Creating Real Estate Wealth With Clever Purchasing Techniques
Investing in real estate is fraught enough with stress potential problems and deals going sour to make any and all involved in it shy away from anything that looks like it may be a constant source of problems.
The image most inexperienced real estate investors have in heir heads of multifamily dwellings begins with a midnight phone call on Friday night from angry tenants complaining about blocked plumbing. I will at this point have to be entirely honest and say that this is an image which I too have had early on in my career and it was this which made me not shy away from investing in multifamily dwellings but view the issue as a problem to be solved.
To my mind when it comes to owning a block of apartments as opposed to a single house or even a single flat the effort and time involved in setting up the deal are almost exactly the same but the returns from a multifamily dwelling are always better and the usual risks associated in having rental properties such as tenants disappearing the property getting damaged a property staying empty for a month or two as you advertise for new tenants are lessened in the impact they can have on your profits.
The reason the risks are lessened is because with a multifamily dwelling you achieve what I would like to call an economy of scale which can allow substantial savings to be made. Let me explain: You want to get some repair work done? No problem. With a multifamily dwelling the chances are you will wait until you have two or three flats that need attention rather than just one. Because the service fee for repairs is split between more than one family it means that the burden upon each is small and the money is always there.
It also means that because you are arranging to do work on more than one flat you can negotiate better rates in both the work done and the materials you need to buy in order to complete it. It is this economy of scale that also makes possible to arrange to remote manage your properties through the services of a professional management company.
That way you can own as many apartments as you like without ever having to see a single tenant or field a single phone call. I personally own more than 4000 apartments and I run them all exactly this way. This is what I call being clever with your real estate purchasing. It allows you to build up what you need in terms of a portfolio and by running it like this you are free to make the strategic decisions which will help me find my next deal and acquire my next property.
I have a million dollars sitting in the bank right now as you read this and I earned it by operating exactly this way. The thing is I am not exceptional. What I did can be learned be anyone provided they are willing to take on new ideas examine closely the way they operate in the real estate field and be prepared to work hard at making their dream of financial independence real.
About the writer: David Lindahl also known as the “Apartment King” has been successfully investing in singlefamily homes and apartments for the last 14 years and currently owns over 7000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins Robert Kiyosaki and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights please go to http://www.davesoffer.com/ezine
Related posts: