Tuesday, February 22, 2011

Residential Apartments as an Investment

Residential Apartment Buildings vs. Other Real Estate Investments

This is one area of the real estate market that is not in any danger of busting as though in a bubble any time very soon.

Investing in residential apartment complex is a smart idea for anyone looking to get in on the real estate market and make a profit.

These kinds of residential apartment complexes are often the mainstay housing areas in any city.

These are the tried and true areas of living spaces that are not going to fold and explode the way ‘McMansions’ and other cheaply constructed “luxury” homes did just a few years ago.

If you are interested in investing in residential apartment complexes, the first thing to do is to research any potential markets that you might want to buy property in.

You need a team in your corner, our team.

Visit the city, if it is not the city that you already live in, and be sure to check out all the residential apartment complexes that are candidates for your investment money.

Use your team to help you.

You will want to make sure that you choose a complex that is in a desirable area of town that will not lose value during the time in which you have your investment money tied up in this property.

Ideally you want to find a city with strong growth potential in which people are planning to move there for years to come.

Again use your team.

The more people want to be in an area, the more the value of these properties will go up.

Your team can help you.

Another way to try to profit off investing in residential apartment complexes is to invest in a building in which renovations are planned.

Renovations always drive up property values, so if you find something like this when you are researching your options, it is in your best interest to sign off and get a piece of this while you still can.

As always, in any investment opportunity, be sure to research all aspects of the business before you go into it or put money down.

Use your Team.

Read all contracts carefully to make sure you understand all the terms and conditions.

Your Team will help you with this!

When looking at the differences between investing in multi-unit Residential Income Properties and Single-Family Residences (SFR) or condominiums, we find that advantages such as cost, time, overall effort, savings, and reduced stress favor investing in Residential Income Properties in many ways.

Then, consider the exponential benefits of buying a group of units in a single transaction versus buying several units in multiple transactions.

When buying an apartment building, the cost-per-unit is lower. The greater the number of units in the building, the larger the cash flow, and most likely, the larger the profit will be when the building sells.

Your Team can help with the CAP Rent Rate formulas.

When all is said and done, the economy has little effect on an investment in Residential Income Property.

Regardless of what is happening on Wall Street or in the overall business environment, people need a shelter.

One wonders: When will all this end? When will real estate stop appreciating in value year after year, decade after decade?

The answer is simple – theoretically, NEVER!

Why? Because so long as the population is expanding, and so long as people continue to move into our neighborhoods, the demand will always be there.

This is why it’s smart to take the time to learn how to invest for the future, now.

Consult with YOUR team.

One should lay a new foundation for growth as soon as possible, without delay.

Smart investors among us are imagining and planning their future now by applying all their knowledge into investing activities today, not tomorrow.

There’s a reason why some of the world’s richest people in America have made their fortune in real estate.

And, they made it by investing in commercial real estate, not in residential real estate.

It is just like a real business with a balance sheet, P&L and a cash flow that it must produce to survive, to be valuable and grow.

Positive cash flow happens only when a property produces more income in rents than the owner’s costs to maintain and service the property.

While the market is taking a beating, a positive cash flow property is still producing an income (passive residual income).

It will continue to do so every passing month until one day the market starts coming back – at which point the owner can put his property on the market and sell with further profit if he chooses. The downtrend never affects the investor.

While everyone else was concerned about the housing market, the investor was generating an income and building an even higher equity position in his respective investment property.

The benefits of multi-unit Residential Income Properties over other types of real estate such as SFR and condominiums are countless.

Let us show the benefits, and when you compare, you too will want to consider Residential Apartment Buildings to grow your real estate wealth. for future gains.

Your Team is here and ready to serve you!


John Hacker and Andre Saffarina

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