Monday, July 13, 2009
Condo loan frustrations? short sale/foreclosure blues? Invest in yourself(wealth management)..2-4 flats..
Condo loan frustrations? short sale/foreclosure blues? Invest in yourself(wealth management)..2-4 flats..Chicagos loaded w.them. Motivated sellers..I can help you find
Do you wish to become wealthier within a short span of time? If the answer is yes then this article is the right way towards it.
Generally, very few first time investors have excess money before getting started. So to gain a foothold in this field, they initially buy single-family homes and then hope to progress ahead from there.
Does not this seem interesting? Maybe yes, but this is not right from the investment point of view; one should invest in smaller multi family homes or even apartment buildings as this offers a better way to start, provided you know the niche.
It is quite magical handling money of other people for your benefit.
1. Enhanced cash flow and multiple income generating source- If you sit and analyze the rent flow with regards to the fixed expenses on the invested properties, then you would think investing in multi units is a highly profitable and a wise decision, as the tenants pay for all their expenses such as the electricity as well as the maintenance of the building. The most beneficial thing in multi unit investment is that your property value keeps increasing year after year.
2. Generate cash flow shortly after the investment- If you buy a multi unit for example a building that does not require much renovation then you can have your tenants soon. That is not possible with single house investment, as well as you dont earn anything from single houses until you sell them.
3. Earn more for your expenses- If you own a single house with five tenants in one location then you only have to maintain one place, whereas if you own and rent out five different single houses then you have to maintain five different properties.
4. Multi-units are easier to sell as compared to single houses-Investors see them as highly positive sources of cash flow and not as mere investments that need to be maintained and sold. Hence, people lineup to invest in the profitable multi unit deals, even if the real estate market is low because they find it highly profitable. You can use the time period between purchase and sale to locate other investments as well as reap the benefits of your property. Isn't this a high positive leverage of your money and time?
5. Less competition- There is very less competition as compared to the single-family houses? The reason being that there is no one teaching you out there how to invest, where as the estate gurus who are flipping the single houses make the same procedure sound as easy as chewing gum in the dark. Smart investors think of both investments.
6. Easy management- As you gain high cash flow, it is easier to hire management companies to manage the tenants in your absence and thus it eliminates the hassle in your absence and you can enjoy hassle free profit.
You must have heard or seen investors earning profit by flipping single-family houses, but if you analyze their history then you can calculate the profit and identify the investors who have invested in multi units as the ones who have earned massive profits as compared to the single house owners.