Real Estate Investment Service. Leverage Knowledge and Experince wo help you build wealth

HOW TO CREATE MASSIVE WEALTH

Chances are that if you're reading this paragraph, you want to build wealth. You want to learn the secret of how the wealthy keep getting wealthier. These elite groups of people make their fortunes by taking "controlled and calculated risks" and leveraging into assets that "work for them". The number one investment of choice still remains income-producing real estate. It's an asset that allows investors to "control their risks" because they can actively participate in the day-to-day decision-making. If you want to become wealthy, you must take "controlled" risks and aggressively focus your energies and resources relentlessly toward one goal - acquire high-yielding, income-producing apartment properties.

Why Buy Apartment Buildings?

The Best Hedge Against Inflation - Unlike stocks and bonds, apartment buildings react positively to inflationary pressures due to annual increases in rental rates. In economic downturns, investors can lower rents to maintain full occupancy. In economic upturns, investors can increase rents to maximize net cash flow.

Stability - People have to live somewhere. Occupancy levels of apartment properties over the long term have rarely dipped below 90% for any significant period of time, in contrast to property types such as office buildings where occupancy levels have dipped to 80% or less in most major markets.

Increased Demand - It is estimated that the American population will reach 370 million people by the year 2030. Apartments offer a basic necessity - shelter. Everyone needs a place to live and the demand will only increase!

Value Creation Opportunity - Many smaller communities have "unsophisticated" owners which can lead to under-capitalized and/or mismanaged communities, presenting significant investment opportunities to the savvy investor.

Income Tax Depreciation Laws - Increased depreciation over the first few years results in major tax benefits to investors. No other investment provides investors these key benefits: write-off depreciation, mortgage interest, and capital improvements and pay no taxes at year end.

Basic To Do's:

1. Research, Research, Research. Focus your energies on locating weak and deteriorating markets; areas that are currently depressed and/or underperforming due to tough economic times but will rebound in the very near future. These areas present financial savvy investors with the absolute best buying opportunities. This is called "Bottom Fishing" or "Buy Low & Sell High".

2. Hint: Look for high unemployment rates, high vacancy rates, and compressed rental rates.

3. Once you have identified a market with these characteristics, establish your primary goal - identify and analyze as many 4 unit apartment properties as possible. Compare and contrast the risks and rewards on a transaction-by-transaction basis.

4. Be sure to use specialized Real Estate Investment Software designed specially for analyzing apartment properties. Perform rigorous financial analysis on each property.

5. Analyze the operating statements to better understand each properties historical performance. You must understand the "stability of the cash flow" stream you will be buying. Remember, the super successful real estate investors make a large percentage of their profits directly upfront by purchasing at the "Right Price".

6. Don't be fooled by "Inflated Revenue". Don't be fooled by "Underestimated Expenses".

7. Never "Over Pay" for a property.

8. Invest in and rely on a Specialized Financial Model to perform the analysis for you. Specialized real estate investment software is one of the best investments you can ever make if you're serious about buying apartments.

9. Analyze the competitive market environment in order to make "Accurate Assumptions" which you will incorporate into your financial analysis. You must understand exactly what the "Market Is". Assumptions play a very important part of your analysis. It's important that you have a thorough understanding of current and future market conditions when making assumptions. The results can greatly increase and/or decrease a property's operating performance from year to year which will impact investment value and ultimately investment returns.

10. If the property passes your financial analysis and comprehensive due diligence process then Buy It!