People will spend their whole lives working for someone else and be ok with the fact that they have a career and that they are making enough money to get by. However, as far as I know, we only live once, and life is too short to spend it working towards someone else’s goals and not your own. Think about what you would do if you could quit your job and not have to worry about money. Would you start a new hobby, would you take that trip that you have always wanted to? The list keeps going, but you get my point. Since I was you, I have watched as countless people worked towards getting free of their nine to five. The only way that I have seen be truly successful has been real estate. That is not to say that there is no other way, but from my own experience, real estate has been the most effective. Growing up, I watch as my family did what’s called flipping houses. This can create a substantial profit if done right. Unlike the way that I want to talk about flipping homes take a lot of time and effort. Here is a link to an excellent introduction to flipping homes https://www.lendinghome.com/blog/how-to-flip-a-house-in-8-steps/. The type of real estate investing that I really want to talk about is investing in large complexes that comprise of roughly 16 or more apartments. There are quite a few reasons to do this but the main one is that when you purchase a large enough deal you can afford to get someone else to manage the deal for you. It is one way of avoiding the so-called three T’s of being a landlord; tenants, termites, and toilets.
The best way to illustrate this is to examine a potential investment. There is no one better at explaining the upside to investing in large real estate is Grant Cardone. He has been investing in these deals for 20 plus years and has over 4,000 apartments. He said in an interview, “I can go online today and find a 49-unit property priced at $35,000 per unit with an 8% cap (the return on investment based on the income a property is projected to create) for $1,750,000. If you pay cash for this deal at $1,750,000, you would make $140,000 free cash flow per year after expenses. With $450,000 down and financing $1,300,000, the debt payment would be $78,000 per year. This would make you $62,000 cash flow per year.” Here is that link to the interview if you would like to continue reading https://www.businessinsider.com/an-investor-who-owns-4000-apartments-explains-why-multi-family-real-estate-is-the-best-investment-hes-made-2016-7
With a property like that, the majority of people would be able to quit their job and do whatever they wanted. There are many more steps in the process of getting started. My goal with this post was to get people thinking about the possibilities of thinking larger as well as to invite you to do your research and decide for yourself what you think about investing in larger apartment complexes. So please do so and leave a comment with what you think.
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