Most investors understand that the housing market goes in
cycles. There are times when the market is doing great, and prices keep going
up and up. Conversely, there are other times when the market is in a slump and
the prices are depressed-that’s where we are right now. And while many people
see the down market as a bad thing, with the help of usreeb advisors a number of people can learn to try and capitalize
on multifamily real estate investments when the market is down. With their
help, you can profit even more when the market makes its way back up.
There is More to Real Estate Investing Than You Might Think
Investing in RE is more than just buying a house that is
undervalued. Sure an undervalued home can be a good investment, but it sets the
individual up for quite a bit of risk. Instead, a better way to make a real
estate investment during a down market is to purchase multi-family units.
Apartment buildings provide numerous streams of income from one property. That
said, there are a number of benefits to multi-family properties.
The Many Advantages of Multifamily Investing
The biggest advantage to purchasing a building with multiple
units is that there will almost never be a time when all the units are empty.
This means that even in the event that a tenant decides to move out, you will
still have revenue coming in from other tenants to help pay for the mortgage on
the building. Of course, there is no guarantee that the units will always be
filled, but it is less risky that investing in a single unit building. The law
of averages works in your favor.
Now you might be thinking that with a property that has
multiple units, there are also many more things that can go wrong. Along with
more units come more upkeep and maintenance issues. But this problem can be
solved by hiring a handyman service. By leasing a unit to a handy-man and not
charging any rent, the building will stay well maintained, and you can avoid
the cost out of pocket costs.
What about the Fact
that Multifamily Real Estate is More Expensive?
usreeb says some
might say that the downside to purchasing a multi-unit property is the price
tag can be a bit higher than on a smaller single family residence. While this
can be a detriment to those who are having trouble getting a loan, it is not
always as big a deal as you might think. Many lenders will count signed leases
as income, allowing the person purchasing the building to qualify for a much
larger loan. You can also go in with other investors on a multifamily property,
cutting down on the size of your initial investment.
Decrease Risk by
Hiring Real Estate Investment Advisors
It’s true that there are no guarantees with any investment.
But there are ways to lessen the risk when investing in RE. Having a little
business sense, and hiring the right real estate advisors will help a person
learn how to mitigate risks and how to properly purchase, manage, and profit
from multi-family properties.
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