Flipping Apartment Complexes... really that tough? 3 myths debunked.
Most real estate investors think that flipping apartment complexes is our of their price range and ability. The entire workflow of wholesaling multi-family units has a resemblance to flipping single family homes, and given the bad assumptions of the endeavor, its easier to take advantage of this niche market of real estate investing. Current market conditions have created circumstances that the educated real estate investor can cash in on.
Here are a few common misconceptions about multi-family units (apartment complexes)
Myth 1... Bad credit means no deal! Not true! Banks actually care LESS about credit scores with apartment complexes. Banks know for a fact, private individuals rarely have the capital and cash needed to even get a downpayment on large multi-family complexes. What they truely look for is using the apartment complex itself as collateral... or also known as a non-recourse loan. The investor's credit score is NOT a factor.
2. You need a lot of money to invest in apartment complexes FALSE! Apartments, as part of the commercial asset class, have a long-standing tradition of being bought with other people's money. The use of limited partnerships and syndicates bringing together private investors to do these deals is very typical. And with the current economy there is no shortage of people realizing the HUGE income potential and tax benefits of investing in apartment complexes.
3. Apartment deals are more difficult deals than single-family homes. FALSE! It's quite the opposite. Property management is commonplace. Finding buyers is a snap and the competition is practically ZERO. Don't let the bigger numbers scare you. It simply means more zeros on your assignment fee checks.
Take these myths and use them as motivation to start flipping apartment complexes. They are not insurmountable mountains of deals going dead. It's amazing that those non-existent obstacles have created a vacuum for real business to get done, for the professional and informed real estate investor. - 23221
Here are a few common misconceptions about multi-family units (apartment complexes)
Myth 1... Bad credit means no deal! Not true! Banks actually care LESS about credit scores with apartment complexes. Banks know for a fact, private individuals rarely have the capital and cash needed to even get a downpayment on large multi-family complexes. What they truely look for is using the apartment complex itself as collateral... or also known as a non-recourse loan. The investor's credit score is NOT a factor.
2. You need a lot of money to invest in apartment complexes FALSE! Apartments, as part of the commercial asset class, have a long-standing tradition of being bought with other people's money. The use of limited partnerships and syndicates bringing together private investors to do these deals is very typical. And with the current economy there is no shortage of people realizing the HUGE income potential and tax benefits of investing in apartment complexes.
3. Apartment deals are more difficult deals than single-family homes. FALSE! It's quite the opposite. Property management is commonplace. Finding buyers is a snap and the competition is practically ZERO. Don't let the bigger numbers scare you. It simply means more zeros on your assignment fee checks.
Take these myths and use them as motivation to start flipping apartment complexes. They are not insurmountable mountains of deals going dead. It's amazing that those non-existent obstacles have created a vacuum for real business to get done, for the professional and informed real estate investor. - 23221
About the Author:
Michael Kimble is a successful real estate investor, specializing in marketing. Wholesale Real Estate, is his site, where he gives away 7 free marketing systems for other investors.
posted by X - Men @ 3:12 AM
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