Are You Looking to Buy Apartments? Here Are Some Amazing Facts Straight From Real World Listings!

Have you ever thought of investing your money into some sort of asset but are unaware which direction you want to go? In my opinion Apartment buildings are the way to go!

Here are some numbers I got from a Apartment complex in Orlando, Florida.

There is an apartment building going for 6,300,000$

It has 140 units/45,000$ a piece.

The average price of living in Orlando is 700.00$ for apartments/little houses. So lets give each apartment unit a value of 650.00$ 2 be conservative.

650.00$ month * 140 units = 91000.00$ month.

year 1 910,000.00

year 2 1,820,000.00

Year 3 2,730,000.00

Year 4 3,640,000.00

Year 5 4,550,000.00

Year 6 5,460,000.00

Year 7 6,370,000.00

7 years 7 months to pay off that first loan with 10% interest. Assuming the apartments stay 100% at capacity and rent is going for 650.00$ for each unit.

Now I’m not sure how loans work with money like that. But if it was a 30 year fixed loan at 10% interest you would be paying around 17,500.00$ a month.

So 73,500.00$ would be your monthly profit.

After paying management/janitors/fixes etc…

I’d imagine you still would be making a ton of money.

You can’t get margins like that renting out a house.

Remember, your also building up value each month. Every time you pay off that loan assuming the value of your property stays the same its money you can get back if you decide to sell it.

On top of the monthly rent profits you made.

What is required to run an apartment building each month?

Management, Janitors possible security guard? Now how much would a good manage cost monthly?

Let’s say
4,000.00 month= management
+
Management 1,800.00$ assistant
+
1,600.00$ = janitor x2+1 security guard (4,200.00$)
1 manager Janitor (2,200.00$)
+
5,000.00$ in apartment maintenance supplies in which could be more or less.
Hell lets say 10,000.00$ for insurance /month.
+
2,000.00$ for advertising.
+
17,500$ loan
=

91,000.00$ – 46,700.00$ =

44,300$ Profit= month with 100% capacity.

Lets assume your only at 80% capacity.

80% of 91,000.00$ = 72,800.00$

Your still making 26,300.00$ profit a month after all expense’s if my numbers are correct which I just sort of estimated. But they are close.

This is with the whole complex being ran by other people with little supervision.

I’d recommend researching RE for sale. Check out the area. If any schools/hospitals etc… is being built in the immediate area it would be wise to grab that building because it would be a more desired area.

A senior citizen complex would be nice too being that they all have fixed income and you wouldn’t have many problems being they are all old and are just looking for some overhead.

Look into how you would obtain such a loan. That would be the your main obstacle.

If investors were handing out large amounts of money just like that I would be a millionaire already as would TONS of other people. Work on building your credit.

I also used exaggerated numbers in my first post to offset differences like you mention. Would you really have 10% interest on a 30 year loan for 6.3mil? Doubt it. You would be getting more then 650$ per apartment. The average was 700$ for your everyday apartments/small houses in Orlando which is where the numbers are coming from.

The numbers I got from that example are from a complex which is about 750$-800$ ea in which I know I did not mention. (sorry)

Zadar is a Great Place For Vacation As Well As Buying Apartments

Is your wish to travel to a place that is most exploratory and unique. A great destination spot for you to explore would be Zadar. Zadar is a place that is well connected to many big cities such as Split, Republic, Zagreb, and others while being in Croatia. While you are there you can enjoy some fresh air and the beautiful sea water.

For all those thinking of visiting Zadar must try to first look for an accommodation. One has a whole lot of options to choose from. There can’t be any better option that to Zadar it will be ideal to take up an apartment. After a place in Zadar has been selected it will be easy to look for an apartment. It is the opulence that will make you stay in Zadar apartments even more jolly and you are bound to be reminded of your home. You certainly cannot miss out on staying in Zadar in apartments Villa Bella. There are many features that are included in this apartment, and it is a quiet location as well.

There are a lot of kitchen things as well available here such as dishwasher, fridge etc and also other useful things as a tennis table, washing machine, TV Grill also. You can even enjoy hobbies like playing on a play station game system as well. For the convenience of larger families the apartments is built in such a way that it has five bedrooms and two bathrooms. There can’t be a place more cozier than this with the sea side view as well.

When you are looking for a place that is well adored and special then it is best to take a place in apartments Benak. There is a single owner for this apartment named Vladimir Benak to make your stay trouble free and secred. It is your need for 2-4 bedrooms that you can pick up from that is available on the different floors.The amenities and facilities that you will get by staying here are air conditioning, sea view, parking, TV, Pets allowed, washing machine, grill, terrace, fridge, Satellite TV, and Kitchen. It is the use of bright colors like red, sea blue, sea green, and yellow that make the walls look quite ornamented. The windows are nice and tall and they give you a beautiful view of the sea while you are eating breakfast lunch, and even at dinner you can view a beautiful sun set.

The Benak owners have even been handling tourism activities for over the last forty years. There has been remodeling done to the owners apartments to make it look new. One can even have fun with their family on the lovely sand beaches that are close by apart from good restaurants and places that are worth visiting. On the whole it will be a worth remembering experience while go on a vacation to Zadar.

Four Hot Spots to Buy Apartments in Bangalore

For the past few years, Bangalore has witnessed a boom in real estate market and has emerged as a buzzing real estate destination. The development of IT and production sector mark a vital place in making the city amongst the top three favored spots for settling base in India. The real estate market in Bangalore has evolved into a more matured market than that of Chennai because unlike Chennai, a number of locations in Bangalore are supported with social infrastructure. That’s why even suburb apartments for sale in Bangalore also see a substantial growth. Let’s see 4 hot spots that will make good returns on your investment.

Begur Road:

Apartments for sale in Begur road are gaining momentum because Begur road area is emerging as IT hub owing to its strategic location. Its huge connectivity to the airport, railway station and 100 meter wide road make it a lucrative destination. In addition, it is enriched with reputed educational institutions, shopping centers, medical facilities, aesthetically developed theme parks and entertainment complexes. Thus, investing in Begur road will bring a good value appreciation in future.

Bommanahalli Bangalore

Investing in Bommanahalli is a good move as developers are jolting forward to get into their projects. Investors can realize good return on their investment. It is closest to Hosur road and electronic city, IT hub of Bangalore. It is quite away from the hurly-burly of the city and regarded as a good residential place. Consequently apartments for sale in Bommanahalli Bangalore see rise in the prices.

Electronic City:

Electronic city, the commercial hub of Bangalore, is one of the largest industrial parks in India spread over 332 acres. It emerges as a residential hub as employees working in electronic city prefer to stay near to their offices. Apart from that, good connectivity to Whitefield, Bannerghatta Road, Hosur Road, and Sarjapur Road also fuels the demand of apartments for sale in electronic city.

Hosur:

Hosur has emerged as giant satellite town of Bangalore and attracts property buyers incredibly. Owing to its improving infrastructure, fast connectivity Hosur has become a focal point for property investors. This trend raises demands in mid- and luxury apartments for sale in Hosur road, Bangalore.

Bangalore property is expected to see a steady growth over the coming years too. The amalgamation of thousands of young aspirants with the city’s corporate work culture has lead to an increase in demand of residential sector. They focus on suburban areas of Bangalore such as Begur road, Hosur, electronic city and this has lead to a boost in the property values of these suburbs. These suburbs have still a huge scope for new developments and with the Metro expanding its network things can only look up further.

These aforesaid hot spots are the most affordable real estate scenario in Bangalore. However, prices are not going to stay this way forever. There is a serious shortage of good rental properties. This is the right time to invest before prices start soaring. Get in the Game.

How to Buy Apartment Buildings and Create Wealth

Quitting a job is one thing but having other income options is another thing altogether. Once you learn how to buy apartment buildings with no money of your own you will regain your financial independence and freedom. When buying apartment buildings there are many things to look for.

1. Location – The largest factor of real estate is location. If you buy the building in a rough neighborhood it will be difficult to collect the rent, raise the rent, and sell the building at a profit. While buying a building in a nice area will be hard to turn a profit since it is almost impossible to get good deals. The best market to be in is the middle of the road, area that are becoming desirable but are not there yet. Here it is possible to get good deals, collect good rents, raise rents and sell at huge profits.

2. Price – Buying a apartment building at the right price can be easy or difficult since you will have to do your homework. The more sources of potential properties and contacts you have in the business will determine your level of great deals. Buying at the right price is more important than selling at the right price since you can never pay to little for a property.

3. Expenses – Every dollar you can potentially reduce the buildings expenses is a dollar that goes directly into your pocket. In every apartment building there are areas that can be reduced. The best investment you can ever make to reduce your expenses is by having each apartment separately set up to pay their own utilities.

In conclusion, there are many things to look at before buying any apartment building. The more you understand the less you will make mistakes and become wealthy.

How to Buy Apartment Buildings With No Money Down and Retire

When people think of buying apartment buildings they think of all the potential risks however what they many not realize is that they are easier to buy, manage, and sell for big profits.

The mistake that most real estate investors make is buying single family homes. I have made the same mistake in the past and few seem to realize that having many apartments in one building is much easier to manage, less expensive to operate and easier to make money then with single homes. The financing was actually easier since instead of having to get loans for each house as you go, you only need one large loan. A bank would rather have a large professionally managed building than a portfolio of single family homes which makes financing them easier.

Many people get turned off since the loans are commercial loans versus residential loans however getting a loan for 1 million dollars is less time consuming and easier than getting 10 loans of $100,000 as you would do for single family homes.

Apartment building investing has many things going for it including:

1. Interest rates are low
2. Large income tax deductions
3. Great investment when inflation returns.
4. Tangible Investment unlike stocks
5. Low supply of apartment buildings
6. Easy to increase rents
7. Maintenance costs are lower
8. Contractor discounts due to size of buildings
9. Reducing Expenses is easier
10. Selling 1 building can fund your entire retirement.

Investing in apartment buildings is a profitable and easy plan to duplicate once you have done it successfully once. Although this is the big picture you can get an idea of the potential wealth that is capable with no money down.

How to Buy Apartment Buildings in Foreclosure and Become Wealthy

Buying apartment buildings that are in foreclosure is the equivalent to buying cars at a auto auction. You will get big discounts that can make you wealthy. The key to buying apartment buildings is understanding how to buy them in foreclosure.

1. Research – Most investors do their foreclosure research through the internet. The key to getting the best deals is right before they go into foreclosure and on the internet. How do you do this? Easy, you have to do a lot of leg work. Go to each of your local banks and ask to speak with the manager of the mortgage department. He can give you details into what apartment buildings may become available in the near future. The leg work will get you the deals before they ever become available to the general public online.

2. Financing – Since most banks want the buildings off their books they will likely require you to obtain your own financing through another bank or pay cash. Since most people do not have the cash they need to look for financing. The key to getting good financing comes down to a variety of factors.

a. Credit Score – The higher your credit score the more the bank will finance.

b. Income – The higher your income the more the bank will lend you.

c. Assets – The more assets you have the better.

3. Offer – When submitting an offer to the bank, money talks. The bank just wants to get rid of the property however they do not want any type of contingencies so you will be making the offer “as is”.

Submit your offer factoring all the potential problems that there might be.

Buying apartment buildings in foreclosure is the best and cheapest way to buy property. Once you understand the foreclosure process it is just a matter of financing it.

Apartment Sofas – Comfortable Living

If you are planning to move in another place or you just moved in, it is vital for you to choose the right furniture that fits your home. There are times when people don’t carry along their appliances and old belongings because they are too bulky for their new found apartment. In this case, you need apartment sofas that are easy to carry and come with stylish features and designs. Buying apartment sofas are not hard; you just got to have a particular idea on what type, design, and size you want for a sofa. There are ways to look for one, here are some helpful tips you can use:

1. Since there are different types of sofas, you need to determine the functions of a sofa in your new home. If you want a sofa that will be functional, you need a sleeper sofa so you will not buy for a separate sofa and bed anymore. This will enable you to save a lot of money in the long run too. Before buying one, you need to measure the size of the space where you want to place your sofa so that you can refer to the size taken when you shop for one.
2. You also need to look for apartment a sofa that matches the color and theme of your house. It will be odd looking if you buy one that looks awkward on the color and design of your apartment unless you want to be unique and you can carry it too. What you can do is to put some pillows on it that comes in variety of colors.
3. You should be aware of materials used in some sofas; there are cheap materials that can cause allergy to kids if you have kids with you. You should only buy from shops and brands that are reliable.
4. Before buying one, you should try the sofa first, if you feel comfortable, you should scrutinize first before buying one.
5. You also need to check the fabric if it is itchy or not. There are also sofas that have damages so you should also check because you might buy a damaged one without being aware.

Living in an apartment is not an excuse for you not to take care of your home. There are lots of people these days who are actually renting an apartment because they find it more economical than buying a new home. Although it is hard to live in a house that you don’t really own, the fun of living away from your family needs to be enjoyed too at times. You need to be very responsible and one way to do that is to choose your furniture and appliances. The demands for apartment sofas are higher these days because of so many people that are leasing. Transforming your unit to a nice home can be very relaxing and harmonious too. You should work on some things that will make you satisfied and happy even if you are living alone.

Apartment Investing – Launch Pad to Long Term Wealth

Downswings in the economy are never pretty. This time around the real estate market cycle is hitting a bottom far lower than anything we’ve seen in recent history. The sheer numbers of foreclosures across the country are staggering. But with all those foreclosed homes there is also feverish activity among investors, buying and flipping, short sale, quick-turning deals.

However, single family houses are not where the opportunity is. There is nothing wrong with buying single family homes, but they primarily cash generators, not wealth builders.

If you want to take advantage of the real opportunity during this recession you will focus on investing in apartment buildings. That is where true wealth will be achieved for those willing to pursue it.

Compared to single family homes, multi-family or apartment buildings are far superior from in terms of cashflow, but also far lower risk. A quick summary:

1) Cashflow, the main reason we invest in real estate to begin with. Investing in apartments gives you more cashflow simply because there are more families under the one roof generating more rents for you every month.

2) Less risk. Most people think the, bigger mortgage, more debt, bigger risk. It’s actually the opposite because of this fact; when you buy apartment buildings your risk of vacancies, and your exposure to monthly expenses are spread over multiple tenants, not one single tenant as you have renting single family.

3) Because of this misconception about risk there is far less competition from other investors when you buy apartment buildings. The big numbers generally make people fearful, and once stricken with fear most investors are unable to think things through to understand the favorable risk/reward ratio a good apartment investment offers. As a result they stick with the familiarity of SFH’s.

4) Mult-family investments benefit from economies of scale, which results in lower expenses per unit and higher overall cashflow. The more units in a complex the greater the economies of scale (up to a point), so in larger apartment investments the per unit expenses are lower leaving more income available for you.

5) As a result of the stronger cashflow freed up by economies of scale, the multi-family investor is able to hire a competent, professional property management company to collect rents and manage all other aspects of dealing with tenants and running the property. This allows you to be free of the property and be a true investor.

6) There is a greater reward for the perceived risk of investing in apartment buildings. Because they are at a higher price point than SFH’s, more dollars in value are generated in multi-family investments through appreciation. In a market appreciating at 10% per year a $150,000 SFH will go up in value $15,000, whereas a $2,000,000 apartment building in that same market will go up in value $200,000 during the same period of time.

When you look at the comparison above and really think through the benefits of apartment investing, the only reason any sane investor could have for buying a house would be to flip it for cash.

In addition to this, when you observe who the big fish investors are in your market you see they all have sizeable apartment portfolios that form the foundation of their wealth. As Lance Edwards says, “You don’t need to graduate from single family to multi-family, you can start building wealth straight away.”

If you want establish a family fortune that will grow over time and provide for future generations, apartments are the way to go, and now is the time to do it.

Apartment Rentals Make Sense in Today’s Economy

In the economic situation we’re in today, apartment rentals make more sense than ever. Owning a home is great, but apartment rentals stand the test of time when it comes to being practical, saving some money, and avoiding all kinds of hassle that homeownership brings.

Owning A Home Is Not For Everyone

It’s not that home ownership is a bad thing, but really just that many people would benefit from apartment rentals instead of buying before they’re really ready to buy. Apartment rentals are a great way for those just getting on their feet to start off in life. Plus, renting an apartment is usually the most affordable variety of housing, allowing renters to save up enough cash to make a more solid down payment on a house once the time is right.

Over the last ten years or so, banks were practically desperate to loan as much money as they could. After all, that’s how they make money and stay in business. It just so happens that mortgage lending was the perfect way to do that, because most of the time with mortgages, the home secures the amount borrowed. It’s was a win-win situation for banks.

However, the banks and mortgage lenders got a little bit too overzealous with their lending practices – they were lending all kinds of money to people who really shouldn’t have been buying homes in the first place. Instead, these real world folks would be much better off sticking to apartment rentals while saving up for a home they can really afford, not just buying a home that the bank says they can make the numbers work for.

More Benefits To Apartment Rentals

Yes, despite what the home loan lenders want everyone to believe, there really are a lot more benefits to an apartment rental than meets the eye. Besides living in an apartment to save money for a serious down payment on a home, many people absolutely love apartment rentals for a variety of additional reasons:

* Apartments are low maintenance – Usually all repairs and every day maintenance like mowing the lawn and shoveling snow are taken care of, saving all kinds of time and hassle.

* Apartment rentals don’t require a big commitment – Taking into account the standard six or twelve month leases, people that prefer not to be tied down are practically free to move about as they please.

* Renting apartments is wise in the short term – When you’re only planning on staying in an area for a year or two, apartment rentals are definitely the way to go, simply because the first couple of years worth of house payments only cover the closing costs anyway.

* There are no real estate taxes – There’s nothing worse than getting stuck with a several thousand dollar a year property tax bill, especially when just starting off in life. By renting instead of buying, the landlord is effectively picking up the tax bill for you.

Again, as mortgage lending continues to get stricter and stricter, thanks to the lending industry’s own lack of fiscal responsibility, there’s should be no shame in renting an apartment instead of buying a home. Just think, apartment rentals have been the traditional way to get started for decades and decades.

What to Look For When Buying Apartments

You have an entrepreneurial spirit and are planning to invest in rental real estate. You know you want to invest in individual apartments rather than apartment buildings. What should you be looking for when buying your investment apartments?

The Good News…

The good news about your entrepreneurial plan is that rental vacancies are going down and rents are increasing in many communities across the United States. And when compared with other types of real estate investments (like offices and retail centers), operating apartments is fairly basic.

There also are tax benefits to be gained including write-offs for expenses, deferred capital gains, depreciation write-off, etc.

The Search

Your search for potential investment apartments begins with identification and research. Take plenty of time to identify the type of apartment and neighborhood in which you wish to invest. What type of renters do you want to attract? What must your investment apartment offer to be of interest to your desired renter(s)? Consider some of these possibilities:

• Centrally located to schools, employment, transit system(s), etc.
• Close to amenities such as shopping and entertainment districts.
• Desirable in-unit amenities that might include a balcony, laundry, all appliances, etc.
• Special building features such as elevators, concierge and/or security services, in-complex meeting facilities, swimming pool, fitness center, and parking are also attractive amenities to renters.

Once you have created your criteria list, your research begins. Educate yourself as completely as possible on:

• The apartment real estate market in your area(s) of interest.
• Property taxes.
• Crime rates.
• Future development immediately around the building, neighborhood, and community.
• The number of listings and vacancies in each apartment building of interest.
• Obtain sales comparables from the real estate agent.

As you evaluate each property, your information-gathering deepens:

• Ask for “actual” income and expenses reports for each property.

• Identify the maintenance charges for each unit including municipal, property, and assessment taxes, water and electricity charges, security, HOA fees, parking fees, etc.

• Experienced investors caution against underestimating a property’s operating expenses. Prepare a spreadsheet of projected operating expenses for each potential investment unit. Get a second opinion of your projected expenses from someone experienced in similar real estate investments.

• Complete due diligence on the financial, legal, and physical condition of each apartment to uncover any potential problems before closing the deal.

• Obtain an estimate of insurance for each property. Expect that natural disasters can happen. Know how much insurance you must carry per each apartment you are considering for an investment.

Reality Check

It may be difficult to keep your enthusiasm in check when you are in investment mode. Among the most important ways you can help yourself are to:

• Have Realistic Expectations: experienced investors know better than to fall in love with a property. They suggest you fall in love with the deal, not the property. The apartment that is absolutely lovely but is not in an economically healthy community, or is in a building with multiple structural issues is not a lovely investment.

• Ensure Your Financial Health: don’t invest from a desperate need to turn an immediate profit. Ensure that your finances are healthy enough to ride the initial ups and downs until your property begins to produce a steady cash flow.

Investing in apartments is often an affordable way to enter the investment property market. But just as with any other property investment, there is much to learn and plan for before you close the deal. Keep in mind your budget, your objectives, and the knowledge you have gained about the apartment market and you’ll be off to a good start.