People all over the world are investing in commercial real estate and becoming successful at it. Steven Taylor Landlord alone has invested more than $500 million and made a name for himself in Los Angeles. If you’re considering real estate investment, you may be wondering which route to go. Businesses tend to come and go, but people always need a place to live. Of course, there are several other reasons to consider investing in multi-family properties.
It Is Easier to Finance
It’s no secret that purchasing multi-family property is often more expensive than other types of commercial property. What you may not know is that multi-family properties like apartment buildings are also much easier to finance. It is even easier to finance than a single-family home in many cases, and this is because an apartment building is almost guaranteed to create cash flow. When cash flow is guaranteed, the lender can be sure it will receive its money back.
Property Management Creates More Skills
Sometimes, people decide to purchase apartment buildings because they genuinely enjoy managing properties. If you enjoy getting to know your tenants and ensuring they are happy with your buildings, you will enjoy property management. This also creates skills such as communication abilities, money management, and even landscaping if you prefer to take care of your own lawns. Of course, there is no rule stating you need to manage your own properties. You can always hire a management company to do it for you, leaving you to handle nothing but the investment portion of the job.
You’ll Grow Your Portfolio Faster
When you purchase multi-family property, you can grow your portfolio more quickly. One property with 20 units is a faster portfolio builder than three properties with only one or two storefronts each. It’s also easier to work with only one seller than with multiple ones.
Naturally, if you’re a beginner investor, it’s important to do your research first. Consider your town’s market, whether you’d be willing to purchase in different areas, and whether you can truly handle the financial responsibility.