The Financial Structure Of Multifamily Real Estate Investing
Multifamily housing is a 3-trillion-dollar industry—that’s about 14 percent of GDP—and provides more value and jobs to the economy than even the tech industry. There is no question that multifamily housing is a critical piece of the country’s infrastructure. It provides residences for millions of families and individuals. That’s why we all have an interest in supporting it and why it’s a great investment in good economic times and bad.
Two government-backed financial institutions, Fannie Mae and Freddie Mac, maintain the stable stream of funding that supports multifamily housing. Loans from financial institutions enable buyers—developers, investment firms, and so on—to purchase properties. Because multifamily housing is critical infrastructure and a good investment, it’s worth understanding some of the underlying financial details.
Read more via this Forbes published article.