3 myths about Flipping Apartment Complexes
The average real estate investor assumes that investing in apartment complexes is expensive and difficult. The process of wholesaling multi-family units is very similar to that of single family homes and much easier to get involved with than most people are aware of. The current economy has created a perfect storm for investors who are educated.
I'm disabusing you of 3 incorrect assumptions below about flipping apartment complexes...
1. You need good credit to get involved in apartment complexes FALSE! The truth is, banks care even less about your credit score when investing in apartment complexes. This is because banks understand that most private citizens can't afford such a big down payment on large multi-family complexes so they look to the actual complex itself as the sole collateral (also known as a non-recourse loan). Your credit score becomes irrelevant.
Myth 2. The real estate investor needs huge amounts of dough to flip apartment complexes. Again, NOT true. Apartments fall in the commercial asset class, traditionally have always been bought with other people's money. They fall in the realm of using limited partnerships and syndicates to pool resources of a host of players and investors, to get these deals done. Given today's economy, investors and big players are looking for these apartment complex deals. It just makes good financial sense.
3. Apartment deals are more difficult deals than single-family homes. FALSE! It's quite the opposite. Property management is commonplace. Finding buyers is a snap and the competition is practically ZERO. Don't let the bigger numbers scare you. It simply means more zeros on your assignment fee checks.
Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people's money makes it the perfect opportunity for today's investing conditions. They just aren't the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing. - 23199
I'm disabusing you of 3 incorrect assumptions below about flipping apartment complexes...
1. You need good credit to get involved in apartment complexes FALSE! The truth is, banks care even less about your credit score when investing in apartment complexes. This is because banks understand that most private citizens can't afford such a big down payment on large multi-family complexes so they look to the actual complex itself as the sole collateral (also known as a non-recourse loan). Your credit score becomes irrelevant.
Myth 2. The real estate investor needs huge amounts of dough to flip apartment complexes. Again, NOT true. Apartments fall in the commercial asset class, traditionally have always been bought with other people's money. They fall in the realm of using limited partnerships and syndicates to pool resources of a host of players and investors, to get these deals done. Given today's economy, investors and big players are looking for these apartment complex deals. It just makes good financial sense.
3. Apartment deals are more difficult deals than single-family homes. FALSE! It's quite the opposite. Property management is commonplace. Finding buyers is a snap and the competition is practically ZERO. Don't let the bigger numbers scare you. It simply means more zeros on your assignment fee checks.
Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people's money makes it the perfect opportunity for today's investing conditions. They just aren't the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing. - 23199
About the Author:
Michael Kimble is a successful real estate investor, specializing in marketing. Wholesale Real Estate, is his site, where he gives away 7 free marketing systems for other investors.
posted by X - Men @ 4:52 AM
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