More millionaires have been made with real estate than any other business. Because of the economies of scale, commercial and multi-family real estate offers advantages over their single family counterparts. People will always need a place to live and work whether the rest of the economy is doing well or is in the tank.
Many people assume there is some big secret to creating massive weath through real estate. But whether you're buying single family homes or major multifamily properties, when and how you buy a property are the most critical factors. Whether you get the lowest price or the best terms determines how good the deal actually is. And it's not as hard as many might think.
There are fortunes to be made in properties that have been neglected and are in need of repair. The worse the neglect, the more the rehabilitation needed and the lower the price you can get. If you have a system in place to get the property back into shape you have maximum leverage at the time of purchase and maximum upside at the time of sale.
Once rehabilitation is completed, you have the choice to sell for immediate profit or hold, cash flow and exit at an appreciated price. In economic times like these, when there is a lack buyers in the market, holding the property is the most viable option and often the most lucrative.
Multi-family homes and apartments offer dramatic advantages over single family homes due to large numbers of tenants who are collectively paying off your debt and expenses. If one family vacates, there is only a fraction of the income lost, unlike the scenario if they leave a single family investment.
The time and energy that goes into acquiring and managing single family homes is not dramatically less than goes into managing apartments. However, the rewards of multi-family do dramatically outweigh the rewards of single family due to the leverage, additional safety and size of the monthly income. One must just decide where they would like to invest their own time and energy for maximum results.
Many people assume there is some big secret to creating massive weath through real estate. But whether you're buying single family homes or major multifamily properties, when and how you buy a property are the most critical factors. Whether you get the lowest price or the best terms determines how good the deal actually is. And it's not as hard as many might think.
There are fortunes to be made in properties that have been neglected and are in need of repair. The worse the neglect, the more the rehabilitation needed and the lower the price you can get. If you have a system in place to get the property back into shape you have maximum leverage at the time of purchase and maximum upside at the time of sale.
Once rehabilitation is completed, you have the choice to sell for immediate profit or hold, cash flow and exit at an appreciated price. In economic times like these, when there is a lack buyers in the market, holding the property is the most viable option and often the most lucrative.
Multi-family homes and apartments offer dramatic advantages over single family homes due to large numbers of tenants who are collectively paying off your debt and expenses. If one family vacates, there is only a fraction of the income lost, unlike the scenario if they leave a single family investment.
The time and energy that goes into acquiring and managing single family homes is not dramatically less than goes into managing apartments. However, the rewards of multi-family do dramatically outweigh the rewards of single family due to the leverage, additional safety and size of the monthly income. One must just decide where they would like to invest their own time and energy for maximum results.
About the Author:
Come hear the interviews of Carlos Vaz as he purchased nearly 1,700 units and created over $9 million of equity n his first 12 months. He has has become an nationally recognized expert on multi-family investing and is candidly sharing his methods at www.themultifamilymentor.com
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