How to Mitigate Risk in Multifamily Investment

Posted on April 20, 2020

A winning chess board symbolizing the mitigation of multifamily investment risk

The very nature of the word “investment” implies risk.

Risk can cause potential investors to invest less or not at all – which is a loss for not just those receiving the investment but denies the potential investor the profits that could be.

That’s why at CGI Strategies, we encourage our investors to arm themselves with the best resource of all – knowledge.

When considering a multifamily investment, the usual suspects, of course, should all be considered:

  • Market risk
  • Interest rates
  • Potential deterioration of the property

But the biggest consideration of all by a potential investor should be the regulatory laws that govern any investment.

You need to do your research.  City and state ordinances are regulations change monthly and greatly impact the multifamily investment scene.  Keeping on top of these changes and taking some key steps will greatly diminish your investment risk.

We recommend keeping a diverse portfolio, especially when it comes to location.  Not putting all of your capital into one area allows you the flexibility to pivot as regulations appear.

Make sure that you’re involved in the communities where your investment lies.  This will keep you ahead of any potential changes that may happen and give you time to adjust.

By adopting these simple strategies, your multifamily investments will be your most profitable.

More CGI+ News & Press

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

CGI+, the investment and development firm founded by Gidi Cohen, has filed updated plans for a major apartment complex in central Hollywood. The project would be located at 1830 North Cahuenga Boulevard, at the corner of Cahuenga and Franklin Avenue, a prime Hollywood location a few blocks north of the Hollywood Walk of Fame.

read more
Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

The last year has not been easy for the head of a commercial real estate company. Inflation and the Fed’s response, as well as trends that emerged from the pandemic, have clearly had an impact on the industry across all of the sectors. Besides the effect of, say, ongoing remote work on the beleaguered office asset class or the slowing pace of rent increases in multifamily, these executives have also had to navigate an increasingly difficult capital markets environment. I have some bad news for this group: the near-term future doesn’t look any easier. Enter our selection of Best Bosses this year. This year’s picks were made at least in part based on their resiliency and ability to position their companies for future growth, whenever that might occur. We are confident these strengths will see them through what could be choppy waters ahead.

read more