There isn’t much that is more rewarding than being really good at making money. If you learn to create wealth properly, then you can start living the life that you dreamed of. What do you want? Is it your dream home you want? Maybe you want to take vacations to exotic islands to work on your tan. Whatever you desire can be yours!
Of course, working at a job isn’t going to allow you to reach your financial goals. You need to get involved in something that can make you more money than a job can provide. You need to do something that can create life changing wealth. For example, more millionaires have been created by investing in real estate than all other ways to make money combined. If so many others achieved success through real estate, then it is probably a great investing path that you should consider for yourself.
As a beginner, the best way to learn about real estate is by joining a national real estate investors association, such as National REIA. An association is a great place to find a mentor. The training that they provide new investors can cut years off of your learning curve. Plus, you will meet other newbies to investing that will be invaluable connections for your investment plan in the future.
The easiest way to get started in real estate investing is by investing in multi-family residential properties. Investing in good rental units is a solid pathway to financial success that millions of investors have found to be reliable in the past. One good multi-family purchase can set you up financially for the rest of your life.
Here are some of the benefits of why investing in multi-family units is a great plan:
Multi-family properties are very easy to obtain financing to purchase. If you purchase a property with more than four units, then the bank will look at the income of the property instead of your own financial statement. Also, many multi-family properties are sold with owner financing.
Cost Effective Maintenance
If you purchase a multi-family apartment as an investment, then the maintenance costs are spread out over all the units. You have multiple units bringing in income each month, but you only have one foundation and roof that needs to be maintained. If you have many units and a couple of the units go vacant one month, then the income from the rented units will prevent the vacancies from becoming a financial burden.
Appreciation Can Make You Wealthy
The most beautiful aspect of owning multi-family apartments is that your apartments increase in value. Focusing on real estate appreciation is perfect for someone planning for retirement in the future by selling their apartments and cashing out. Selling your property can be a perfect option for you when you combine the appreciation of the units with the fact that your mortgage will eventually be paid off. You end up selling your property for a huge amount of cash, and the new seller gets to deal with the hassles of managing the property.
Huge Growth Potential
If you invest in single-family homes, then there are only so many that you can manage before it becomes a logistical nightmare. Also, hiring a management company for your single-family properties can be cost-prohibitive. The reason apartments are so profitable is that you can keep management and maintenance workers on one property with no travel needed. Plus, you can hire a property manager to live at the property to take care of the demands of the property.
Tax Benefits are Huge
Another great reason to invest in multi-family properties is that you get amazing tax advantages for doing so. Most multi-family apartment owners pay very little taxes on the income from their properties. The tax code is set up so that you can write off all the expenses of maintaining and managing the units. In addition, the owner is allowed to depreciate the purchase price of the apartment to offset the rental income. Of course, you will eventually have to pay taxes on the amount that you depreciate if you sell the building in the future.
Investing in multi-family apartments can be the smartest financial decision of your lifetime. The benefits of multi-family ownership are many, and income will continue to flow in for the rest of your life. Even a small investment today can result in huge returns in the future.