Two Reasons Apartment Investing Should Not Be Feared
Apartment investing is one of the most overlooked and most feared types of real estate investment. However, that fear is drastically unfounded and has caused many investors to miss the primary advantages. With all the negative press about the economic recession, many people are scared of investing in real estate at all. The smart investors however, realize that mulitfamily is where the real millionaires are made.
Apartment investing is one of those things that just seems astronomical to the common person. They think that it takes millions of dollars to get a property like that and they would never be able to get the money. While it is true that it's difficult to get money for single family houses, its a misconception that you can't get money for apartments. In fact, it's easier than you might think to get the money you need for an apartment. You just have to know where to look and who to ask.
Multifamily real estate offers many advantages. Not least of which is the lessened competition versus single family homes. You do not typically have as many investors bidding up the prices on apartment buildings the way they do with houses. However, if these other investors truly understood how to leverage their time and effort into apartment investing, they would be spending their time elsewhere. Their fears and misconceptions are often misguided however because apartment investing is a very different type of transaction.
It is actually often easier to get the money for larger purchases. The fear that most people have to get over however is dealing with larger numbers up front. Many don't feel comfortable borrowing hundreds of thousands or millions of dollars, even when the math makes sense to show them the investment can put them on the road to retirement.
It requires most people to get out of their comfort zone, which is usually a losing proposition. Although it might be scary, the leverage you gain from an apartment is huge. The price per square foot that you are paying for the property is much lower than if you bought a single family house. However, you now have several units that you can rent out. This creates a huge amount of cash flow for a relatively low initial investment.
Understanding the enormous potential of apartment investing to generate cash flow and equity with lessened risk and economies of scale is the key to creating inter-generational wealth. Getting past the fear of large number is usually the first step. Luckily, it's an easier step than you might realize. - 23200
Apartment investing is one of those things that just seems astronomical to the common person. They think that it takes millions of dollars to get a property like that and they would never be able to get the money. While it is true that it's difficult to get money for single family houses, its a misconception that you can't get money for apartments. In fact, it's easier than you might think to get the money you need for an apartment. You just have to know where to look and who to ask.
Multifamily real estate offers many advantages. Not least of which is the lessened competition versus single family homes. You do not typically have as many investors bidding up the prices on apartment buildings the way they do with houses. However, if these other investors truly understood how to leverage their time and effort into apartment investing, they would be spending their time elsewhere. Their fears and misconceptions are often misguided however because apartment investing is a very different type of transaction.
It is actually often easier to get the money for larger purchases. The fear that most people have to get over however is dealing with larger numbers up front. Many don't feel comfortable borrowing hundreds of thousands or millions of dollars, even when the math makes sense to show them the investment can put them on the road to retirement.
It requires most people to get out of their comfort zone, which is usually a losing proposition. Although it might be scary, the leverage you gain from an apartment is huge. The price per square foot that you are paying for the property is much lower than if you bought a single family house. However, you now have several units that you can rent out. This creates a huge amount of cash flow for a relatively low initial investment.
Understanding the enormous potential of apartment investing to generate cash flow and equity with lessened risk and economies of scale is the key to creating inter-generational wealth. Getting past the fear of large number is usually the first step. Luckily, it's an easier step than you might realize. - 23200
About the Author:
To see how to take advantage of the opportunities in apartment investing, come hear Carlos Vaz tell his story of how he became a multifamily millionaire at age 31 after only 12 months.
posted by X - Men @ 3:56 AM
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