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MANY PRACTICING PHYSICIANS Are Behind for Retirement The 2016 US Physicians' Financial Preparedness report by the American Medical Association shows that nearly 40 percent of practicing physicians are behind on retirement. Investing passively in multifamily apartment real estate provides a great avenue to retire or be financially independent within five years or less. Who does not want that? MD News recently sat down with James Kandasamy from Achieve Investment Group, the San Antonio Apartment Association (SA A A) award winner for Property of the Year —Rehab . Q : Why is investing in the multifamily asset class better than investing in hotels, medical offices, warehouses, stocks, self storage or land? A: Favorable Investment Metrics + Multifamily investments potentia lly ca n prov ide 16 –20 percent overa l l inter na l rate of ret ur n (IR R) for a five-year cycle with a quarterly cash flow pay out. Furthermore, real estate va lues double every seven to 10 years. Everyone needs a shelter + Per Ma slow 's h iera rchy of need s, multifamily provides shelter, which is a fundamental basic need of human beings. Due to this fact, multifamily investments are significantly resilient to economic fluctuations as everybody needs a place to stay. Force Appreciation + Multifamily va lues are based on net operating income (NOI). A sk i l led operator of multifamily housing can force appreciate the va lue by execut- ing a well-pla nned business pla n to increase NOI. For exa mple, you ca n buy a mu ltifa mi ly proper t y that is not per for m i n g 10 perc ent below its potentia l and execute a business pla n to increa se NOI by 15 percent to increase your investment return equity by 50–80 percent. B l a c k S w a n E f fe c t T h a t c r e a t e d Renters Nation + After the 2008 housing bubble burst, many millennia ls and baby boomers have decided to become renters. The new t hought t hat renting is ea sier than owning a home pushed up renta l demand to a higher level previously not seen in the nation's history. Invest With IR A + Yes, you ca n invest using your IR A af ter moving it to self-directed IR A or checkbook I R A . The process is easy and we have many investors who do this. Q : Physicians usually fall into a high personal income tax bracket. Are there any tax benefits to investing in multifamily housing? A: Absolutely, this is one of the powers of multifamily investments. Persona l income ta x reduction with depreciation paper loss + These depreciations will be shown as a paper loss and flow through your persona l income ta x as a deduction. T he h i g her depreci at ion mea n s a higher personal income ta x deduction for multifamily property investors. + The mu ltifa mi ly a sset cla ss is t he only asset class to get higher depre- ciation per yea r a s it 's depreciated over 27.5 years. All other asset classes such as office, warehouse, industria l, sel f-st ora ge, et c., a re depreciat ed over 39 years + The recent 2017 Ta x Cuts a nd Jobs Act ta x reform law introduced "Bonus Depreciation" for multifamily housing investments that a llows much higher depreciation in yea r one for a ssets acquired after September 2017. Q : Physicians are busy people. How can they invest? A: You can get a ll the multifamily rea l estate benefits by being a passive inves- tor using syndication. In multifa mily syndication, the person putting together the deal is called a sponsor, and investors investing passively a re ca lled passive investors. The benefits are: + You don't do any work! It's passive! You can use the sponsor's time and skills to invest passively a nd still reap a ll the benefits outlined above. + Since you are passive investors, there is zero liability to you. + Multifa mi ly at tracts nonrecourse, long-term loa ns. That mea ns if the investment goes south due to some issues, the lender can't come after the investor's persona l assets. Bad boy carve outs apply. To learn more about multifamily invest- ments or to join one of our educational road trips visiting multifamily proper- ties , plea se send an email to james@ achieveinvestmentgroup.com or visit achieveinvestmentgroup.com. n 1 2 1 2❱❱❱❱❱ F i N A N C i A L C H E C K U P