So many of my investors who attended my investment seminars learned that buying multi unit apartment buildings is a better investment strategy than buying single family homes.
Our investors learned the art of leverage; spread risk with multi renter's and when to trade up using tax deferred exchanges. As a result, while other investors are being foreclosed on their single family home investments, our investor properties are holding up to the changes in the market. As a matter of fact, we are excited that our rental units are filling up with foreclosed homeowners renting our units.
Think about it. How often do you see an apartment building in a foreclosure situation. I saw one in the recent foreclosure auctions held in San Mateo. The reason, the investor bought the building at the peak pricing levels and then could not get the rents high enough for the building to support itself. On top of that, I speculate that the investor had no property management skill sets and did not know what they were doing. The investor who bought it at auction forked out $285,000 cash! It needs about $70,000 in repairs to bring it up to par. What a deal! The investor (probably someone I taught) essentially bought the building at 1999 pricing; once fix up; he will support a loan about $355,000. If you know anything about cash flow. My worksheet is screaming Cha Ching! Monthly cash flow of about $2,200 a month. Potential rent income of $4,700 minus debt and expenses of approximately $2,500. Way to go!
But back to the investors who bought single family homes. Several years ago, I often heard arguments about buying a pretty new home versus an old apartment built in the 60's. The common argument - "why should I invest in an older apartment when I can buy a new home". Well, all of these investors missed the boat! You see, its all about leverage. I argued that pretty does nothing to my pocket book and that cash flow is king! Your one renter Vs my four renters, I can afford to have a vacancy.
Our investors are excited. We all feel like we did in the late 90's and early 2000's. Time to start adding to our investment portfolio's. Enough said. Want to know how to invest the smarter way? I'm easy to find. ww.jesserosete.com or freeinfo-reports.com
Our investors learned the art of leverage; spread risk with multi renter's and when to trade up using tax deferred exchanges. As a result, while other investors are being foreclosed on their single family home investments, our investor properties are holding up to the changes in the market. As a matter of fact, we are excited that our rental units are filling up with foreclosed homeowners renting our units.
Think about it. How often do you see an apartment building in a foreclosure situation. I saw one in the recent foreclosure auctions held in San Mateo. The reason, the investor bought the building at the peak pricing levels and then could not get the rents high enough for the building to support itself. On top of that, I speculate that the investor had no property management skill sets and did not know what they were doing. The investor who bought it at auction forked out $285,000 cash! It needs about $70,000 in repairs to bring it up to par. What a deal! The investor (probably someone I taught) essentially bought the building at 1999 pricing; once fix up; he will support a loan about $355,000. If you know anything about cash flow. My worksheet is screaming Cha Ching! Monthly cash flow of about $2,200 a month. Potential rent income of $4,700 minus debt and expenses of approximately $2,500. Way to go!
But back to the investors who bought single family homes. Several years ago, I often heard arguments about buying a pretty new home versus an old apartment built in the 60's. The common argument - "why should I invest in an older apartment when I can buy a new home". Well, all of these investors missed the boat! You see, its all about leverage. I argued that pretty does nothing to my pocket book and that cash flow is king! Your one renter Vs my four renters, I can afford to have a vacancy.
Our investors are excited. We all feel like we did in the late 90's and early 2000's. Time to start adding to our investment portfolio's. Enough said. Want to know how to invest the smarter way? I'm easy to find. ww.jesserosete.com or freeinfo-reports.com
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