This week I bring to you a post by Jeff who provides an introduction into how to invest in multi-family apartments.
Jeff explains what the CAP Rate is, something that’s used a lot in America. In the UK, we tend to us Net Yield. The difference between the two being Net Yield includes the mortgage payments. As result, the CAP rate provides a return on an all-cash purchase and is useful for quickly comparing different properties without the fuss of varying mortgage rates for different types of properties.
I’ve yet to venture into multi-family investment. In fact, I haven’t even touched the step down below that: HMOs (house in multiple occupation). They just feels like a a bit a a headache for me on top of a day job as well. I’ve only invested in single family-type properties and I imagine this will be the case for the foreseeable future. Although the yields on HMOs and multi-family investments are very tempting!
[The original version of this article was crafted by Jeff from The Kickass Entrepreneur. The article was published on The Money Mix and is republished here with permission.]
Do you want to create massive wealth investing in multi-family apartments via investment real estate?
Let me show you how.
Most people believe the best way to build wealth in real estate is to buy a REIT (real estate investment trust), which you can easily buy on the stock market.
And there’s nothing wrong with investing in the stock market, or, buying a REIT for that matter, but, the serious wealth, the kind of money that propels you into the top 1%, is made by those individuals who understand the fundamentals of how to strategically value, buy, upgrade, and sell their own properties.
According to this Forbes magazine article, “How the World’s Billionaires Got So Rich,” real estate and business ownership are at the top of the list.
And that’s what I am going to explain in this post. Fortunately, you don’t need to be a real estate guru to buy your first property, I will show you, step-by-step:
– how investment real estate is valued, and specifically multi-family apartments
– examples of how to make a return on your investment
– how I made a 344% return in two months
And then I’ll walk you through an example of a property that I am considering, where I stand to make over $4.5 million profit inside three years.
I wrote this post with the beginner investor in mind. The things I write about are things I wish someone had explained to me before I started down my real estate path over ten years ago.
The post How to Make Money Investing in Multi-Family Apartments appeared first on Cashflow Cop.
