April 27, 2010
Real Estate Investing | Apartment Buildings – 3 Reason Why You Should Invest In This Niche
Is this the right time to buy apartment buildings? Well, the answer is yes! Most real estate experts agree that this year is the perfect time to start investing in commercial Real Estate, in specific, apartment buildings. In fact, the CEO of one of the major firms, Humphreys and Partners LP considers that 2010-2012 will be the best years ever for those who own apartment buildings. Yes, in the February issue of Multi Family Housing News, Mark Humphreys says that he believes that the outlook for this sector is going to get better and better beginning the last half of 2010.
Now, you may be wondering how the experts can say this with so much optimism. In short, the reason is that the supply is limited and the demand is increasing. There are three main reasons for this difference in the demand and supply of apartment buildings:
Limited Supply. The supply is limited because these days only around 60,000 units are being constructed annually. And if you are expecting this supply to pick up in the coming years, DON’T. This number is pretty small compared to the usually 350,000 units which were constructed averagely on an annual basis in previous years.
Increasing Demand. The demand is going to increase. Consider the 70 million graduates coming out of college in the next few years who will need apartments of their own.
No Easy Mortgage. Mortgage money is not going to be easily available. No mortgage money means that people are more likely to rent apartments than to buy a home.
All these three reasons will combine together to make these next 3 years the best years ever for anyone who owns an apartment building. So, this is the right time to put in your money in this lucrative Real Estate niche – because you are not going to get an opportunity like this for at least another 20 years!
There may be some of you who remember the Savings and Loan industry crash in the early 1980s. At that time the Federal Government formed the Resolution Trust Corporation or the RTC to liquidate the millions of dollars worth of properties. They were sold so cheaply during that time that many people like Robert Kiyosaki made a fortune by buying these properties at very cheap prices.
Here is another chance right here and right now. FDIC is selling millions of dollars worth properties at very cheap prices. Mortgage institutions are selling houses at less than the loan amount and real estate prices are any way at an all time low.
This means that you can buy some great properties at fantastic discounts and then wait for the apartment boom in the very near future. And you can also not forget about the ever increasing inflation that is making the prices of all hard assets hit their all time highest. So, is this the right time to invest your money in apartment buildings? Yes, in fact this is a once in a life-time opportunity to do so!
Edgar G Martinez is a full-time Real Estate Investor and the founder of DFWBargainProperties.com President & CEO at Apartment Building Millionaires Inc. Edgar buys and sells apartment complexes all over the State of Texas as well as Oklahoma, Georgia, Colorado and Washington.
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5 Comments on Real Estate Investing | Apartment Buildings – 3 Reason Why You Should Invest In This Niche »
April 11, 2011
CommonCents @ 9:39 pm:
You have up to 3 years (exactly) from the time you moved to sell your ex primary residence TAX FREE, assuming that you lived in it for 2 years before you moved away. Price it right and offer a higher commission to a selling agent. It works.
You don't have to manage property yourself. Get a professional manager. It's not a 1039 exchange, it's a 1031 Exchange. You don't avoid taxes forever, you just defer them.
What's wrong with paying taxes if you have a long term gain, the tax rates arent that high. Selling the property could become the biggest mistake of your life. People have made fortunes by holding property long term
June 18, 2011
frank valdez @ 10:09 pm:
SO is trace trajano a scam artist???
July 22, 2011
Finest Real Estate Info » Blog Archive » Real Estate Investing for Newbies « 4clicks @ 9:29 am:
[...] unknown wrote an interesting post today onReal Estate Investing for Newbies « 4clicksHere’s a quick excerptI found an article that deals with some of the more basic concepts for beginning real estate investors… check it out at the following link… Real Estate Investing for Newbies For more reading on the basics, click on the following… … [...]
October 16, 2011
Doctor Deth @ 3:10 am:
use the "Other" category
November 25, 2011
satarnag @ 9:09 am:
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.
Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.
You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.
Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.
I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!
E-mail me if you have any questions.
Regards