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 3 common myths about flipping apartment complexes debunked...
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.
Myth 2. The real estate investor needs huge amounts of dough to flip apartment complexes. Again, NOT true. Apartments fall in the commercial asset class, traditionally have always been bought with other people's money. They fall in the realm of using limited partnerships and syndicates to pool resources of a host of players and investors, to get these deals done. Given today's economy, investors and big players are looking for these apartment complex deals. It just makes good financial sense.
Myth 3... Apartment deals are just too difficult in comparison to flipping single-family homes. Untrue! Flipping apartment complexes is hassle-free by contrast. Most investors are intimidated by the larger numbers in these deals. That means less competition, and more buyers for your apartment deals. Property management companies are hungry for more business, to handle the day to day issues. Put those big numbers in these deals as fat zeroes on your assignment fee checks.
Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people's money makes it the perfect opportunity for today's investing conditions. They just aren't the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing. - 23210
Here are 3 common myths about flipping apartment complexes debunked...
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.
Myth 2. The real estate investor needs huge amounts of dough to flip apartment complexes. Again, NOT true. Apartments fall in the commercial asset class, traditionally have always been bought with other people's money. They fall in the realm of using limited partnerships and syndicates to pool resources of a host of players and investors, to get these deals done. Given today's economy, investors and big players are looking for these apartment complex deals. It just makes good financial sense.
Myth 3... Apartment deals are just too difficult in comparison to flipping single-family homes. Untrue! Flipping apartment complexes is hassle-free by contrast. Most investors are intimidated by the larger numbers in these deals. That means less competition, and more buyers for your apartment deals. Property management companies are hungry for more business, to handle the day to day issues. Put those big numbers in these deals as fat zeroes on your assignment fee checks.
Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people's money makes it the perfect opportunity for today's investing conditions. They just aren't the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing. - 23210
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.
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