I’ve heard time and again that an investor’s greatest fear is losing their money.   The negative feeling from losing 30% of your investment far outweighs the positive feeling from earning a 30% return on your investment.  This is an interesting psychological phenomenon.  This brings me to the primary reason why Green Bison Capital likes multifamily investing in large apartment communities so much…Preservation of Capital.  Capital preservation is a critical characteristic of apartment investing.  Everyone needs a place to live, and this long-term demand will not waiver.  The macro trends in the U.S. are towards an increase in renters versus home owners.  This is evidenced by two generations.  Baby boomers are retiring and downsizing.  Millennials want their mobility.  Investing in apartments has proven over a long history to be resilient during recessions and not nearly as volatile as the equity markets.  The S&P 500 lost 56% of its value in the 2008 financial crisis (between October 2007 and March 2009).  However, the default rate on loans financing large multifamily properties (Fannie Mae, Freddie Mac) after the 2008 financial crisis was less than 1.0%!