Become a passive owner of
Multifamily Real Estate.
We provide investors with strong risk-adjusted returns by acquiring and repositioning value-add multifamily properties in the Greater South Texas metropolitan area.
The basics of multifamily investing
How does it work?
We raise capital from investors to purchase multifamily properties that have great upside potential. We then “force appreciation” (add value) to the building by conducting renovations, improving management, and increasing occupancy. After we increase the property’s value, we sell it for a profit – providing higher than average returns to investors.
Why Multifamily Properties?
At its core, an investment in multifamily real estate is an investment in the basic need for shelter. People always need a place to live.
Partnering with us gives investors access to the many benefits of multifamily properties.
Forced Appreciation
Multifamily properties have the opportunity for forced appreciation, since they are valued on income generation (higher income = higher value). Increasing income and decreasing expenses forces the property to increase in value, which provides significant returns to investors.
Powerful Risk-Adjusted Returns
Over the last 25-years, multifamily real estate provided the highest average annual total returns of any commercial real estate asset class with the second-lowest level of volatility.
Low Risk of Default
Multifamily properties produce monthly rents, with the risk of default spread among multiple tenants. A single tenant represents a relatively small percentage of overall income, and minor changes in occupancy will not significantly impact cash flow.
Tax Deductions
The unique use of depreciation and cost segregation to accelerate depreciation capture produces the most favorable income tax treatments of any asset class. Other tax benefits include deductions, capital gains offset via 1031 Exchange, ability to invest from tax-deferred retirement funds, and opportunity zones.
Portfolio Stability
Over the last 20 years, core commercial real estate, in general, and multifamily buildings, in particular, have outperformed the stock market in terms of overall returns and lower volatility.
Passive Income
The rental income can exceed the mortgage payment and all other expenses, providing steady cash flow to investors.
Our Leadership Team
JD Kumala and Carlos Monroy started Padua Partners after recognizing the challenge for everyday investors to build wealth through real estate.
