When most people hear about the millions of dollars investors make buying and selling real estate, the majority of them think about homes and duplexes. That’s because nearly everyone starts in the single family market.

But they don’t have to. The main reason investors start out buying homes is because they’ve heard all the stories or watched an infomercial where some guru is pitching the latest and greatest “no money down” technique. Buyers think they can purchase homes with no cash using a variety of methods including foreclosure, rehab, fix and flip, subject to, lease option, partnerships, wholesaling and more. And they’re right-you can buy homes that way. But you can do the same thing with apartment buildings.

The benefits of investing in multifamily properties are out of this world. I haven’t found a single reason not to invest in apartment buildings. Let’s review five of the top reasons apartments simply make more sense.

Apartments almost always provide a more affordable housing option:

I can’t get into all the economics explaining why apartments provide a more affordable housing option in this article because it would turn into a book. So let’s try to simplify it. The difference between the amount of rental and mortgage payments consumers spend each month is what I call the “gap”. Picture a bar graph where the average rent is $600 per month and the average mortgage is $1,000. The difference is the gap. As the gap increases fewer people can afford to purchase a home. There are only two ways the gap can get bigger. First, the mortgage payment increases or second, rental rates decrease. Most of the time rents do not decline, at least not significantly.

Mortgages, on the other hand, usually increase. If enough homes exist in the market, to meet demand, builders stop building. When demand catches up, they start developing again, because it becomes profitable. That means prices increase, and with them, mortgages. As mortgages increase the gap gets bigger and we experience greater demand for apartment rentals and that pushes rent higher. Rent growth always follows mortgage growth. This is one of the best reasons to buy an apartment building.

Somebody else manages the property:

One of the biggest advantages of buying apartment buildings is leverage. All real estate investors understand the term leverage, but most relate the term to money. There are lots of ways to leverage; money is just one of several. When you buy apartments, you leverage off the work and effort of other people because you can afford it. A lot of investors don’t want to be property managers-I’m one of them. Others don’t trust them and with good reason. But if you take the necessary steps, you’ll enjoy the benefits of apartment building ownership (cash flow, appreciation, tax advantages, or principal reduction or a combination of them) for many, many years to come. The best part? Somebody else does all the work.

The numbers make more sense:

When you buy single family homes and 2-4 unit properties your expenses usually consist of taxes and insurance. If you’re lucky, you might find one other line item such as management or utilities. But that doesn’t mean other expenses don’t exist. We all know there will be turnover, resident issues and the like. When you buy apartment buildings, expenses include taxes, insurance, utilities, maintenance, management, advertising and much more. Not only that, but you get to spread out the cost of maintaining the property across more units. The economies of scale are far superior to homes and 2-4 unit properties. For example, if you have a total of 20 houses, you have 20 different roofs. You also have 20 different utility bills, tax statements, mortgage payments and who knows how much time you’ll spend traveling from property to property. The numbers just make more sense with apartments.

Increase income (and property value) and spend very little doing it:

I have personally bought and sold many apartments where I didn’t spend a penny improving the property, yet I increased the value hundreds of thousands of dollars. While doing it, I also improved cash flow. “Forcing appreciation” on an apartment building can be as simple as increasing income and decreasing operating expense. To increase value with most real estate, you have to spend money improving the look of it. But that’s not necessarily the case with apartments. You might not have to spend anything at all.

Less competition:

Most investors limit their potential by selecting properties that require conventional financing. Then they shop based on the amount of money they have. When you look for a car, one of the first questions the salesperson will ask you is, “What price range?” Then they try to fit a car into that range. It’s true that the number of opportunities increases in relation to the amount of money you have available, but that’s the worst way to shop. There are lots of ways to buy apartments with no money, and because most buyers are looking for homes, you eliminate a majority of the competition when you invest in apartments.

Again, these are not all of the benefits to owning apartments, but it is a good start. I encourage you to check out The Successful Real Estate Investor, which is the first course many investors take to build a foundation for their overall investment plan. Once you do that, you’ll understand how and why investing in apartment buildings can make all your dreams come true.



Quick Property Sale

So i did the wrong thing and was late on my car payments, which resulted in a repossession to be issued on my car. I quickly got my payments up to date and got that status off, and fortunately i was not home when he came. The problem is he came at 6:45am and woke up my roommate and his girlfriend, and after they told him i was not home, he proceeded to wake up my apartment management and tell them the situation, and how much was owed ect. My roommate over heard the conversation and the repo man told them to not say anything about the conversation and that he told them. Is this a breach of peace at 6:45am or Privacy due to telling 3rd party people about it?

Rent Back Fast

We just moved and need to find a place soon, I want to apply at an apartment, but my credit is bad, however my husbands is good. My rental history is good however; his friend got them evicted from a place 5 yrs ago. What should we do in this case and how does the apart check it when they didn;t ask for previous addresses?

Sell and Rent Back

The house is in a park, not on private land. It’s a big one, 2400 sq.ft. I am current with the payments, but my job is making me move 500 miles away, I won’t be able to make payments on 2 homes. Is it better that they repossess it or foreclose? It’s for sale but the market doesn’t look good, homes have been for sale there for over 4-5 yrs. Renting is out of the question, I can’t afford the insurance they charge for a rental modular, and I don’t want it destroyed by the kind of tennants it would draw.

Quick Property Sale

I filed for bankruptcy about 3 years ago, and then hit a major financial crisis when I lost my job shortly thereafter. Afterward, I had an automobile repossession, delinquent medical bills, in addition to other minor debts. I have children and would like to purchase my own home in the next five years. Is this possible? How can I even begin to start getting my credit back on track?

Real Estate Professionals

Dallas is a big city and there are numerous apartments in Dallas available to rent, on different lease terms. Usually the longer lease term you sign, the better special you will get. These apartments are available in almost every location spread throughout the city, in a wide range of rental prices.

With so many Dallas rentals to choose from, you might find it difficult to decide what apartment will be the best one for you where you can enjoy a stress free living. However, while making a decision, you should consider several factors, like your budget, physical needs, personal preferences, like the community and neighborhood, desired amenities, whether you want a furnished/semi-furnished/unfurnished apartment, whether you want to keep pets, how will you commute to the other corners of the city, which type of transportation you use and its availability in that location etc.

The Dallas Texas apartments are available in a wide range of rental prices. Larger square footage or apartments with more bedrooms are obviously going to have higher rents. The location and the amenities available in the apartment are also factors which influence the rent. You need to first decide your budget and then start your search accordingly. Your budget should be realistic. It shouldn’t be too low or too high. It should be an amount which you can comfortably afford to pay each month, without compromising on the other essential needs.

The apartments in Dallas which are located in the burbs are usually lower rentals and the ones located close to the center of the city are higher rents. If you consider the traveling costs and the other benefits available, you will find that, although the prices of rented apartments in the central locations are high, it is more economic than staying in the outskirts and spending lots on traveling.

You can also choose to live in downtown or uptown Dallas apartments if you work in those areas and it is easy for you to walk or ride a bike wherever you need to go. By choosing to live in one of these apartments and dispensing with the traveling costs, you can save a good deal of money.

By choosing to live in a Dallas Texas apartment, you free yourself from the liabilities of getting repair and maintenance work done. Generally, in most of the rented apartments, the landlord or the corporate management company is responsible legally for maintenance of the apartment. Therefore, you don’t have to spend money on the plumber and any other maintenance issues.

People, who want to keep pets, don’t have to worry, as there are many apartments in Dallas which are pet friendly. However, there are certainly some dos and don’ts and certain limitations in every apartment. Therefore, clear things before signing the lease.

Besides considering the above mentioned factors, you can contact the help of an apartment finder in Dallas to help you locate the perfect Dallas apartment to rent.



Sell House Quick

So you have finally purchased that 19th century farm house that you have always pictured yourself living in the problem is how do you finance the restoration? It is easy to get mortgages for the value of the home even a little extra if you have a good credit rating but today a renovation can cost more than the original purchase price of the property.

The first option s to look at your available assets. You can get a home equity loan if there is any equity in your house. Use your credit cards for short term renovation or borrow money from your parents these ideas are only usable in a short term renovation once the renovations completed you should be able to refinance your home and pay of the relatives, high interest credit cards and roll your home equity loan into your mortgage.

You may be able to get a “line of credit” a line of credit is usually easy to get up to $30,000.00 with out much effort and with a minimal amount of paperwork these lines of credit are good for short term renovation that are under the $100,000.00 dollar mark. The interest rates tend to be on the high side but you can draw out the money as you need it and only pay interest on the cash that has been withdrawn and again once the renovation is completed you can refinance and pay of the line of credit and combine all your loans in the mortgage.

Depending on the scope of your renovation you may be eligible for store loans and credit card offers. Many home stores now have their own credit cards they offer deal such as interest free credit for one year you may be able negotiate a longer term. The important thing here is to pay off the loan/credit card prior to the free period expiring otherwise the interest will revert back to the initial purchase. Some stores will also offer you a interest free construction loan for your project the terms of these construction loans vary from store to store read the fine print carefully like the credit card deals these usually have a time limit. Again one the renovation is completed you can refinance and pay off the loan avoiding high interest dept.

Construction loans are generally reserved for larger projects this kind of loan is a short term loan the money can be taken as needed and interest is paid on the money that has been taken out. Almost everyone now offers construction loans this completion has brought the costs of these loans down. The nice thing about construction loans is that you can withdraw the money as you need it once the renovation is done you can refinance and have one closing and one mortgage. One thing you should keep in mind when shopping for a construction loan is the fees and finance charges as always keep an eye on the fine print for hidden charges.



Quick House Sale

While property prices and rental values in Mumbai skyrocket, studio apartments in the financial capital of India have surfaced up as one of the most preferred housing alternatives for expatriates, corporate executives and frequent travelers.

A studio apartment is the one, which is smaller in size usually around 300-350 Sq. Ft, and thus the cost of acquiring such property is comparatively lower. Typically, the apartment has one large room which is divided into sections such as a small kitchenette, living room and bedroom, bathroom and toilets.

Need and Advantage

“Besides, expatriates, young corporate executives are the one who have been creating demand for studio apartments in Mumbai Real Estate. Most of the times, these young chaps prefer to buy apartment by taking home loans rather than shelling out hefty rents that comes near the value of EMI (Equated Monthly Installment),” explains a Mumbai-based property broker.

This way, as a cost-effective alternative studio apartment culture in Mumbai is fast gaining ground, and the kind of employment opportunities Mumbai offer to young graduates, need for compact housing would keep on rising as more and more people would be settling in the city.

Eyeing the demand for such options many developers and hospitality majors have entered the space making the segment more competitive. In Mumbai residential property markets, studio apartments are available in many variants starting from those that are as luxurious as a five star hotel and obviously charge a premium to the budgeted option that are not as luxurious but still provide all the facilities.

Growth drivers

As more and more international firms are setting shops in India, the need for long term stay options have increased. Mumbai being the business capital of India is obviously one which sees the maximum number of business travelers that stay for longer duration as compared to routine tourists. At the same time, corporate executives with aspirations of good lifestyle and privacy also prefer studio apartments.

Moreover, as the travelers stay for a longer duration the apartment needs to be fully furnished hence a bare shell wont do. Considering the economics of booking a five star hotel room for longer duration, more and more developers are coming up with studio apartment centric projects.

Such apartments have mushroomed all over the city especially near the business centers as the main clientele for such an establishment include business travelers. However, it has been observed that apart from business travelers even tourists that come for longer duration prefer a studio apartment rather that a hotel room.



Repossession

While speaking to people at various events or network opportunities, every so often some one mentions about the increasing number of repossession, thanks to interest rates that have been creeping up slowly in the past year or so.

Recently some one mentioned, “do not why people let themselves into trouble”, he said,”I would just hand over the keys to the bank manager and save my credit history rather than going through repossession hell.”

Nice idea, only that this does not work in UK.

Many people I have spoken to often speak about the foreclosures and ‘how to buy these properties and also help people in trouble.’Unfortunately these people have been regarding far too many property books published for American audience. Foreclosure is a term used in the US. Law works differently in UK, and it refers to repossessions.

Same thing? Hardly!

Lets us talk about foreclosures versus repossessions first.

Myth 1: Foreclosures versus Repossessions

US housing lenders are allowed to apply to the court (and granted permission) to seize the house back, sell it and keep the whole proceeds. Normally court allows repossession but increasingly they are allowing foreclosures. This means that investors can buy the house from the company cheap and make a profit on by reselling it at full market price.

However in UK, companies are not allowed to seize the house. Courts allow them only to repossess the house to be sold at the fair market value, pay the owed amount (and expenses) from the proceeds and send the balance to the borrower.

The Building Societies Act 1997 directs companies to “take reasonable precautions to obtain the true market value of the mortgaged property.”

The true value of any property is often subjective - and depends on the opinion of a purchaser. So how can a mortgage company determine its true market value?

Auction is a route that many companies take.

However the mortgage company does not has to sell the property via auction to obtain the true market value. Courts generally accept this method as a determinant of fair value, but as long as a company can demonstrate, if questioned, that other methods were used, it is allowed.

Some companies sell the property via local estate agents without disclosing that he property is repossessed. By the way of like for like comparison, they can demonstrate that fair value was achieved.

Myth 2: Hand Over The Keys Myth

Many people believe that if they are struggling to keep up with paying the mortgage then handing over the keys to their bank manager will clear them of any further obligations of making payments - because they do not own the house, right?

Sadly this is far from the truth.

Mortgage company lends you the money (cash) and requires you to pay back the whole amount and interest in cash. If the company has to sell the house on your behalf then you are still liable for any interests incurred till all the dues are cleared.

Myth 3: Property repossession allows you to make a fresh start.

Only as long as all debts are cleared from the proceeds of your property!

If the proceeds from your property only pay back a part of the loan to your mortgage company then you are still liable to pay back the outstanding amount. These situations can happen if the property prices have crashed below the borrowing levels.

So if you are facing repossession threat then it is best to speak to some one competent about your situation. One advice is: do not ignore correspondence from your mortgage company. Second, get neutral advice as soon as you can. You do not always have to pay for the advice. Many free advice resources are listed on this link.

Remember,if property is sold via your lender (after repossession) then you not only become liable for further charges (e.g. bailiff etc), this also gets recorded against your credit score for future reference.

Many people prefer to sell the property to an investor who can buy the property fast. These investors can be located via doing a search on Internet, searching your local papers or speaking to those in the know.



Rent Back

You’ve looked up the information on thousands of apartments in catalogs and online. You’ve located the pictures, floor plans, maps, amenities, and details of the places you’re interested in. You’ve compiled the data for 10 communities to finally narrow the field and now comes…The phone call.

The dreaded phone call to find out about specific rental rates and to address all of those “call for specials” that you’ve gathered.

The key to success is in the phone call. The amateur apartment shopper begins the call cold, unprepared, fidgety, and nervous. “Do you have a one bedroom?” or “How much is your two-bedroom?” Apartment Home Living is here to help you be successful at finding the right apartment home by knowing what to ask.

Question 1: What size and when?

Begin the questioning any way you like, but your most important question is do they have the apartment you’re interested in available at your target move-in date.

It’s a common misconception that apartments are simply sitting empty, waiting on you to show up to lease them. This is frequently untrue. To work out for you, the community must have the apartment you want in the timeframe you need to move. If it isn’t available, unless you have some move-in date flexibility, you should go on to your next call.

Question 2: Do they take Fluffy?

If you have a pet, this question is as serious as a parent asking if this community will take their child. (By the way, all apartment communities will ALWAYS take actual children. Those little balls of energy are protected under the Fair Housing Act).

Unfortunately though, Fluffy isn’t protected under any laws and it’s completely up to the community if they’ll accept your dog, cat, sugar glider, or monkey. They set the rules regarding pets.

They also set the price to pay for the opportunity to keep your child-pet. Don’t choke if it’s over $300 per pet plus monthly pet rent. That can be a starting point for some properties. So be sure to check and see if you’ll be bringing Spot, then see if someone’s going to have to “spot” you some cash to pay the fees.

Question 3: What’s the #1 reason people love to live here?

This is the best and most straight forward way to find out what makes a community special. Is it the walking trail behind the property? The social atmosphere? The famous pork roast every July?

This question can be a key in setting one apartment community apart from another. The answer may be something that really peaks your interest or may unlock hidden potential in a place you wouldn’t be able to see from a picture or driving-by.

Question 4: How much?

Initially, it’s human nature to stop listening if we hear the price is remotely out of our budget. And yet, seeing an awesome apartment in person may actually sway us that it’s worth the extra cost.

Think about this: Have you bought a car that was more than you set out to spend? Have you paid more for that purse you just had to have (but didn’t know you had to have it until you saw it)? Gone on a vacation where you blew your budget?

Was it worth it? Nine times out of 10…Absolutely. So give cost an open mind before you say no to a place for breaking the bank. You might find it’s perfect in the end and well worth it.

Question 5: Do I qualify?

Asking the price question and overshooting your budget goals won’t matter if you don’t qualify for the apartment anyway.

What is the general qualifying criteria? Making about 3x the rent, having a clean criminal record (no felonies or crimes against persons), and no prior evictions.

What do you do if you don’t meet their criteria? You could keep looking for a place with less strict qualification restrictions or take the gamble of losing your application fee and/or deposit just to see if you qualify anyway.

Question 6: Do you have any specials?

Specials can change from day-to-day, so make sure to ask this question close to last. Remember to keep in mind that some of the best communities don’t have the best specials because they don’t need them. They’re special just for being so awesome.

Question 7: Can I set an appointment to come in?

Don’t you still need to visit to make the final judgement call? Yes you do.

At the end of all the other questions, if you’re still interested, ask to set an appointment to come in and take a tour. Seeing your possible new digs in person more than likely will be the best way to make a decision.

Now you have a little guide of the right questions to ask a leasing professional over the phone, so what are you waiting for? Hop on Apartment Home Living , find a some places in your area, and get on that phone!



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