Make Money with Affordable Apartment Buildings and Commercial Properties (Make Money in Real Estate)

Make Money with Affordable Apartment Buildings and Commercial Properties, 2nd Edition Investing in Real Estate, Fifth Edition, Trump University Real Estate , and Make Money Advantages of Commercial and Multifamily Properties 7.
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That means using private money or hard money as a bridge loan, getting the property to perform, in terms of lowering expenses separating the heat , or increasing rents, getting rid of dead beat tenants, fixing up the apartments, or all of the above, and then refinance into a conventional loan later out of the hard-money or private money loan. So you can do it over 18 months turn around a 10 unit building. The only way to get your income up is to buy two 10 unit buildings and so forth. If you paid off your owner occupied 4 unit in 10 years 15 year mortgage but extra principal payments , your owner occupied 4 unit becomes all cash.

You then find a 10 unit distressed property, and have a turn-around plan. Get a bridge loan using your paid off owner occupied 4 unit as collateral, or sell of your 4 unit. Get the 10 unit and owner occupy it and rehab it. Once you have it cash flowing and you have regular money against it, not expensive money, go get your next 10 or 12 unit building and so forth. In other words a save capital and get real estate education first b get an owner occupied residential,not commercial property with a short mortgage to build equity faster c get a distressed commerical 10 or 12 unit, using cash from your paid off residential property, d improve the cash flow in the distressed commercial property and stabilize it and finally e get your next 10 or 15 unit property and repeat the process.

Your desire to succeed will drive you to a successful start. You will learn so much more from this hands-on experience than any reading,advice,etc will ever teach you!! Give it a shot. I was also nervous at first. Now 4 years later, it seems easy. I own and manage 8 units. For all of the questions from the folks regarding obtaining financing, I can certainly help with that. Second, be sure that you have adequate reserves. In a lot of instances, this means 6 months worth of piti payments on the properties that are currently financed. Feeling pressured to buy properties quickly because the market is heating up only leaves you vulnerable to mistakes.

In my experience, the banks that will work with you are not going to be the national institutions, but are going to be local banks. Fifth, forget the notion that you will be able to positively cash flow on every property that you purchase. As the market recovers like it is currently doing , you will be forced to accept ever smaller profits on each property.

Most local banks that will work with you are not going to offer you 30 year notes for financing and that will definitely have an impact on your cash flow. Do you need 22 properties to retire? My goal is somewhere around because I intend to get the properties paid off as quickly as possible. My retirement comes when the properties are paid for, not when my monthly passive cash flow has exceeded my monthly expenses. If you are getting negative cash flow then you should have no business buying any properties whatsoever.

If the positive cash flow is not where I want it I simply do not buy! I will switch to doing secondary tax lien foreclose and flips or private lending until things improve as far as rental properties go. Credit is fine and I have 6 months reserves for every financed property. Thing is now I am only doing cash buys from here on out using rental income and other income I receive. I only have 4 properties financed even though fannie mae will allow 10! This way I am not over leveraged AND i will get more cash flow with free and clear properties.

You putting so little down and carrying negative cash flow could very well put you in a bind before it is all said and done. You are not forced to accept small returns nor are you forced to accept negative cashflow Sam. Derek I applaud you for your candor. Listen people there are two basic ways to make money in real estate. Capital Appreciation higher risk and Cash Flow lower risk. If you are investing for primarily for CA then you might be willing to accept negative cash flow since you Think your property will signifacantly go up in value by the time you sell.

Ok I get that! But my friends, if your primary goal is cash flow then you should absolutely not invest in properties UNLESS you are expecting a positive cash flow year one!!! I happen to love Duplex investing as I think it is easy to understand and the cash flow is great. As far as multiple tenant properties, duplexes are probably the easiest to enter into with the least amount of issues.

There are two many good cash flow investments out there to not make positive cash flow a requirement. To invest in real estate you need to be financially sound, if you are not then you will risk losing not only your money but your time. Additionally, if you have a bad experience you probably will not give it a second chance. If you are not financially sound then you probably lack financial discipline and that my friends is a recipe for disaster.

Investing in real estate gives you the ability to leverage your money but done incorrectly can ruin your day. So get some discipline in your life, get a emergency cash reserve and then if you are at that point meeting these minimum requirements, consider buying a duplex to live in and rent out the other side. If you able to do that successfully then your ready to expand. For those of you who might own a home and have demonstrated good discipline, but are new to real estate as an investment, I would recommend starting by buying a duplex. I have no problems getting 30 year mortgages on all my financed properties.

Like Bryan said I think Sam is in the wrong market. Sure he could get a 30 Year fixed and net more monthly cash flow, but his concept of retirement is debt free. Understood that you are not acquiring properties as quickly, but if the market should tank or times become lean, he is insulated because he owns his income properties outright. High profit deals in the price range this article is suggesting are everywhere outside the most desirable MSAs anyways.

I think too many people see retirement as a goal. I have older clients who have millions in the bank and cashflow heavy each month. These guys are still buying properties and setting them up as assets. They are darn good at what they do. They are an inspiration to keep moving forward.

I follow their lead. Concerning your older clients that have Millions in the bank, they are insulated as well since those millions self insure them from unseen circumstances. I agree that you should follow their lead in that you should limit exposer to debt, continue reinvesting, and be prepared for these unforeseen expenses while investing.

Real estate is a business and should be treated as one. Whether you own one house or a unit apartment complex, it is a business. I keep a separate account for my single-family properties, and of course, a separate account for each of my apartments. I know I need to get into the real estate game, and I love seeing examples like this.

I love this advice! The biggest trap for those wanting to plan their retirement is a k. A k certainly has some attractive characteristics, especially if the offering company provides a contribution match. However, a k simply should not be used as a primary retirement savings vehicle. Instead, folks should focus on creating their own cash flowing asset portfolio, like investing in rental properties like you suggest.

Great post…in fact, I just linked to it in a article I posted today. This is a terrific article. I set up my retirement on the exact same principals outlined and actually the same price points. I have done both, save and buy rental property. I own over 20 rental properties. My real estate holdings out perform my stock market portfolio.

I buy foreclosed properties that need total renovation, do most of the work myself and except where licensed electricians are needed. I just bought my fifth property. I use property management and buy landlord insurance policy for each of them. Any comment on my strategy? My real goal is not to work in corporation any more, but have stable income. Tim, congrats on your success so far with your 5 houses.

Make Money with Affordable Apartment Buildings and Commercial Properties, 2nd Edition

Sorry if this comes across as harsh but your strategy is ineffective on many points. You should run your own properties, you should always buy for positive cash flow and if you ever want to quit your job you have to have cash flow.

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Most of your cash flow is tax free if you know what you are doing. My son runs 11 rent houses and it takes him less than 3 hours a month. I currently have my primary morg. I also am about 3 payments away from paying off a condo that I rent out. The condo is worth about k. I am looking to buy another condo in the same complex — distressed property for k and will bring in It was suggested that I can take k out against condo and buy 2 more properties with that money. Lee, Please keep an open mind as I say this. That is dead equity with a low rate of return.

You have a lot more options than you even mentioned. Please call me to discuss your other options including apartments at Sincerely, Steve. I had planned on doing cash buys once my financed properties had the cash flow to start knocking them out which in turn produces more cash flow because they are paid off!

I understand the dead equity and low cash on cash return. Some properties are not worth financing especially if they are really cheap yet still good investments. I disagree with you on property management.

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All markets across this country are different. The cash flow where i live has not been great for years. Managing your property is a waste of time here with no cash flow to begin with compared to other cities across the USA. You have to go where the money is. Less headaches as well. I am attempting to duplicate this same model. I have 3 properties and 7 units two duplex and one triplex all financed.

I enjoy doing this and enjoy the property management end as well. I understand the risk, but do not want to stop purchasing more properties. Can someone help explain why I am being told that this may be unwise? I do put money else-where in investment accounts. In other words, I am not putting all eggs in this one basket, but my favorite part of this is passive income. I have not paid a rent or mortgage in 4 years because of this positive cash flow and owner occupying these properties. You are actually doing the right thing with your real estate investing. You are doing the wrong thing by asking those people what to do next.

You need someone on your team that owns a lot of real estate like our mentors. Do any of the people you are getting advice from live off of their real estate investments? They are not qualified to advise you. Also, you may be ready for apartments as your next step. Have you seen our free introductory workshop on that? The issue is an issue that too few folks are speaking intelligently about. There is no doubt that cash flow is king. Way to go John! Success in passive investing takes an active approach! Keep it up and let us know if we can ever be of service. For everyone who is broke, I would recommend starting with an owner occupied rental.

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This will get you in the game with the option of converting to a conventional loan later. You can only have one FHA loan at a time and this would allow you to purchase another property within a year or two using FHA again. This strategy does require living in the property and a willingness to move every year or two.


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Another way to get capital as a first time home buyer is to pull from retirement savings. With a Roth IRA account, first time home buyers can pull out up to 10k one time for a down payment without any penalty. I own 13 units at the moment. I hired a management company. My goal is to get 17 more units in the next 2 years or less. Take some management courses and manage myself. Thanks for reaching out! If you are, lets keep you moving in the right direction. A little advice for the hive — I am having a difficult time getting financing for properties.

My goal is to get 5 more a year for the next 3 years or so, but I am being limited by banks. I know that I can get up to 10, but what then. How do I get more properties without paying off the ones I have? I know that there are portfolio loans, but the interest rates they offer are so high that it halves my cashflow. Any advice is appreciated. Thanks tremendously for reaching out with the question. There are many ways to exceed the 10 property cutoff. Also, we have courses which can teach you how your spouse could help you get around the 10 property cap.

I have been a investor for 23 years, started buying duplexes with no money down and walking away from closing with money in my pocket, worked a factory job and 2 years ago left that job to manage all my properties.

How to Make Money in Commercial Real Estate | Pocket Sense

Today I have 33 units which consist of duplexes, houses ,4 plexes, and a 16 unit apartment complex. All bought with no money down. I feel like I am semi retired and loving it. Still learning and looking for more properties currently have 1. It never ceases to amaze us how effectively the rental real estate model can change lives.

It seems like you may also be transitioning into multifamily as well with the 16 unit. Keep it up buddy! I applaud your strategy and congratulate you on your success but I must ask. Did you create an S Corp? How did you structure the entities. How did you pay no money down. This article was definitely a great read.

I too am looking for a starting point and create enough passive income in the next years to be able to stop working a and allow me to focus more on realestate. Where do you start?? Looking to start small, single family home graduating to duplex then to apartment units. Are tax auctions a feasible way to go? Thanks so much for reaching out! Thanks for getting in touch as well. We just emailed you to get a conversation going. Have a great day! New investors may want to stick to publicly traded REITs, which you can purchase through an online broker.

REITs can be varied and complex. New investors should generally stick to publicly traded REITs, which you can purchase through an online broker. Check out our guide to opening a brokerage account and the NerdWallet analysis of the best brokers for beginners. These platforms connect real estate developers to investors who want to finance projects, either through debt or equity.

Investors hope to receive monthly or quarterly distributions in exchange for taking on a significant amount of risk and paying a fee to the platform. House hacking allows you to live in your investment property while renting out rooms or units. Of course, you can also buy and rent out an entire investment property. Refresh and try again. Open Preview See a Problem? Thanks for telling us about the problem.

Return to Book Page. Make Money with Affordable Apartment Buildings and Commercial Properties, Second Edition , shows you how to build wealth with affordable multi-unit residential and commercial buildings. Low-priced income properties can yield higher returns than single-family homes? This book shows you how to find, assess, buy, and manage apartment buil Make Money with Affordable Apartment Buildings and Commercial Properties, Second Edition , shows you how to build wealth with affordable multi-unit residential and commercial buildings.

This book shows you how to find, assess, buy, and manage apartment buildings, retail offices, self-storage, and other overlooked investment alternatives. In today's tough housing market, these properties offer great returns. Paperback , pages.

Building Apartments 7 Steps to Apartment Building & Investing

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