How much money can you really make?
Let’s be honest, if you are asking this question, your real estate activities are squarely placed within the realm
of single family homes. To make money in real estate, houses are attractive in the beginning because they are familiar; everyone
has either rented a house or bought a house so you know the numbers involved.
From there it’s not a great leap to start working with those numbers in the business of quick turning houses. Buying
a house for $80,000, spending $20,000 on repairs, and selling it for full retail value of $150,000; pocketing a net profit
of $35,000 (after expenses and costs of selling).
This is good money, for sure … “life changing” money. But after a few years it starts to be a lot of
work for what you get out of it, and you start thinking how you can make more with the time and effort you put into your business.
The answer is, of course, apartments. You already know how to manage everyone to buy and flip a single family property,
why not simply turn your and your team’s time, effort and attention to a multi-family property and move your business
activities up the food chain a notch?
No doubt you know apartment buildings are higher priced properties than single family. Well, when you flip properties with
higher values, you make bigger profits.
Sorry if this is stating the obvious, but it is this very fact of bigger numbers that keeps most people out of the apartment
business; both apartment investing, holding for the long term, and flipping apartment buildings for the quick five or six
figure profit checks.
The bigger numbers are too unfamiliar, and too s-c-a-r-y!
I want to let you in on a little known secret that is “robbing” you of the chance to have a lot of money coming
in each month, and yes, having a multi-million dollar net worth.
Flipping (i.e. wholesaling) a 200 unit apartment building, a deal that would net you around $150,000, depending on what
market you buy in, involves the same time, effort, and concentration that wholesaling a $150,000 house for about $10,000 profit,
Maybe you believe me, but discussing 200 units after talking about a single family deal is going too big too fast.