10 Things Others Don't Want You To Know About Apartment Riches
In these tough economic times, with home ownership down, multifamily rental demand is up - way up. This article cites the top 10 reasons why you should be buying apartments today - using none of your own money.
Owning multifamily properties offers you the best of both worlds. Here are 10 advantages of owning multifamily properties.
1. You can outsource your property management to professionals. This enables you to have more free time.
2. You can buy with none of your own cash. It is easier to get financing on multifamily properties than single family homes. The more money you borrow, the less that banks look at your credit. You can raise other people's money to cover all cash requirements.
3. Apartments are made to cash flow even with nothing down which means that there is one roof with maybe twenty apartments under it as opposed to one house with one roof. Houses are really created to be flipped to homeowners. You can convert them to rental properties but apartments are designed to be income-producing properties.
4. You receive better leverage of your time and effort. It is much easier to maintain a 10 unit apartment building than it is to maintain 10 single family houses.
5. The value of income properties is based on the income. It is a function of the net operating income and you can create value by raising the rents and cutting the expenses. You will then know how to invest your money and your time.
6. Less competition. There are fewer people out doing multifamily deals than single family deals because they lack specialized knowledge and they lack mindset.
7. There is less risk. You have less risk from the standpoint that you have multiple tenants and multiple revenue streams. An apartment is a business. When you lose your single family home tenant, you have to feed the house mortgage. There is mitigated risk through apartments.
8. Non-recourse financing. The more money you borrow, the easier it is to borrow. When you get to borrowing two million dollars and above, it becomes non-recourse financing and this means the asset is the sole security for the loan. There is no one personally guaranteeing the loan.
9. Condo conversion. You can convert your multifamily apartment buildings into condominiums. It is a different strategy because you are putting all of your cash forward and then pulling out. It is not a long-term buy and hold strategy.
10. The sub prime lender bust. With sub prime mortgage lenders falling out of the market, there are people who cannot qualify for houses and foreclosures are up. This means that the demand for rentals is going up.
Buying multifamily properties allows you to have low risk and great return for your investment. If you are looking for an investment vehicle, multifamily property investing is a great way to go.
Think you need big cash and experience to do apartments? Well, Lance Edwards is living proof that you can start with multifamily investing - just like he did and using none of his own money. Utilizing the multifamily apartment strategies he now teaches and writes about, Lance retired from his job in July, 2005. For more information on how you can achieve financial freedom using other people's money, visit www.ApartmentWealthMachine.com
Click the XML Icon Above to Receive Finance Articles Via RSS!
