Why the Wealthy Invest in Multifamily Real Estate – And How Anyone Can Start
The Wealthiest investors build their fortunes in multifamily real estate
For decades, the wealthiest investors have quietly been building their fortunes in multifamily real estate. While stocks, crypto, and other asset classes get more media attention, some of the largest investors, hedge funds, and family offices continue to pour billions into apartment buildings and multifamily communities.
Why? Because multifamily real estate has consistently been one of the safest, most profitable, and recession-resistant investments available.
Rod Khleif, a best-selling author, host of one of the top real estate investing podcasts, and a long-time real estate investing coach, explains why multifamily investing has long been a wealth-building vehicle for the rich—and why anyone with the right strategy can get started today.
What is Multifamily Real Estate?
Multifamily refers to any real estate housing that has more than one unit. Most families purchase a single house, and that is referred to as single-family.
Why the Wealthy Choose Multifamily Real Estate
Wealthy people know that the most important assets are the ones that work long-term. Multifamily real estate provides a unique combination of cash flow, tax benefits, appreciation, and risk protection that other investments struggle to match.
Consistent Cash Flow
Unlike stocks, which rely on market performance, multifamily properties generate a steady monthly income through rental payments from tenants. Investors benefit from continuous cash flow that continues regardless of stock market fluctuations.
Massive Tax Advantages
The wealthy understand how to use tax benefits to increase their returns and reduce their tax burdens. Multifamily investors can take advantage of depreciation, 1031 exchanges, and cost segregation to keep more of their earnings.
Appreciation & Equity Growth
Over time, real estate goes up in value. Unlike stocks that can experience sudden crashes, multifamily properties steadily increase in worth while tenants pay down the mortgage—creating long-term wealth.
Inflation Protection
Inflation erodes the value of cash, but real estate investors profit as rents and property values increase with inflation. Multifamily assets provide one of the strongest protections against economic downturns.
Recession Resilience
People always need a place to live, even during recessions. While luxury assets and speculative investments lose value in difficult times, rental housing demand remains strong, making multifamily real estate one of the safest asset classes in any market cycle.
How Anyone Can Start Investing in Multifamily—Even Without Millions
Many people assume that multifamily real estate is only for the ultra-wealthy, but Khleif teaches his students that anyone can get started with the right approach.
1. Leverage Creative Financing & Partnerships
You don’t need millions in the bank to invest in multifamily real estate. Many investors start by raising capital from private lenders, structuring joint ventures, or utilizing seller financing to close deals without using their own money.
“Multifamily investing is a team sport,” says Khleif. “If you find the right deal, there are always investors willing to partner with you. It’s about building relationships and understanding how to structure creative financing.”
2. Start with Smaller Multifamily Properties
First-time investors don’t need to jump into 100-unit apartment complexes on their first deal. Many start with small multifamily properties (duplexes, triplexes, or fourplexes), which can be easier to finance and manage while still offering strong cash flow and appreciation potential.
3. Get Educated & Take Action
The most important step in breaking into multifamily investing is gaining the right knowledge and surrounding yourself with experienced investors. Khleif encourages new investors to:
- Learn how to analyze and underwrite deals
- Network with brokers, lenders, and real estate professionals
- Join mentorship programs or attend real estate investment events
- Take action by making offers and learning through experience
“Most people never get started because they’re afraid of what they don’t know,” says Khleif. “But when you educate yourself and take that first step, you realize that multifamily real estate isn’t just for the wealthy—it’s accessible to anyone willing to learn and take action.”
The Bottom Line: The Wealthy Invest in Multifamily—Now You Can Too
The wealthiest investors continue to build their fortunes through multifamily real estate because it offers cash flow, appreciation, tax advantages, and inflation protection—all in one asset class.
The good news? You don’t need to be a millionaire to start.
With the right education, networking, and strategic financing, anyone can break into multifamily real estate and start building long-term wealth.
Want to learn how to get started? Tune into Rod Khleif’s top-rated real estate podcast, read his best-selling book, or join his mentorship program to take the first step toward financial freedom through multifamily investing.
Visit RodKhleif.com to learn more.
