Multi-family dwellings provide a sounder basis for real estate investors
The popular adage goes that when the going gets tough the tough get going but I much prefer a variation of it that goes when the going gets tough the tough get smart. Success in real estate investment as a career depends on your ability to work smarter rather than just harder and for that you need to have a clear focus on what you are doing and why.
Having spent the best part of a decade building a personal fortune that's given me over a million dollars in the bank and more than 4,000 apartments spread across six states I have a predilection for clear focus and smart planning which I will explain now.
When you deal in real estate you essentially invest your time and effort (and I am not even going to talk about the money involved in this here) and you have a right to expect in return to make money from that. Each deal is there to provide you either with a profit from the sale (whether you renovate and upsell or simply flip a property for a quick profit is irrelevant here) or a parallel income stream which will become the basis of a growing income from your real estate investment activities.
Because the 'investment' you put in each real estate deal is roughly equal (particularly difficult and time-consuming projects either have a higher pay-off as compensation or are simply the result of error of judgement on your part) the smart element of planning goes into picking projects which will give you a maximum return for your investment.
In plain speak this means that if you focus on single-family dwellings you need to concentrate on the high-end of the market where the money is big or else you need to focus on multi-family dwellings as a way of setting up parallel income streams that will give you money and keep on giving you money month after month with minimum risks (because the risks usually associated with tenancy are spread amongst a large number of tenants as opposed to just one).
Multi-family dwellings also allow you to achieve savings in other ways. They create an economy of scale which works in your favour when it comes to finding a supply firm for materials necessary for repairs and upgrades. They create an economy of scale which allows you to negotiate good deals when it comes to finding a management company which will deal with your tenants for you so you never have to even see or talk to a single tenant in your life.
Multi-family dwellings allow you to create a sounder basis for your investments and because the effort involved in closing a deal is approximately the same as that involved in a single-family dwelling, they are a much better return for your time.
Having spent the best part of a decade building a personal fortune that's given me over a million dollars in the bank and more than 4,000 apartments spread across six states I have a predilection for clear focus and smart planning which I will explain now.
When you deal in real estate you essentially invest your time and effort (and I am not even going to talk about the money involved in this here) and you have a right to expect in return to make money from that. Each deal is there to provide you either with a profit from the sale (whether you renovate and upsell or simply flip a property for a quick profit is irrelevant here) or a parallel income stream which will become the basis of a growing income from your real estate investment activities.
Because the 'investment' you put in each real estate deal is roughly equal (particularly difficult and time-consuming projects either have a higher pay-off as compensation or are simply the result of error of judgement on your part) the smart element of planning goes into picking projects which will give you a maximum return for your investment.
In plain speak this means that if you focus on single-family dwellings you need to concentrate on the high-end of the market where the money is big or else you need to focus on multi-family dwellings as a way of setting up parallel income streams that will give you money and keep on giving you money month after month with minimum risks (because the risks usually associated with tenancy are spread amongst a large number of tenants as opposed to just one).
Multi-family dwellings also allow you to achieve savings in other ways. They create an economy of scale which works in your favour when it comes to finding a supply firm for materials necessary for repairs and upgrades. They create an economy of scale which allows you to negotiate good deals when it comes to finding a management company which will deal with your tenants for you so you never have to even see or talk to a single tenant in your life.
Multi-family dwellings allow you to create a sounder basis for your investments and because the effort involved in closing a deal is approximately the same as that involved in a single-family dwelling, they are a much better return for your time.
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