Investing in apartment real estate can be lucrative, especially if you purchase properties in the right market at the right time. Returns can be greater than the stock market, and leverage allows you to fund future investments without using a single dime of your own money.
Multifamily investing can help build your fortune in many ways.
Multifamily Properties Generate More Cash Flow
Multifamily properties have the potential to generate more cash flow compared to single-family properties. Profits are higher because expenses are generally lower.
Rather than having multiple properties spread across a city or several cities, you have multiple units under a single roof. This makes it easier and more cost effective to handle repairs and maintenance. Management is also easier and less costly.
Multifamily properties have multiple units, which naturally means higher cash flow. Moreover, you get the benefit of having one property tax bill.
Accrue Value for Large Payoffs
Real estate appreciates in value so long as market conditions are favorable. In the last few years, housing inventory has remained low and demand has remained high. What happens when demand outpaces supply?
If you want to build a fortune, hold on to these properties, reap the rewards of renting them out and then sell them in 20 years when their value has increased 80% to 100%. Real estate offers large payoffs and is an asset that can help generate massive wealth.
Leverage Real Estate to Grow Your Portfolio
Want to achieve high returns? Use your multi-family or apartment real estate to make future investments. How? Leverage. Your real estate holds a lot of value and can be used to secure loans for more property.
You can take a loan out against your investment to purchase the hot IPO that just hit the S&P 500, or you can purchase the multi-family unit that you don’t have the liquidity to buy without a cash infusion of some kind.
As you continue to invest in more properties, you’ll grow your portfolio and accrue more value in the properties you own.
This is where you can truly build your fortune.
When you own real estate, you will:
- Generate monthly income
- Own an asset that appreciates in value
- Have the opportunity to sell the asset at a major return on investment
Real estate is one of the biggest wealth builders possible, and you’ll have the opportunity to leverage it to make more money.
Fortune building takes time, but if you use the right investment vehicles and continue investing in your portfolio, you’ll slowly see your wealth increase.
The Bottom Line
Investing in multifamily properties can help you build your wealth. Apartment buildings generate more cash flow compared to single-family properties, and appreciation allows you to enjoy bigger payoffs when it comes time to sell. Leverage allows you to fund future investments without emptying your pockets. All of these factors add up and create a snowball effect to help you generate more wealth.
Click here to schedule an introductory call to learn how real estate investing can help you build your fortune.