Investing In Real Estate... What Are The Advantages?
Why Apartment Buildings Are Your Fastest Route To Wealth Creation And Cash Flow
Should I begin investing in real estate?
If so, what type of real estate should I invest in?
These are probably two (of many) questions you are asking yourself if you are considering venturing into the world of investment property.
There are lots of choices when it comes to investing in real estate...
- office buildings
- single family homes
- duplexes, triplexes, fourplexes (anything larger is considered commercial real estate)
- raw land
- industrial buildings
- MHP's (mobile home parks)
- mobile homes
- retail strip malls
- mixed use buildings
So which type of property should you invest in? Well, there are pros and cons to each of course. But if I had to choose one type of property over the others, it would be apartment buildings. Why you ask? Well, hold that thought. I will give you a list at the end of this page. First, let's take a quick look at the...
Advantages Of Real Estate As An Investment Vehicle
You may have heard the statement "More millionaires have been created through investing in real estate than by any other means." Is this statistically true? I'm not sure, but I wouldn't be surprised if this statement is bang on. My personal experience certainly bares this out. So what makes real estate a superior investment? Two main things.
1. Leverage: The ability to borrow a large portion (sometimes all) of the capital necessary to purchase the asset, and use the cash flow from the asset in order to pay off the debt.
2. Depreciation: The ability to depreciate the value of the real estate asset for tax purposes in order to defer (not avoid) paying tax on the profits.
Advantages Of Buying, Holding and Selling Apartment Buildings
Over the past 15 years I have bought, sold and managed several different types of real estate (and always for a profit). My investments have ranged from single family homes to town homes to apartment buildings to other commercial property. But I have to say, investing in apartment buildings has made me the most money over the years. The money has come from two source. Passive monthly cash flow (which is why commercial property is a great addition to a
portfolio) and from gains when my properties have been sold.
Are you interested in learning how to profit from investing in commercial real estate?
If you are, and you want to get started right now, I recommend you pick up a course written by a colleague of mine that
teaches you exactly how to purchase your first apartment property
Still not quite convinced that apartments are the way to go when investing in real estate?
Have a look at some of the advantages below.
So, in my humble opinion, and in no particular order, here are the advantages of investing in apartment complexes...
Become A Commercial Real Estate Investor In Your Spare Time
: One of the biggest advantages of investing in real estate (and particularly apartment buildings), is that you can do it in your spare time.
Apartment Building Financing
: Takes the focus off of you and puts it on the property.
Commercial Real Estate Cash Flow
: Apartment buildings, when purchased and managed properly, have the ability to generate consistent, and substantial cash flows. Many times, even with 100% (or greater) financing in place.
Save Time and Effort With Apartment Building Investment
|Here is an inexpensive "e-course" that I recommend that deals specifically with commercial real estate cash flow. It's called "How Anyone Can Buy Commercial Real Estate" and it is written by a 31 year veteran of commercial investing. (There is a video that plays automatically when you go to the information page so you may want to turn on your speakers.)|
: Concentrate your efforts and leverage your time.
You Can Afford A Property Management Service
: Due to the cash flow that they generate, apt. properties can afford you the 'luxury' of hiring a property management service.
Reduce Your Transaction Costs By Buying An Apartment Complex
: Your goal when investing in real estate should be to maximize your returns. See how lowering your transactions costs can help.
Advantages Of Residential Multi Unit Buildings vs. Other Commercial Property
You Get To Pay Real Estate Investment Tax
: How can paying tax be an advantage you ask? Well, it's not really
an advantage, but it doesn't have to be completely painful either.
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