I use to feel very intimidated by the prospects of real estate investing. For one, it seem you need to have lots of cash to put in or be able to borrow money on your personal credit which would mean lots of liability when things fail. I decided to research the topic to some extent especially since I am an engineer and would like to really see whats good and bad about this market. Surprisingly, this is a case where bigger is definitely better.
Here is the drill, chances are that if you try to buy a single family home with some creative financing technique, it would be very difficult to convince the owner when they are probably trying to buy another home or other immediate needs. To cut to the chase, I like the idea of commercial multi-family units. Lets face it. If you were to buy a multi-unit with say 20 units, it's likely that you would worry less about a few renters leaving as oppose to renting a single family unit. Secondly, most importantly, you can get financing much easier than with single units and even with no money down. Sound too good to be true? no. Reason, it all comes down to the equity and income potential of property.
With the residential housing market in such a bad state large rental units will do well and always will generate income since for different reasons people need rentals.
Here is where I can help. I am focused property Scouting, so I would pre-qualify the units for you at no upfront cost, then I can refer you to an excellent financing source that will blow your mind away with innovations they have in funding properties. The key here is that its not a slam dunk, we would need to find an attractive property to get the best of this option. Lets say you want to make the magical $120K per annum income. This is not very hard to find with one good well financed property. Now imagine having several of those? I am sure you get the picture.
Here is a great video to build your motivation in real estate investing.
Request the free e-book on this page and you would get to be part of my network.
Real Estate Investment for Income
Monday, June 2, 2008 | Posted by Morley at 7:54 PM | Labels: investment properties, multi-family units, real estate investing
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