Want to Become Rich? Start Investing in Apartment Buildings!

By Robert MacPherson

It is not easy to become rich. Investing in real estate is one of the safest ways of becoming rich. Most rich people own a lot of real estate, it is considered to be a safe investment. Commercial real estate is often dismissed as too risky and too much money is needed. But by going for commercial real estate you can quickly become financially free. And it is easier to get started than you think.

Apartment buildings are considered commercial real estate if they contain four or more units. Buildings with less than four units are residential deals. In many ways apartment buildings are the perfect gateway into the lucrative world of commercial real estate. By investing in apartment buildings you get a handsome positive cash flow. In the residential sector you need a lot of units before the cash flow starts to become significant. And you may have to wait for years before you have a good positive cash flow. Commercial deals on the other hand, generally give you a very good cash flow from the beginning. One single deal often gives you a positive cash flow of a couple of thousands dollars per month. And these are small to medium deals, bigger deals generally mean much larger income.

In order to get your first apartment building you need to find a motivated seller. Since you can only borrow 70-75% of the value of the building you want the seller to provide you with a second mortgage. Alternatively, you could go for a lease option. In this case you lease the building from the owner for a couple of years and you have the right but not the obligation to buy the building before the option expires.

It is not easy to get the first apartment building but once you get the first one, the next ones will be much easier to get. Given the big money in commercial real estate, it is well worth trying to get started. The biggest problem is to muster up enough courage, the numbers are big. But that means that your profits will be big as well and you will be on your way of becoming rich.

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