Here’s the deal, these turnkey real estate investments have third-party management companies (some on site) that take care of the daily needs as you collect passive income. If you Google passive real estate investments, you’ll find that your number one choice is that multi-family apartment buildings are large unit complexes that can get commercial financing based on your finances. You can invest as little as 25% -35% down payment with lenders leveraging 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 owner is losing a quarter of potential income. In a 100-apartment high-rise building, a couple of vacancies are somewhat less important. That operational efficiency also makes lenders look more favorably on investments in larger apartment buildings.
If you are staying in class “a” cities like Chicago apartment buildings, then there will be a lot of people moving 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 businesses have open positions in Illinois cities such as 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 more exciting Illinois cities.
Has the stock market peaked? Who really knows why the markets move 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 if you want other investors to be looking at the volatile stock market 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 the big investments in apartment buildings. High-yield real estate investments can be made in single-family homes and attached homes that you can repair and exchange or rent for a profit. But it’s at the mercy of the market for buyers of single-family homes and owner-occupied homes.
Looking for the opportunity to be part of a joint investment? If you need more money, several million dollars, get together with your friends. Often times, you can 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 dental investors, or a group of lawyer investors, or a group of CPA investors, or a family group of investors. Spread out the wealth of opportunities by syndicating your investment and working with a broker in the apartment building real estate market you can find your group the right opportunity across the country. They have access to great portfolio opportunities that large apartment building complexes can purchase for investment.
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 you are on the preferred list, they will show you new opportunities weekly. 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 advance a deal 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 underwrite your loan. Looking for the perfect investment property somewhere in Chicago? Multi-family homes are typically 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 investment in the long run.
Multi-family homes for sale from HUD and Freddie Mac Lenders are also an opportunity for turnkey real estate investors. HUD has several properties per month up for auction or for sale that need TLC or maintenance updates. These cosmetic upgrades can dramatically increase the value of the apartment building complex. Working with an apartment building real estate broker can show you options so you can make sure you’re investing in the right neighborhoods, at the right price, and the right tenants.
Buying apartment buildings is a means of achieving financial freedom by leveraging your money and getting others to pay you passive income. Building wealth through real estate investing is easy and many investors make sure and consistent returns. When investing in apartments, you can expect benefits including a risk-adjusted return for investors and consistent cash flow over an extended period of time.
What about avoiding capital gains taxes? Thanks to IRC Section 1031, an investor to sell a property and reinvest the proceeds in a new property, defer all taxes on capital gains. 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 that is sold and the property that is acquired must be “like”. 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 are 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 for a portfolio of rental properties. Learn first-hand what it takes to be successful, learn about the syndication model or turnkey real estate investment. If you own a business, then you may be able to 1031 trade it for an investment in an apartment building for passive income after selling the building occupied by your business.