How to invest in apartment buildings?
Are you ready to take your real estate investing to the next level?
Or maybe you've heard that apartment buildings are the next best thing in real estate?
Well, you're actually pretty smart because they are.
Well, I'm here to set the record straight, tell you the truth about apartment buildings
so you can make big profits too.
Let's go.
I'm going to give you a real breakdown on how to find to find the best properties and
decide which apartment buldings best fit your desired goal.
I'm going to share with you some insider tips that I gotten in over 15 year of real estate
investing and some pitfalls that you need to avoid.
And last but not least, I'm going to share with you my number 1 secret to more than more
what the average investor does with apartments.
So, let's talk about all the benefits that there are to real estate investing.
Real estate investing has really changed my life.
It took me from living in my parents basement to becoming a multi-million dollar real estate
investor.
One of the thing that you can do with real estate that you cannot do with anything else
is really create wealth.
As you may know, real estate investing has created more millionaires than any other industry
combined.
In fact, if you look it up, it's says that 89% of millionaires were created so through
real estate.
Real estate is going to offer you cashflow if you use the properties for rental properties.
It'll offer you appreciation and equity as the properties go up in value.
You can sell them or refinance them or get that cash out.
Additionally, real estate is real property.
Meaning, you can keep them and deed them to your children or your children's children
for generational wealth.
It can be an asset, not a liability if you invest properly.
So, when I first started investing in real estate, I started with single-family homes.
That was because that was all I knew.
But the issue with single-family homes is it becomes really hard to scale.
For every property that you get, you're going to get a separate mortgage bill, a separate
tax bill, a separate insurance bill, separate landscaping, and on and on and on.
But the benefits of investing in multi-units and apartments is you only have one mortgage,
one tax bill, one insurance, etc, etc.
And this can be such a great benefit.
Also, if you have a single-family home and you have that as a rental property and the
tenant moves out, that means that you have no income from that property.
But if you have a 5 unit or a 10 unit and one of the tenants moves out, you still have
9 other units making you money.
And so, this can be a great benefit for you and also for your cashflow.
This will make it easier for you to manage and it will make it more inexpensive.
You'll be able to spend less money per unit if you do things properly.
So, it's a great benefit and it can really save you money.
And it can save you the headache of trying to manage 42 properties like I was trying
to do.
So, when it comes to apartments, you are definitely on the right track.
You literally can start looking for different apartments to invest in right now.
There's a website called loopnet.com, that's L-O-O-P, (net) N-E-T, ".com".
This website will have all of the commercial real estate.
It'll also have medical offices and strip malls and storage units and all these other
types of commercial real estate.
But it's very easy to filter by the city and state that you want and to filter out all
of those other types of commercial real estate.
You literally can just click the button and pick commercial residential.
These will be small apartment buildings or apartment buildings that have numerous units.
Apartments range from 5 units all the way up to hundreds.
If you're investing in one to 4 units, that is not commercial units.
And those are not considered apartments.
Those are considered single-family homes.
But once you get over 5 units, you are now into apartments and you are now investing
in commercial real estate.
And that's where it gets interesting.
So, when it comes to apartment buildings, people are going to talk to you about what's
capitalization rate or the cap rate.
And this is how we determine how much money the investor can expect to make on their money.
So, if for example you are purchasing an apartment building and it cost one million dollar and
it makes $80,000 per year, you are going to divide that net-operating income...
Again, do not include the mortgage.
That's the net operating income.
That's the amount of money that the property is making.
You know, the gross amount minus that all the expenses.
Again, not including the mortgage.
And then you will divide that by what they are selling the property for or the properties
current market value.
This is what investors called the cap rate.
And this is how we determine if we want to buy an apartment building and if it is profitable
to us. in most cases, when you are purchasing an apartment building, you want to find one
of the highest cap rate available.
I usually go for properties that have at least the 10% cap rate.
But you will see sometimes it's only 7 or 8 percent.
Those are still pretty good.
But you really don't want to go much below that.
Because again, you are dividing the net operating income by the purchase price.
The cap rate will also help an investor to decide what they can expect to make on that
profit.
So, it is your rate of return.
It's a number that basically calculates how much you can expect to make on that rental
property.
So, another important thing that you want to look at when it comes to investing in apartments
is you want to find out how well the apartment is doing before you buy it.
When you but apartments, they have to give you the trailing documents.
We call it the T-12.
You want to see all of what happened on the property prior to you buying it.
What were the expenses?
See all the invoices, see all the repair bills, things like that.
Additionally, check the rent rolls.
You want to see how well the tenants that are there, how well there are paying?
Are most of them paying on time or most of them not?
How well occupied is that apartment building?
The last thing that you want to do when it comes to investing in apartment buildings
is start to invest in apartment buildings with apartment is losing money and they are
just trying to unload that piece of crap onto a new investor.
I see so many of my students that have these apartment buildings and all of these investors
tell them what a wonderful deal is.
But when we actually look at the t12, the trailing docs, and the rent rolls, we can
find out easily that the property is not making very much money and it's going to need a lot
of work in order to get it to be profitable.
Do your due diligence and you won't get stuck with the problem.
So, as you know, Noelle is investing in apartments and I actually have an opportunity where you
can invest in apartments for as little as $500.
We are literally acquiring apartment buildings and sharing the profits with all of our investors.
Check out my company and my Trucrowd funding at trucrowd.com.
You can go to trucrowd which is T-R-U-C-R-O-W-D, ".com" and look up my company Nuurez.
N-U-U-R-E-Z, ".com."
(Nuurez.com) and find out all about what we're doing.
And again, for as little as $500, you can become an investor in hundreds that we are
buying.
Instead of you going out there and searching for properties yourself, you can do that and
you can invest in NUUREZ and start getting quarterly distribution.
I want to make sure you have all of the resources, all of the tools, and all of the knowledge
that you need to be successful.
This is Noelle.
To Your suscess.