Investing in multifamily property can be a great way to build wealth — not only can a good portfolio of rental properties generate stable income, it has the potential to appreciate in value over time. While knowing when and what to buy is obviously key to growing a profitable portfolio, many overlook that knowing when to sell an investment property is one of the most valuable skills in investing. Sell discipline is one of the core components of BENA Capital’s conservative capital strategy and risk-management framework.
What we’ve observed: Housing stock has been low the last couple years, and in our target markets - where demand has far exceeded supply - this means high values at present. However, at the national level, the number of homes for sale recently saw its first annual uptick since 2019. Borrowing rates have also been trending up, and if they keep climbing, that can sideline buyers and start to create downward pressure on real estate prices.
What that means: We never stop monitoring the market. Our Fund’s key investment factors center around macroeconomic fundamentals, submarket dynamics, and capital market conditions. Each investment starts with a price objective and an investment case that outlines and then tracks progress to attain that objective. We are able to acquire properties at or below market prices due to our cash offers. We buy quality properties in locations with growth potential and strong employment bases. Many times the properties have been poorly managed and have higher than market vacancy rates or require capital improvements. Once re-positioned, these properties generate stable cash flows for investors year after year. Once stabilized, we sell the property for a healthy gain. We periodically re-assess our price objectives to ensure it aligns with the current market situation, and we manage the Funds’ portfolios with protecting and growing our investors’ capital top of mind. So, when that exit point comes along, we don’t hesitate — BENA Capital has a proven track‐record of capturing premium returns for our investors.