Is it better to invest in apartments or single family homes? Should you be buying
houses or should you be investing in duplexes, 3 units or even bigger apartment buildings?
All that and more coming up.
In this video, I'm going to walk you through the 4 reasons I invest in multi-family real estate
rather than single-family houses. Now, I may be a bit biased. My name is Mike Fritz. I'm a
multi-family real estate investor. I love investing in multi-family real estate and I love helping
others just like you do the same. I believe after this video, you're going to see exactly why you
should be investing in multi-family real estate just like me. The very first reason I believe
multi-family trump's single family is you get multiple streams of revenue from one footprint of
property. Meaning, every time you buy a multi-family building, you have more than one person paying
you. Meaning, if one of your tenants moves out, your bills still get paid. You own a single family home,
that tenant moves out, what's happening? Nobody's paying those bills. Oh, wait. Yes there is, it's you.
And I don't want that to happen. That's why I love multi-family. When one of my tenants moves out, they
don't call me asking me to pay the bills because the other tenant is still paying every month until
we can replace that tenant covering our expenses for that month. Now that month, we may not make any
money, but it doesn't cost us any money. And with a single family home, it's going to cost you every
time a tenant moves out until you can replace that tenant. Since no matter if you're buying
a single-family home or a multi-family home, you have to go through the same process. You have to
get a loan. you have to find property, you have to raise or find the money. Because you have to go
through that whole process, you might as well go through it for a property that can pay you every
month and if somebody moves out, you still don't have to cover those extra expenses. Essentially,
multi-family real estate is an insurance policy rather than just a piece of real estate because
you have multiple tenants and one moves out, that ensures you don't have to cover those bills.
With a single family home, you are the insurance policy. The 2nd reason I love multi-family homes
over single family homes is forced appreciation. Forced appreciation is where you get to dictate
how quickly the building raises in value. A single-family home made the rent may be able to go
up a little bit but essentially a single-family home is dependent on the area and the economy
to tell it when it's worth more. It goes up when the area goes up. But a piece of multi-family real
estate goes up when the income goes up. You see, banks and appraisers look at multi-family real
estate like a business. When the income goes up, the value goes up and if you can raise that
value, guess what? Your property's worth more. So, if you have a property inside of a year and you
can raise those rents your first year, you can see that forced appreciation on year 1 rather than
waiting for 2, 3, 4 years to see the value of that property increase. I like investing in real
estate that places me in control. And multi-family real estate does that in many different ways.
Not only is somebody else paying your bills and if one person moves out you're covered,
but it also allows me to raise those rents or decrease expenses and see the value of my property
go up. So. if I buy a property for $500,000 and I can get the rents raised that thing can go to 550,
600 inside of a year as long as I can raise those rents. We had a property we invested in
just about a month ago where the previous owner bought the property, emptied out the tenants, fixed
it up, filled it with brand new tenants and doubled its value. Doubled its value. You heard that right.
Meaning because he got tenants paying much more rent than they were when he bought it. That's all
he did. Did he make the units nicer? Yes, but because he did that, he was able to raise those rents
and doubled his value. It's essentially a giant fix and flip in which you get to hold the property and
still experience cash flow month after month after month. Maybe you know somebody who's thinking about
investing in apartments, share this video with them and make sure they also know why they should be
investing in multi-family real estate rather than single-family houses. The 3rd reason I
love multi-family rather than single family is it's recession resistant. What does that mean? That means
when the economy goes down, our cash flow doesn't go down. When you have a multi-family, in fact, when
the economy goes down and people lose their homes, it creates more renters that are driven to the
area. Often, our rent goes up because the demand goes up. So, in 2008 and 2009 when we saw a huge
economic crash in the real estate market, did the value of multi-family go down with all other real
estate? Of course. But what didn't go down was cash flow. And in fact, a lot of people that own
multi-family real estate, their cash flow went up because they could charge more for rents because
there was a greater demand for multi-family. There's one thing we can be sure. People are
gonna need a place to live. In the United States, we are quickly becoming a renter nation. More people
want to rent than want to buy than ever before. That is continually becoming lopsided where more
people want to become renters than want to be owners. And that being said, the more units we can
own to provide that value, we're going to see the benefit of that every single month on our
cash flow statement leveraging the fact that more and more and more people want to rent versus buy.
And then the 4th reason I like multifamily versus single family is you get bigger and more
cash flow. It takes more money to get into the deals but remember, we raised that from private investors.
But you're gonna get more cash flow every single month from a piece of multi-family than you are
from a single-family home. A duplex, let's say it gets a thousand dollars aside. That's 2 thousand
dollars. House down the road probably will get 15 hundred dollars. You have an extra 500
dollars a month and you still only had to get 1 loan, you only had to close on 1 property.
It's generating more cash per property. Now, of course, we always look at our return on investment.
It doesn't matter how much money it makes in a gross sense, it depends on how much I get to keep.
But multifamily creates more money for you to keep. And that's why I love having multiple tenants pay
me because my checks are bigger at the end of each month. If you're going to get into real estate or
you're already in real estate, start leveraging multi-family because you can force appreciate,
because of cash flow is huge, because it's recession resistant. These are reasons why
I believe every single person should invest in multi-family real estate. Multi-family real estate
far outstretches the benefits of single family, in my opinion, for the reasons I listed in this video.
And if you really want to see your wealth grow, your cash flow grow and your ability
to replace your income, live life on your terms, you're going to want to see more and more money
coming in every single month, and multi-family gives you the ability to see that happen.
But I've noticed before people jump into multi-family, a lot of fear starts coming into play.
Can I really get the money? That's a lot of tenants. What happens if this happens? It's a
big price tag, how do I really get into a property in that price range? I want you to stop thinking
about why you shouldn't do it, start asking yourself the question, "How can I make this happen?"
Robert Kiyosaki taught us in the book, "Rich Dad, Poor Dad," when you see something that you like
to buy but you don't have the money, you don't say, "Why can't I afford that?" You say, "How can I afford
that?" Change the question. And it's the same way with multi-family start, asking yourself how can
I get my next or my first piece of multi-family real estate without using even any of my own money.
I also have a free gift for you. I've put together what we call our multi-family master class. It's a
60-minute training where I walk you through how I got into multi-family and how you can start
leveraging the powerful strategies I teach to get your own multi-family real estate paying you every
single month. Click on the link in the description, join our training and I'll see you there.