If you truly want to explode your passive income potential, you need to invest in apartment complexes. I know it might seem overwhelming, but get your feet wet! You will be shocked at the unlimited potential these bring to your financial picture!
When I first started to invest in real estate, it took me about a year before I chose to invest in apartment complexes. I have NO regrets! They are amazing. While I still love and prefer single-family properties or residential multi-family options, there is nothing quite like bigger apartment complexes.
My husband, Jason, is reallllllllyyyy into apartments. He’s our resident guru on the topic. But, I want to share with you my first experience and why you need to invest in apartment complexes, too.
How to Invest in Apartment Complexes to Create Unlimited Income Potential!
About a year or so after I started to invest in real estate, I noticed a nearby series of apartments with a “For Rent” sign. There were two separate complexes right next to each other that had this sign, too.
I came to learn that a few years prior a local teacher had purchased these complexes. He had hoped to develop a source of retirement income. His current plan was not enough and wanted to try to figure out another way to bring in some income.
Long story short, this man was not the best landlord. The complexes were always filled with drug dealers and low lives and, after a few years, the teacher found himself in foreclosure on the properties.
Now, in case you don’t know, foreclosure is a really slow and drawn-out process. So, the houses got pretty rundown over a few years as the foreclosure went on. The bank that then owned the property eventually brought in a really good real estate broker to clean up and fix the apartments for resale.
This was about when I saw these apartments go up for sale…somewhere around the end of 2013 and the beginning of 2014.
Now, by the end of 2014, I had already bought 14 houses and I wanted something new. Jason and I had a bit of drama in our relationship (that’s a whole other story), but once we worked things out we came to a compromise to invest in apartment complexes together.
Right around that time an investor coach came through the area who was teaching about how to invest in apartment complexes. So, we signed up for the workshop and brought these deals in to discuss!
When we presented the deals, everyone immediately said, “Oh, you have got to do this! These are no-brainers!”
So, shortly thereafter we decided to invest in these two apartment complexes but also an additional one just up the road.
Now, in order to buy these complexes, I needed a down payment of 20% for each property. But, remember, I had been buying up houses all year! For each of those 14 houses I had purchased, I had made about $10,000. So, I had taken that money and used it to buy another property (actually worth $200,000) free and clear.
Well, in order to get the money I needed for the down payments I went to the bank and took out a home equity line of credit (HELOC) on my property. They were more than happy to loan me the $120,000 I needed. Once I got the properties all situated, the monthly rents from these apartments were all set to bring in enough to pay for their monthly payments and pay back the HELOC.
Now, here’s where it gets really fun! You see, once we bought these properties we set ourselves to use the monthly income to pay off each of the properties so that by the end of 2020 everything would be owned free and clear. Once everything has been paid off, I will be able to pull money out of each of these properties just like I did with the one earlier. I do not have to sell it or anything!
I can use the built-in equity, or value, of the property to get a loan and then use that money to go invest in apartment complexes that are even bigger.
Do you see it? These properties bring in monthly residual, passive income. Once I do not own anything on the property and am debt-free, I can still use a portion of its worth to get another down payment to invest in apartment complexes worth maybe a million! Tell me that is not just awesome!
THIS is how you do deals without having your money, credit, bank accounts, whatever, wrapped up in it. When you invest in apartment complexes, all the banks care about is the property. It no longer has to do with you and your personal financial situation. It is all about the cash flow of the property and if it will be able to pay for itself with a small profit.
Commercial real estate asks if the property qualifies, not if you do.
Invest in Apartment Complexes to Build Money Faster!
I hope by now you can see how incredible an opportunity there is for you to invest in apartment complexes. There is unlimited potential if you use the money wisely and plan things out for your financial success. This is why I teach all about these techniques with my ladies. FDDF and Apartment Blitz set the foundation for you to thrive in the real estate world!
Opportunity is all around. You have to be willing to get out there and learn how to do this if you truly want to change your financial world. Make sure you join our ladies in the FREE Facebook She Buys It group so you can see firsthand how lifechanging it really is.
Real estate is AMAZING and I would love to see every woman I know have their hands in owning some. Will you be next?