investing in multifamily apartments offers numerous advantages for investors seeking to diversify their portfolios and generate stable income. As an investment in the basic need of shelter, multifamily apartments are always in demand. The economies of scale when managing multiple units leads to lower per-unit expenses while providing a consistent cash flow. Multifamily investing offers lower volatility and diversification with a low correlation to traditional investment assets like stocks or bonds.
37th Parallel’s approach to non-recourse lending, LLC structured investments, and robust insurance coverage protects investors from the legal and financial exposure of active ownership. Plus, these properties also allow for considerable tax advantages for investors.
You must be able to trust that what you invest, you’ll also be able to get back.
Multifamily real estate investing offers returns from multiple sources with quarterly dividends.
Increase income over time through rent growth, lowered expenses and property improvements.
By increasing rent, improving the property and reducing the principal, your equity can increase steadily over time.
Investments have the ability to “cascade up,” increasing cash yield or equity growth at liquidity events every 4-6 years.
Once you understand how multifamily investing works and the historically strong demographics supporting this asset class, we believe you’ll see what we see – that multifamily apartments should be a fundamental component of your investment strategy.
37th Parallel Properties has created a library of webinars, resources, educational guides, and blog articles to help educate potential and current investors on how real estate investing can work for them.
As a confirmed investor, you’ll have access to every new project we offer. During the review process, you will be able to review detailed market and property information to help you understand if the specific investment is right for you.
We recently started raising for the 37th Parallel Fund II, with a $40MM – $80MM offering size that focuses on Multifamily Core+/Value Add. This Fund will focus on 13 markets with attractive demographic factors, strong tenant demand, supply constraints, and exit liquidity.
Using a secure online investment platform, we communicate with you at every step of the investment process. As a confirmed investor, you will be able to:
Receive clear, consistent, and transparent reporting on a quarterly and annual basis, so you are comfortable with the progress of your apartment investment.
Passively partner with a team of proven multifamily professionals and asset managers who are directly aligned with your investment interests
Receive a unique combination of tax advantages only available to income-producing multifamily real estate investors
Using a secure online investment platform, your funds move from your account(s) to a dedicated 3rd-party escrow account then directly to the property closing. We communicate with you at every step of the investment process.
“As a long-time realtor, I tried for years to find investments to create passive income for my retirement. I’ve invested in single family homes only to experience negative cash flow month after month while dealing with all the hassles of being a landlord. By investing with 37th Parallel I’ve finally been able to create a positive cash flow and passive income. I’m still investing in real estate, which I truly believe in, but I don’t have to manage the properties myself. Since realtors don’t have 401(k)‘s or pensions, it’s up to us to create our own retirement income. I only wish I’d found 37th Parallel years ago. I’m very happy with my investments with them so far and will continue to invest with them for my future.“