Real Estate Investing financing – Eight Benefits of Purchasing a Multifamily Real Estate

During these economically difficult times, people are in search of genuine investment opportunities. They want to make investments in stable and low risk schemes which provides them with high returns. These types of opportunities are really hard to come by these days.

We discuss below 8 points as to why you must own a multifamily real estate:

1. You can outsource the management of property to some specialists. This will afford you quality time.

2. You can purchase such properties without investing any of your own money. It is very easy to get loans for apartments than for one family houses. You can easily cover any cash needs by raising some private money.

3. You may be able to secure a far better leverage of your energy and time. You can well maintain a 12 unit apartment than 12 individual houses.

4. Valuation of income properties is done on the basis of income they generate. You can always raise its value by increasing the rent and at the same time lower your expenses incurred in maintaining them. You will begin to appreciate the use of your money and time.

5. You may face less competition as lesser number of people are indulging in multifamily deals. Most people would prefer singly family home deals as they don’t have the requisite knowledge which is needed in such deals nor do they have the mindset for the same.

6. There is a less of risk. Here you have large number of tenants and hence have several revenue streams. Apartments are meant for business. In case of a property if you lose a tenant, you start paying all the expenses from your own pocket.

7. Here in case of multifamily homes, it is quite easy to raise the money. Like say, you borrow one million dollars, this now becomes a non-recourse finance which means the asset (apartment) is the only security to the lender for the loan and you personally are not liable.

8. There is a steep fall in sub prime lenders of the mortgage. There are whole lots of people out there who can not fulfill the terms and conditions for houses for which they raised loans and thus there is a rise in the foreclosures. There is definitely a good demand for the rentals.

As we discussed above, you have a good returns assured for your investment if you go ahead and buy multifamily real estates. If you are on look out for a suitable investment vehicle for you, trust me, multifamily apartments are great way to proceed with.