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What are risk-adjusted returns, and why do they matter in real estate investing?

Risk-adjusted returns measure the reward you get for the level of risk you take. In investing, higher risk should mean higher rewards—but that hasn’t always been the case.

In the past, multifamily investments often came with:

Higher risk for lower returns.
Variable-rate debt and shorter-term loans.
Overly aggressive assumptions on rent growth and exit strategies.

But in today’s market, we’re seeing a shift:
✅ Lower leverage.
✅ Fixed-rate loans.
✅ Safer, more conservative projections.

This means lower risk with higher returns—a win-win for investors. Just make sure you’re working with operators who understand the current market environment and make smart, informed decisions.