Toronto-based Real Estate Investing and Management company Atalla Group Inc. (AGI) receives more reliable returns on their investments by investing and managing in apartment buildings. These multi-family rental assets are a safe investment that provides monthly income, holds value during economic downturns, and has lower risk compared to digital assets.
Apartment buildings are defined as residential multi-family properties with 5 units or more. Apartment buildings are valued based on their performance and Net Operating Income (NOI) contrary to residential homes which are defined by the average price of surrounding houses. This distinct difference gives investors, lenders, and landlords more control over the valuation of their assets. Apartment buildings also hold their value because of the income tenants provide, on a monthly basis, through rent payments. Surprisingly, these assets can generate greater returns rather than a decrease during a recession. The spikes in living costs often cause a greater demand for rental housing, especially for buildings in areas with a low vacancy rate. Atalla Group Inc. strategically acquires most of their properties in locations with low vacancy rates and in areas poised for greater future demand.
Another benefit of investing in apartment buildings (5 units or more) is they provide more financial security due to apartment buildings having a higher number of tenants under one roof compared to residential properties (below 5 units) and therefore can carry a greater number of vacancies without severely affecting the NOI and positive cash flow of the asset. Maintenance and operating costs are also reduced because all the apartment units are centrally located under the same roof.
Given the current uncertainty in the market, rental assets like apartment buildings can be acquired at a discounted price. This provides a unique window for negotiation and little competition to collect and add several properties to the portfolio. Atalla Group Inc. pursues properties more aggressively during these periods because they can negotiate from a position of power and use these savings to transform these underperforming assets into cleaner, safer homes for their tenants.
Once they acquire the building, AGI starts renovations with the goal of cutting down on operational costs, and to attract great tenants who will care for the property like their own home. They often install cameras, proper lighting, security systems, and create a good rental community in what was a previously underperforming asset, which results in their unit values rising and naturally their profit with it.
Atalla Group Inc. uses the latest tech available through their property management software with portal access to investors, tenants, and vendors. This software includes all important relevant information readily available to their investors about their property such as financials, work orders, tenancy and more. Investors can be as active or as passive as they want in their involvement in the management of the asset. This provides a complete transparency relationship with their investors giving them peace of mind that all activities related to their investments are a click away.
Atalla Group Inc. also has a full, in-house construction team and a well-established vendor network allowing them to be able to share volume discounted material, at-cost contractor labor, and other benefits to their investors. Additionally, since AGI are equity investors alongside their partners, it's in their best interest to keep their fees to a minimum and to sustain high-performing assets. There are very few investments out there that can provide the kind of returns apartment buildings can, but these types of assets require time, effort and experience to effectively manage. By working with Atalla Group Inc, you have the ability to add great assets to your investment portfolio, or your clients’ portfolios, without worrying about all the usual challenges that can come with being a landlord.
Media Contact:
Name: Marco Atalla
Email: [email protected]
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
