Our Approach

Invest for today and the future

Unless you are happy getting 1% on your savings accounts,
you will want to read on

Our Goal:

Our goal for the proposed investments is to create Passive Income through the capture of monthly rents.

Definition of Passive income:

Passive Income is income received on a regular basis (monthly generally), with little effort required to maintain its flow. Simply put, is when you don’t work for money, money works for you.

Our Goal:

Our goal for the proposed investments is to create Passive Income through the capture of monthly rents.

What is the benefit of Passive Income:

As none of us are getting any younger, it is wise to plan and arrange for cash flow for our later years, especially as part of our retirement strategy. Passive income provides that and much more to investors.

Some people may be so successful at creating passive income, that they create enough cash flow to retire on it, yet others may choose to only create enough passive income to supplement their Active Income, while others may choose to accumulate and grow their portfolio and postpone withdrawals until later, taking advantage of the compound effect. In essence, passive income is extra cash flow to be used as you so desire.

Strategy:

Passive Income can be attained in many different ways. Some of those are Savings accounts, Money Market accounts, Certificate of Deposits, Dividends from Stock and Mutual Funds, Income Producing Real Estate and others. We focus exclusively in Income Producing Real Estate.

Our strategy consists in the search and acquisition of multifamily properties, that offer value added opportunities. This type of properties may or may not be cash flow positive on day one, but with minimum investment can increase their return above and beyond the yield presented at the time of acquisition. Having said that, the properties we propose to invest in generally provide income on day one.

We focus on multifamily properties for a variety of reasons:

Since we work with investors who are thinking about their retirement, we chose this type of real estate investment because it is one of the most conservative types. That is not to say that returns can’t be attractive, quite the contrary, returns can and often will surpass the returns of other conservative investments, especially in the long run.

The following are our goals:

Short Term: As explained above, in the short term, we look to provide passive income through the collection of rents which should increase every year*. As the debt obligation remains stable, via the use of fixed financing, the revenue stream from rents should increase year over year.

Mid Term: As the principal is reduced year after year, the equity accumulated can be unlocked and used to expand the portfolio. On a case by case scenario, we’ll discuss the possibility of refinancing and either lowering the debt obligation, thus increasing returns or unlocking the equity built up for further investment. Leverage is a very powerful tool that can be used in Real Estate.

Long Term: Since planning and investing in Income producing properties would provide passive income in your retirement years, you would not deplete your assets and therefore may want to dispose of them in a variety of ways. In the long term planning, properties can be passed on to your heirs, your favorite charity, etc.

Please consult an estate planning professional.

Who does take care of the day to day operations of the investment?

Our team will manage the day to day operations of the property, the collection of rents, payment of utilities, repairs, services and all other necessary duties. A monthly report will be furnished to you with all of the related information.

Who is this investment for?

If you agree with the concept of Passive Income, have some extra cash available, and are looking for attractive returns with a conservative approach, this type of investment may be for you.

Real Estate should be a part of everybody’s portfolio. We at Index Real Estate Investments, LLC. do not advocate the investment of 100% of your savings onto Real Estate or any other investment vehicle for that matter. Planning for retirement is serious business and as time goes by, it becomes much more real. Social Security and Medicare are in such financial trouble, that counting on them for retirement may be a mistake. Passive Income could replace and/or support whatever retirement benefits are available to you when your time comes to retire, whether from a 401K plan or from Social Security and Medicare.

One of the question most people have a problem with is: how much will I need to have saved to enjoy a comfortable life after I retire?

There is no simple answer to that question, as nobody knows exactly how long we are going to live. There is a well-established rule of thumb that suggests that for your money to last approximately 30 years (assuming you retire at 65 and project to live until 95), you should only withdraw 4% of your total savings the first year and only adjust for inflation in subsequent years. Of course this is just a rule of thumb. Since your investments can go up or down every year, you should adjust your withdrawals accordingly. There is also the question of what happens if you outlive your projection of living until 95? Who will pay your bills then? What happens if you need to withdraw more than the 4%? What if we hit a prolonged bear market? and many more unknowns.

Depending on when you invest in relation to your retirement year, investing in multifamily will likely return more than 4% per year at the time of your retirement while not reducing the amount of principal, quite contrary, your principal in the long term most likely will increase as well due to debt reduction and property appreciation. While not a guarantee, property appreciation is likely in long term real estate investments. Also, the withdrawals here are not hinged on your projection of living to 95. While nobody can guarantee yo will live pass 95, investing in real estate may increase the chances you will not outlive your savings**.

One important fact you need to be aware of is that this type of investment ties liquidity. This is one of the reasons why we suggest diversification. The rewards, however, can be very attractive. Other advantages are tax benefits. Please consult your tax advisor for more information on your specific situation.

*on a regular market, rents historically increase yearly with CPI on non rent control assets

**There are inherent risks in investing in real estate.

This is an asset type than can fluctuate in value up and down. There is no guarantee as to the future value of your investment.

All investments are subject to risk. Diversification does not ensure a profit or protect against a loss in a declining market.

Index
Maybe you are not concerned with retirement just now, and maybe you are willing to invest in other assets with more risk, but capable of producing higher returns. Whether for your own use or for net investment, the team at Index will work with you to find the right property.
Contact Us
Pablo Kupersmid
Pablo@IndexREI.com
Cell. 818-254-5315

Gabriel Gold
Gabriel@IndexREI.com
Cell. 818-571-5519

14541 Delano St
Van Nuys, CA 91411