Definitive Reasons to Invest in Multifamily Real Estate

Pandemic is still there. The stocks are down. Yes, it is not the best time to invest your
money. But only few knows that real Estate can be alternative for those who cannot stand the
atrocities and outrages of the stock market. It is also an excellent investment for those investors
who are eyeing a dynamic process in increasing their capital, instead of passive income by
putting their money in to a fund which is practically managed by other people. One of the many
advantages in real estate investment is that there are an array of techniques in which one can
succeed.

Some notable names in the real estate investment are Zhang Xin and Donald Bren who
built their empire by developing various commercial and residential properties. Some obtain
their wealth by obtaining an income-producing portfolio of rental properties. Have you heard of
house flipping? Other real Estate investor have made several million dollars by flipping
properties. These people buy properties that are in despair for cents on the dollar and remodeling
them before they sell to a new owner.

We always have to be remembered owning a rental estate can be a fantastic way to

Real Estate investment is the most excellent way of investing for those people who are
eyeing for an added source of income together with a steady increase in their portfolio. When
talking about residential real estate, there are two major classification of properties that one can
invest in: single-family and multifamily. As the name suggests, single-family properties are
residential buildings with only sole available unit for rental while on the other hand, multifamily
properties or more commonly known as apartment units are residential properties than possesses
more than one unit of rental space.

Listed below are some benefits to investing in multifamily real estate investment. Here
are three major reasons to mull over on why you should choose to invest in such:

1. Expensive but a lot easier to finance. In majority of the case, the cost to obtain an
apartment building will surely be a lot as compared to a single unit investment. The
investment can surely go up to millions. At the onset, you might think that securing a
loan from single unit properties would be less tedious than trying to come up for
multifamily property complex, but the truth of the matter is the latter is more likely to be
approved easily for loan as compared to the average home.
It is a given fact that multifamily properties generate a steady flow of income on a
monthly basis. This is perfectly alright even if the complex has a couple of tenants who
are late at their rental payments. Imagine if a tenant from a single-family property moves
out, the entire property is practically vacant. No income flow for the next several days,
months or so.
 Further, a ten-unit apartment, with one or two vacancies would be at most, 20 % vacant.
And when we translate it to investment, there is a small probability of a foreclosure. The
risk in a single unit investment is very high. All of these will translate in to a less risky
investment for a lending company. Thus, can even translate in to a more practical interest
rate for the owner.

2. Crowd funding. This will be the “in” thing before the year ends. You can easily invest in
large properties if you pool individual capitals to come up with a larger capital. This will
help stimulate the economy. This will be a win-win situation, you invest together with
your friends, and you help the economy to slowly get back on track. Passive investors can
also be of great help. These are people who simply invest their money because they have
extra and do not mingle with the management and intricacies of the investment.

3. Enhancing your portfolio will not take you any longer. Multi-family real estate
investment is also applicable for property investors who wants to create a strong huge
portfolio or rental properties. Obtaining a large ten (10) multi-family property is a lot
efficient in terms of application than purchasing ten (10) single-family properties.

In the latter option, you will be dealing with several sellers and conduct inspection
individually. To add, in some scenarios, this choice would also need an investor to open
up ten (10) different individual applications for each single-family unit. All of this
tedious legworks not to mention the headache could simply be avoided by leaning
towards purchasing a multi-family complex.

4. You have control in which Property Management to hire. Granting for argument’s
sake that you do not want to manage your own property, hiring a property management
company to handle the daily dose of transactions and operations of your rental is the way
to go. A property manager usually gets a percentage of the monthly income that a
property obtains, and their responsibilities must include screening and looking for
tenants, collecting rental payments, handling eviction and ejectment issues, and
maintaining the property.

A lot of real estate investors who own a single or two unit single-family property do not
have the freedom of hiring an external property manager simply because it is not
financially wise because of their small portfolio. The value of money that multi-family
properties generates on a monthly basis will surely give the investors a huge room to take
advantage of property management services without having to cut their margins.

Bird’s Eye View

Similar to stocks, real estate investment will give you freedom to be successful through
an array of different techniques. One of the most famous method of investing it to own a
complex of rental properties. When you want a better type of investment, engage in multi-family
real estate investment.
A Beginner’s Guide to Multifamily Real Estate Investment

Included in the series “it doesn’t take millions to be a queen”, this article will unravel the
ultimate guide to multifamily real estate investment. Amidst the pandemic and all the things that
occurred for the past several months, it is very timely to discuss these things since we need to be
more careful where to put our money. The truth of the matter is, now is the best time to invest in
real estate.

Listed below are important notes to mull over when looking for a multifamily real estate
investment:

 When trying to deal with somebody, maintain a discreet attitude by not sharing
everything. Just go over their documents and prospectus and swiftly know the efficiency
and how effective their deal is going to work. It is very imperative to have an idea of the
present climate such as the loan condition and structure. You have to study the ins and
outs of different loans because this will give you a significant amount of savings that will
be practically realized in long term.

 You have to be very careful with the terms and conditions of the investment because at
the end of the day, it is a collective decision and everyone is affected by the monetary
consequences of the deal.

 You have to realize the present situation of the market and study it thoroughly especially
if you are a rookie to investing or if you simply want to get a lot better at coming up with
an effective system.

 Try to look for free prospectus and learning materials regarding investment and financial
literacy over the internet. There are tons of free materials relating to each and every
scenario that you can obtain by searching online. Avail of these materials.

 There are also tools that you can use to aid you in investing ni multifamily investment
properly. Real Estate IQ has tools to run competitive market analysis without MLS.

 You have to know what type of offering you get in to because not everyone can be able to
invest on anything. It has several considerations before you can be allowed to come in to
the deal. Take the case of a Duplex Card, when investing for this type, try to manage your
personal income statement as well as the debt to income ratio because that would
generally reflect on your credit standing. Income shall not only be the sole basis of your
purchasing power. So in the ca
  Try to come up with your own Mission and Vision. It is also important to have a mission
and a vision because this would be utilized as a driving force for you to succeed. You
should come up with a specific “why” on your end. This should be related and this should
be your motivation to reach your goal. Your mission and your vision will practically put
you in place and eliminate untoward and irrational decisions and instead, eye for long
term with a conservative outlook. This will surely bring you less stress.

The L’s in Multifamily Real Estate Investment

Real Estate investing in Dallas is slowly becoming famous as there are a lot of properties in
foreclosure amidst the pandemic. With such a significant listings of properties available for sale,
a real estate investor must be able to know which one to buy. Real Estate investors in Dallas
must be able to follow six steps to understand, learn and attain Dallas real Estate success. These
are as follows:

 Long Term. Investing in Multifamily real estate is a sure fire long term method. Do not
be in a hurry of being a millionaire. Rome was not built overnight. It will take you years
or perseverance and hard work to be able to succeed. A multiple unit property can be
maximized in long term proposition. Taxes are much lower and the income gained will
aid you in repairs, renovations, and increasing its value. Tons of investors bought
properties in the middle of real estate boom with no equity and money. How much more
when you invest your money during these critical times? Significant number of
multifamily properties are facing foreclosure simply because investors are caught in the
middle. Long term investing for Dallas multifamily real estate is the key to a flourishing
career.

 Location. This is the key to purchasing properties in Dallas. At this point, the price is
significantly low. Looks for properties in excellent locations all over Dallas with
proximity to anything like schools, churches, groceries, bus stops and food centers.
Oftentimes, it is more practical to purchase a bit of a higher price in a good location than
getting a bargain in a location where it is very hard to rent. In a multifamily real estate
investment, location is often overlooked as many investor think they can grow with bad
location if the price is practically low. Two similar properties, the one with the best
location will dictate a much lucrative return of investment and rental income. Location is
the prime consideration when buying or investing in Dallas real estate. Basically, the
technique is to buy in a higher class neighborhood in Dallas.

 Local. Purchase multifamily property within proximity to where you live. Keep real
estate investing, local. Buy within the city of Dallas so you have a deep knowledge of the
community. The Dallas real estate investor should scrutinize the property to determine
 the extent of repairs and other problems. An investor who is a bit far from the property
cannot perform regular routine inspections. Otherwise, you need a property manager.
Dallas, Fort Worth comes out in the open being the most recession resilient market that
there is. You can basically see properties at a good prices and there is so much meat on
the bones.

 Lease. Avoid renting a property with a lease option to buy. When you sell, you sell. A
lease option will bring you complication in the end. Tenants tend to demand a huge
chunk of discount of the rent to go towards the closing costs. Another loophole is that
tenant will not surely purchase the property at the end of the lease and the owner/investor
will have a wasted income because of such rebates and discounts. In multifamily units,
there is a small chance that tenants will purchase one unit. That is why it is a firm
decision to engage in this kind of investment.

 Leverage. Most of the tools found elsewhere will teach you to utilize other people’s
money when buying a property. This method is not stellar at all as there are other
techniques like crowd funding that can be able to purchase the property in cash.
Purchasing a multifamily property in Dallas will end you up in a good deal and you have
leverage to negotiate. You have to remember that a cash buyer shall always have an edge
in negotiating with property owners and other sellers. Cash buyers will always save them
from a possible foreclosure in the event of economic downturn. Say, at present, during
covid-19 pandemic.

 Learn. You have to study the prospective property in Dallas. A possible mistake in
Dallas Real Estate investing can be very expensive. The principle is that you make your
money when you purchase and not when you sell. Purchasing the property at the wrong
place and at the wrong time could be harmful. One serious mistake could ignite a
significant loss of what you have started. Ask questions from experts. Learn and educate
yourself in all the facets of real estate before you purchase the asset. There are tools that
can aid you in this industry. For those who do not have access to MLS, this will be your
best buddy. This is a tried and tested tool and a lot of investor has landed on their initial
deals with the help of this tool. Real Estate IQ has tools to run competitive market
analysis without MLS>

Truly indeed, when you invest in multifamily properties in Dallas, you are the boss and
anything you do that is possible in the world is possible. It just all depends if you abode by the
parameters mentioned above.

What is your “why’ in Multifamily Real Estate Investment?

The Mission and vision should be coming up with liberty to invest through real estate as a person
with your means permit. Your capacity without any control. Having the liberty to possess a
steady cash flow on a monthly basis is great simply because you can just be yourself. And you
are living your life the way you wanted it to be. By this regard, when you have the capability to
be still and have that freedom, you will be able to think more and invest your money properly.

Going back, your specific “why” should be inclined with your present condition with your
present life; it varies. So if you are eyeing to get in to investing, and you are looking at
transitioning from single family quad plex to duplex or even commercial, there will surely be
leads that is tailored to your preference that the real estate IQ has in stored for you.

However, you have to consider the present economic conditions due to Covd-19. There
are certain factors to take into consideration before engaging in investment. Like the present
pandemic situation, you have to know the ins and outs on how to deal during these trying times.
We listed some shocking facts of the current state of the real estate investment industry and some
solutions.

It is a known fact that the great recession started depression. In the 1930s, that was the
time when independently wealthy individuals stimulated the economy for the nation to get afloat.
Here are shocking truths:

 At present, the United States equity markets are trading lower than the average trade and
is continuing to get lower at this point. Twenty five (25) million will be unemployed as
predicted by Goldman Sachs as of May 2020 and is still rising up to this point.

 And because all of these equity investments are dropping drastically, multifamily
investment is dropping as well because one way or the other they are related. However,
there are still deals here and there, but is going at a very slow rate.

 Unemployment rate is increasing and loss of jobs is rapidly growing, even the stimulus
package given by the government cannot augment the loss that each citizen is incurring;
the economic injury.

 Covid-19 has made a great impact and is continuing to affect the investment industry. It
is imperative to adopt to the “new normal” and look for measures to alleviate and
facilitate efficient investment without face-to-face contact with clients. There are other
tools that you can be able to utilize like social media and video conferencing. Since one
cannot be able to go to an actual trip, a 3d virtual model is the most effective way to show
the client of the prospect unit.
  Sales volume hits a shocking decrease during covid-19 so expect a high volume of loan
applications. People tend not to purchase anything because of this pandemic and you see
the effect on people, their confidence in purchasing is very low. There will surely be
more loans that will manifest in the near future. So a more competitive loan for every
agency will appear. Multifamily loans will be a lot competitive these coming days and so
a mission driven deal will basically depend on the level of income and rent for the
location. Each client differs as per needs.

Looking at the bright perspective, you can basically help stimulate the economy. To date,
multifamily investment industry remains to be strong as compared to the healthcare and retail
industries. The rentals remains to be strong and a minimal increase of 1.1 to 2.3% in delinquency
remains to be competitive. But then again, these date might change in a short period of time.

However, crowd funding can basically help rouse the economy. This may be a great time to look
for different sources of capital. And your money, when pooled together with other individual can
totally make a difference. It means that a larger capital can be invested and can basically acquire
larger properties in real estate.