Viking Capital Newsletter September 2024

Onward & Upward,

What this is beneficial for our investors: 

• Increased Property Values: Rising confidence in the multifamily sector can lead to higher property valuations, enhancing the long-term appreciation of investments.
• Greater Rental Demand: As the sector gains momentum, demand for multifamily housing increases, leading to higher rental income.
• Stronger Cash Flows: The combination of higher returns and increased rental demand creates reliable cash flows for investors.

Key Takeaways:

• Increased Confidence in Multifamily: Large acquisitions in the sector, like this one, reflect growing confidence in the long-term fundamentals of multifamily real estate, making it an attractive asset class for investors.
• Opportunities in Key Markets: The focus on well-located properties in high-growth areas and surrounding submarkets offers investors diverse opportunities to gain exposure to markets poised for appreciation.
• Navigating Market Cycles: The current market disruption creates openings for savvy investors to acquire core-plus and value-add properties at favorable prices, with the potential for strong returns as the market stabilizes.

With new episodes airing in November, each installment provides expert insights, market trends, and actionable strategies to empower your wealth journey. Featuring engaging interviews from industry professionals and a focus on real-world applications, wealth {un}filtered equips you with the knowledge you need to make informed financial decisions and stay ahead in today’s fast-paced financial landscape. 

Whether you’re looking to enhance your investment strategies or gain clarity on complex market dynamics, this podcast is your path to building lasting wealth. Submit your questions and tune in this November and take charge of your financial future!

Quarterly reports will be distributed at the end of this month. Keep an eye out for them in your inbox.

• What is Cost Segregation?: A tax strategy that accelerates depreciation for real estate, boosting cash flow and reducing tax burdens on rental income.
• Depreciation Breakdown: Multifamily properties usually depreciate over 27.5 years. Cost segregation accelerates this by categorizing items like carpeting, lighting, and landscaping for faster depreciation.
• Key Benefits:
  • Enhanced Cash Flow: Save on taxes now and reinvest for future growth.
  • Time Value of Money: Accelerate deductions and recoup investments faster.
  • Lower Tax Burden: Maximize passive losses and reduce taxable income.
  • Bonus Depreciation: For 2024, we have 60% bonus depreciation on qualified assets, offering significant tax savings on newly acquired properties despite the phase-out of 100% bonus depreciation.