David Lindahl

Apartment Buildings Are An Investorís Dream
by David Lindahl

Investing in Apartment Buildings

Your first multi-family property is a critical move in your real estate investing career. Multi-family properties open a huge door of profits for the new and experienced investor to achieve their financial goals.

Million dollar dreams are only an illusion without the proper vehicle to attain it. If you’re a serious investor looking for a way to obtain more wealth without the hassle and risk of building your financial empire one house at a time, then apartment investments are just the thing you’re looking for. With regards to cash flow, apartment complexes are by far, the most lucrative deal that is within the reach of private investors. Here’s why.

Benefits Of Apartment Investments

Competition

There’s less competition. The large cost of the apartment buildings compared to single family residences are enough to keep many investors away from this type of investment. For that reason, this market has considerably less competition. Couple that thought with the fact that the amount of apartment building foreclosures are on the rise, and you’ve got a prime market that’s just waiting to be tapped.

Foreclosures

Apartment building foreclosures are quickly gaining the attention of commercial property investors looking to gain even deeper profits. Investors can attain even better cash flow than if they were to buy an apartment building that wasn’t in foreclosure simply because they will obtain the property for less than what it was worth.

Cash-on-Cash Returns

Higher cash-on-cash returns in comparison to single family homes make apartment buildings the premier opportunity. Obtaining a cash flow of $300 on a single family home is a good starting point for many investors, but with apartment buildings, investors can realize multiplied cash flows because of the sheer number of units you’re dealing with. Even owning a small apartment complex with 10 – 12 units can literally put thousands of dollars in your pocket with just one property.

Increased Demand

There’s an increased demand for apartment rentals. Foreclosures happening across the nation have caused many families to have to downsize. More than likely, they’ll end up in apartments because it’s cheaper to rent than a house. For the investor, that means that they won’t end up sitting on an empty apartment building.

Apartment Multi-Family Investing

Positive Cash Flows

Investors can profit instantly from positive cash flows. Apartment building investors profit just because of the number of units they’re dealing with. In the case of a single family home, any profit you receive can easily be eaten up by taxes, insurance, and ongoing maintenance. With apartments, those expenses can more easily be spread over the number of units you have.

Lower Risk

Apartment buildings have lower risk. If your single family home goes vacant, do you have the cash flow to sustain it and if so, for how long? The advantage of having multiple units is that if one goes vacant, you’ve got other units that can take on the burden. Earlier, I mentioned that there’s an increased demand for apartments. This trend makes the risk even lower compared to the single family market.

Property Management

Multiplied profits enable investors to hire property managers who can handle rental issues and maintenance issues. The cash flow you’ll be generating from an apartment building enables you to leverage your time leaving you with the opportunity to look for more deals or enjoy the time you have.

Seller Financing

Apartment building owners are more willing and able to provide seller financing. While this doesn’t apply to all apartment owners, there are still considerably more opportunities to obtain seller financing compared to single family homes.

Again, I do want to mention that I don’t advocate 100% loan deals, but if the numbers work and the deal is solid, then it might be something to consider.




David Lindahl
David Lindahl has rehabbed over 820 houses in just under 10 years and currently owns over 7,400 apartment units. Starting out as a struggling landscaper with no experience in construction.

Within the first 14 months, Daveís apartment buildings created a positive cash flow of over $10,300 a month for him and his family and with in three and one half years Dave became a multi-millionaire.

Dave Lindahl, author of 2 #1 bestselling books, Emerging Real Estate Markets, and Multi-Family Millions. His third book is through Donald Trumpís organization, and is called Commercial Real Estate Investing 101: How Small Investors Can Get Started and Make It Big.

Among other publications David has been featured in Readerís Digest, Creative Real Estate Lifestyles, AOL and Kiplinger Magazine.

Dave Lindahl, with no Real Estate experience, created systems that allowed him to create enough monthly positive cash flow to retire within 3.5 years.



David Lindahl Products (1)
EventsApartment House Riches Bootcamp


Copyright Notice
Copyright 2002-2017 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted
without the express written permission of the Author and/or REIClub.com.

Back to Top

Free Newsletter
Name:
Email:

Article Options
Printer Friendly Page
Send This to Friend

Author's Articles
3 Landlord Tips and Benefits Of Joining Real Estate Clubs
3 Ways To Make It Big In Real Estate
5 Reasons To Buy Multi-Family Investments
5 Tips for Negotiating Your Commercial Property Deal
Apartment Buildings Are An Investorís Dream
Apartment Investing Basics: 6 Warning Signs of a Bad Deal
How To Become Wealthier, Faster Investing In Real Estate
How To Create Massive Passive Income Without Hassling With A Single Tenant
How To Prevent Yourself From Getting
Investor Creates $11,472 A Month Passive Income with No Money Down!
Know the Players in Commercial Real Estate
Making A Success Out of Commercial Fixer-Uppers
Maximize the Value of Your Apartment Investment
My Favorite Words - Positive Cash Flow
One Tried and True Method To Get Motivated Sellers Calling You Today!
The 5 Money Making Advantages Of Multi-Unit Investing
The Benefits of Hiring a Real Estate Management Company
The Only Three Reasons To Be In Real Estate
The Real Estate Social Network
Why Building Your Buyers List Is Important For Wholesaling
Why Invest in Apartment Buildings?


Author's Products

Apartment House Riches Bootcamp