How to invest in small apartment buildings? Are you ready to invest in an
apartment building? Now is a great time to get started. And I'm going to tell you
exactly how to do it and exactly why you should be doing it. Let's go.
I'm going to give you a step-by-step guide on how to buy small apartments the smart
way. I'm going to tell you the 2 major options that you have and how to choose
which option is best for you. And I'm going to share with you how you can get
your own network of investors to help you buy small apartment buildings.
Apartment buildings are all the rage right now. And there are so many people
talking about why you should buy a small apartment buildings. Why you should get
into multi-unit property investing. But the problem is there are so many people
talking about it and not enough people doing it. So, I'm glad that you are here
and you are on the right track. I am telling you, I waited way too long in the
process to start buying and getting into small apartments because there's so many
benefits that I just completely missed out on. And I started investing in real
estate kind of while I was still working. Started doing wholesaling then I started
doing some fixing and flipping. And then I eventually got enough rental
properties where I could quit that boring job. But the problem is I had all
of these single-family residences and it became quite a big deal trying to manage
all of those properties, okay? I had mortgages on every single one and
then you would have taxes and insurance and the grass has to be cut and the lawn
and the roof and the thing for all of these different places. But once I kind
of got smart and now in the past few years, me and my students, we are into
small apartment buildings and there are so many benefits. I literally am able to
save money, the risk is much lower, the financing is a little bit easier. And
there's more money in buildings, okay? When you sell them you actually make
bigger profits and I could just go on and on and on about why this is what you
want to do. But I think that you already know that that's why you're here
watching this video. So, let's get to the next part. When we're talking about how to
invest in small apartment buildings, the first thing that you have to do you've
already kind of started is educate yourself. I cannot say this enough. One of
the reasons why I didn't invest in small apartment buildings is because I didn't
know enough about it. And the truth of the matter is that actually is a very
smart thing to do. If you do not know about it and you're not
gonna learn about it, then you probably should not be investing in it. An
education can be very fun and make you a lot of money. It doesn't have to be all
boring when you're learning about this stuff. And so, go ahead and take a class
if you have to. Go to an organized real estate investor association meeting. Go
find groups on meetup. You want to start educating yourself in connecting
yourself to other people that are actually investing in small apartment
buildings. The next thing when we're talking about investing in small
apartment buildings is choosing an area. You want to choose an area that is right
for investing. And that is going to be an area that has good economic indicators.
So, what are some good economic indicators? You want to first look at
what the employment rates are there. You want to look at what the population
growth is. Are people moving there? Are people not moving there? Do people have
jobs there? What are the incomes there? Are people mostly unemployed? Is it a
growing economy? Most of your major cities in the United States are probably
going to fit in this category. However, if you find that you are not in one of
these areas are you're very far away from a major city, then you want to
really make sure that you are looking up these stats. Now, of course, New York and
California, they have a lot of different caveats because they can be a lot more
expensive. However, even when it comes to New York and California, you can do small
apartment buildings. Let me get to the next part tell you how because you have
2 important options. You do not have to actually keep the property, have tenants
in the property or manage the property to be an investor in a small apartment
building, okay? So, one of the things that you can do literally that I've told you
now that you know the area you kind of have learned your market and you've
educated yourself, you don't actually need all of the money, all of the credit
or everything that you need to buy that small apartment building. You literally
can start marketing and finding people that want to sell those properties and
you have 2 options. You can wholesale that property to another investor that
actually does have the funding and the resources to keep the property. And you
can make a lot of money in the process. Let me give you a quick example. So, one
of my students actually had turned on a lot of their marketing for people that
were past due their mortgage payments. And they were
also starting to find some multi-unit properties.
Well, they had come across a private seller that had a small apartment
building. And they were very sick, okay? They weren't passed due on the mortgage
yet. But he had become very sick and his wife did not have the money to maintain
the property and keep it up. And so, they were wanting to sell the property. So, my
student was able to get that apartment building under contract for one price
and then slip that contract to another investor that did have the money and the
resources and the the experience to manage the property. And again, this is
super easy to do. And they were able to pick up a 40,000-dollar fee, okay?
So, the great thing and it's amazing, yes. You heard that right. 40,000
-dollar fee just for finding this person, getting the property under contract and
then flipping that contract to somewhere else. All they did was just increase the
price by $40,000. And it was still a really good deal for that
end investor. So, wholesaling, if you don't know about wholesaling, you can wholesale
apartment buildings I actually put a link. I've made a ton of videos about
wholesaling that's a great way for new investors to get started investing in
real estate. So again, you can just start marketing and finding people that have
these apartment buildings that want to sell them and you can invest in real
estate just by getting those properties under contract and then selling those
contracts or signing those contracts for a higher fee. That's one way. The second
option that you have... Again, if you don't want a wholesaler you feel like "No, I am
ready to get my apartment building and I want to keep it", is you can just find
financing for it. So again, in that situation where my student found that
guy that wanted to sell the 8th unit property and you know they didn't
necessarily have the resources yet to do it, they could wholesale that contract.
But what you could do instead is find financing for it. There are tons of
lenders out there that will lend on small apartment buildings based on the
revenue and the cash flow of that apartment building. And so, this is not
difficult for you to find these lenders that are willing to lend you money. And
then you can start making money on that property.
Again, this is difficult to see, this isn't hard to do.
These are the options that you have and then you can just start managing that
property yourself. Or you can hire a property manager that will take their
money from the rent. Again, you don't have to come up with any upfront money. They
will take their money from the rent and they will manage that property for you
very professionally. And then last but not least when you are looking to invest
in small apartment buildings, you need to connect yourself to investors, okay? Most
investors have their niche. Some investors love apartment building. Some
still love residential apartments, some love strip malls. Some
love storage unit facilities and assisted living homes. All different
types of real estate is out there. And there are so many real estate investors
that have their own niche. And what you want to do is start getting connected
with those people, okay? The easiest and fastest way to do that is to find your
local real estate investor association, okay? You can look for these places just
by doing a google search. And you can also find many of them online on MeetUp,
okay? MeetUp. That's one word and it's a free place to find groups that you may
be interested in. And so, this is the awesome way to start getting connected. I
have found so many deals at real estate investor association meetings. People
bring deals all the time there. People bring their cards.
There's contractors, electricians, insurance companies, title companies. You
name it, you could probably find it at your local real estate investor
association. If you don't have one, you don't know how to find one, please don't
hesitate to email us at questions@NoelleRandall.com. And we will help you
get connected to your local area. I also have a company that is investing very
heavily in real estate and we actually have what's called a crowd fund. where
for as little as $500, people are investing into that fund. And we are
literally buying properties. We are getting apartment buildings and things
like that that you may be interested in. Please check us out at trucrowd... That's
T-R-U, C-R-O-W-D, ".com". Trucrowd.com. The name of our company is
NUUREZ. N-U-U-R-E-Z, Inc, Incorporated. And you can check us out
see what we're doing. You can actually invest in the fund or you can emulate
what we are doing. But this is a great way to start investing in real estate
and start making profits and live the life that you deserve.
This is Noelle. To your success.