Why Invest in Real Estate vs. Other Asset Classes?

Looking to diversify your investment portfolio? Investors today face a plethora of options, including stocks, bonds, real estate, and even crypto. Each asset class has its pros and cons, but at Gilberti Group, we believe that value-add multi-family real estate is a particularly strategic investment that offers stability, income, appreciation, and tax efficiency. Let’s explore why real estate deserves a prominent place in a well balanced portfolio for accredited and institutional investors looking to build durable, tax-efficient wealth. 

Stability Means Investing in Real Assets, Not Headlines

If you’ve checked your phone today, you’ve probably read a “breaking news” headline, both about US events and foreign relations. The stock market has a high degree of responsiveness to the news cycle, geopolitical events, and market sentiment. In other words, volatility and public equities go hand in hand. Comparatively, multi-family real estate is a relatively stable asset class.

Over a 20-year span (1999–2018), U.S. core private real estate delivered positive annual returns in 18 out of 20 years, averaging 8.8% annually – significantly less volatile than the S&P 500 during the same period (NCREI). Additionally, private real estate exhibits very low correlation with public markets (~0.09 vs. ~0.64 for traditional private equity), providing meaningful diversification during periods of equity market stress (Fidelity).

Bonds may seem like a stable option, but in a rising-rate environment, their values decline and their income stays fixed. Multifamily real estate adjusts rents over time, acting as a natural hedge against inflation and interest rate risk. Furthermore, property values tend to appreciate over time, making real estate a safe bet for future income. 

Finally, housing remains a fundamental necessity, and therefore there’s always steady demand for it. 

Income You Can Count On

Investing in multi-family real estate is a great way to generate ongoing cash flow, and Gilberti Group strategically targets high-potential multi-family properties that deliver strong rental income streams. 

Stocks primarily rely on capital appreciation. Dividends, when paid, are modest (S&P 500 yield is currently ~1.6%) (YCharts). Bonds provide fixed income, but again, it's limited and does not adjust over time.

In contrast, multifamily real estate offers recurring, inflation-adjusted income. Gilberti Group specifically targets value-add opportunities that deliver both current cash flow and long-term upside through renovations and operational improvements, which further enhance cash flows once the property is stabilized.

Low Volatility Provides Resilience in Every Cycle

With the potential of tariffs and the looming threat of a recession, the market remains volatile. Real estate is a unique investment in that it can offer a buffer against market uncertainty. Multifamily real estate is far less volatile than stocks or speculative assets like crypto because rental income doesn’t fluctuate with the markets, and properties don’t experience the daily price swings seen in equities.

Even during the COVID-19 downturn, multifamily outperformed other commercial sectors – rent collections and occupancy remained relatively strong, thanks to the essential nature of housing (CBRE).

Whereas assets like cryptocurrency can swing 30–50% in weeks, real estate offers predictability and a margin of control. Investors can add value, adjust strategy, and proactively manage risk, unlike holding a stock or token and hoping for a favorable outcome.

Why Multi-family Real Estate is a Strategic Investment Choice 

At Gilberti Group, we focus on value-add multi-family real estate. Unlike traditional private equity, which often back-loads returns and depends on growth in private companies, real estate private equity investments provide both interim cash flow and capital appreciation, anchored by tangible assets.

Real estate also provides investors with tax advantages that other asset classes do not, including depreciation deductions, 1031 exchanges, and other incentives that allow for tax-efficient wealth accumulation. 

Against a background of ever increasing market volatility and macro uncertainty, multi-family real estate remains a time-tested, cash-flowing, inflation-hedged, and tax-advantaged investment. It isn’t speculative, it’s foundational. 

Gilberti Group is committed to sourcing, operating, and optimizing investments that generate superior, risk-adjusted returns over time. We don’t chase trends, we build equity. If you're seeking durable income, long-term appreciation, and disciplined execution, investing in multifamily real estate with Gilberti Group may be your most strategic next move.