Here’s the deal, these turnkey real estate investments have third-party management companies (some on-site) that take care of the day-to-day needs as you earn passive income. If you google passive real estate investments, you’ll see that your number one choice is multi-family apartment buildings are large complexes of units that can get commercial financing based on your finances. You can invest as little as 25%-35% of the down payment with the lenders leverage on the balance. This can generate a significant return on your investment.
The best part. There are economies of scale in operating larger apartment complexes. If two units are vacant in an 8-unit building, the landlord is losing a quarter of potential revenue. In a high-rise building with 100 apartments, a couple of vacancies are less important. That operational efficiency also makes lenders view investments in larger apartment buildings more favorably.
If you stay in “a” class cities like Chicago apartment buildings, then you will have a lot of people coming in and out of the city of Chicago and rents can be adjusted quickly. There is also a demand for rental units in Illinois as many companies have job openings in Illinois cities like Chicago, Aurora, Joliet, OakBrook, Schaumburg, Libertyville, Elgin and as far away as Algonquin, Minooka, Morris, Mokena , Round Lake, Grayslake , Waukegan, Homer Glen, Wheaton, Downers Grove, Oswego, Plainfield and many other exciting Illinois cities.
Has the stock market peaked? Who really knows why the markets go up or down, but I do know that it is your hard-earned money that is at risk. Take a little more control of your money and like some other investors are doing in the volatile stock market looking for safety, they find hard assets like real estate as an alternative investment. But you don’t want to knock on doors to evict tenants or fix bathrooms as a landlord, there is another option and that is big investments in apartment buildings. High-yielding real estate investments can be in single-family homes and townhomes that you could repair and remodel or rent for a profit. But you are at the mercy of the buyer’s market for single-family homes and owner-occupied homes.
Are you looking for an opportunity to be part of a joint investment? If you need more money, several million dollars, get together with your friends. You can often syndicate an apartment building or multi-family investment as a turnkey opportunity with other professionals. Who do you know? Maybe other business owners like you, or a group of medical investors, or a group of dentist investors, or a group of lawyer investors, or a group of CPA investors, or a group of family investors. Spread the wealth of opportunity by syndicating your investment and working with a broker in the apartment building real estate market can match your group with the right opportunity across the country. They have access to great portfolio opportunities that can buy large complexes of apartment buildings to invest in.
But there’s a catch, you actually need to take the first step to building real estate wealth by contacting an apartment building real estate broker today and becoming a qualified investor. Once he is on the preferred list, they will show him new opportunities on a weekly basis. This will give you and your investment group the first opportunity to take advantage of these real estate investment opportunities.
How can you use this to build your real estate portfolio? Taking one investment at a time. Read every opportunity, but be prepared to compromise and talk to your commercial lenders who are ready to lend on apartment buildings and other rental properties. Have your investment portfolio and tax returns ready to support your loan. Looking for the perfect investment property somewhere in Chicago? Multi-family homes are usually quite plentiful in the Chicago real estate market, and depending on what you find, they can often turn out to be a lucrative and smart long-term investment.
Multifamily homes for sale from HUD and Freddie Mac lenders are also an opportunity for turnkey real estate investors. HUD has several properties up for auction or for sale each month that need TLC or maintenance updates. These cosmetic updates can dramatically increase the value of the apartment building complex. Working with an apartment building realtor can show you options so you can make sure you’re investing in the right neighborhoods, at the right price, and with the right tenants.
Buying apartment buildings is a means to achieve financial freedom by leveraging your money and having others pay you passive income. Building wealth through real estate investing is easy, and many investors make sure and steady profits. By investing in apartments, you can expect benefits including risk-adjusted returns for investors and consistent cash flow over an extended period of time.
What about avoiding capital gains taxes? Thanks to the IRC, Section 1031 allows an investor to sell a property and reinvest the proceeds in a new property, deferring all capital gains taxes. A powerful tax deferral strategy used by some of the most financially successful real estate investors. How do you qualify for a 1031 exchange? The property being sold and the property being purchased must be “of the same kind.” Which means that both properties must be “of the same nature or character, even if they differ in degree or quality.” But you can’t trade farm equipment for an apartment building, because they’re not the same asset. In real estate, almost any type of property can be exchanged, as long as it is not personal property.
Get started today and contact a broker to own a portfolio of rental properties. Learn firsthand what it takes to be successful, learn about the syndication model or turnkey real estate investment. If you are a business owner, then you may be able to trade 1031 for an investment in an apartment building for passive income after selling your occupied commercial building.