Here's the deal, these turnkey real estate investments have third-party (some on site) management companies that take care of everyday needs as you collect passive income. If you Google passive real estate investments, you will see your number one choice is multifamily apartment buildings are large unit complexes that can get commercial financing based on their financials. You can invest as little as 25% -35% down payment with lenders leverage on the balance. This can make 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 landlord is missing out on a quarter of potential income. In a 100-apartment high-rise building, a couple of vacancies are less of a big thing. Those operating efficiency also make lenders look more favorably on larger apartments building investments.
If you stay in "a" class cities like Chicago apartment buildings then you have many 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 companies have employment vacancies in Illinois cities like Chicago, Aurora, Joliet, OakBrook, Schaumburg, Libertyville, Elgin and as far out 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 at risk. Take a little more control of your money and do want some other investors are doing about the volatile stock market in search of safety, they find hard assets like real estate as an alternative investment. But you don't want to be knocking on doors to evict tenants or fixing toilets as a landlord, there is another choice and it is large apartment building investments. High return real estate investments can be in single family homes and attached homes that you could fix and flip or rent for a profit. But you are at the mercy of the market for single family home buyers and owner occupied homes.
Looking for an opportunity to be a part of a pooled investment? If you need more money, several millions of dollars, then get together with your friends. Often you can syndicate an apartment building or multifamily investment as a turnkey opportunity with other professionals. Who do you know? Maybe other business owners like yourself, or a group of doctor investors, or a group of dentist investors, or a group of attorney investors or a group of CPA investors or a family group of investors. Spread the wealth of opportunity by syndicating your investment and working with a broker in the apartment building real estate market can find your group the right opportunity nationwide. They have access to large portfolio opportunities that you can buy large apartment building complexes for investment.
But there's a catch, you actually have to take the first step into building real estate wealth by contact a broker in apartment building real estate today and become a qualified investor. Once you are on the preferred list, they will show you new opportunities on a weekly basis. This will give you and your investment group first chance at these real estate investment opportunities.
How can you actually use this to build your real estate portfolio? By taking one investment at a time. Read each opportunity but be prepared to move on a deal and talk with your commercial lenders that are ready to loan on apartment buildings and other rental properties. Have your investment portfolio and tax returns ready to go for underwriting your loan. Looking for the perfect investment property somewhere in Chicago? Multi-family homes are usually quite plentiful on the Chicago real estate market and depending on what you find, they can often make for a lucrative and savvy investment over the long haul.
HUD multifamily housing for sale and Freddie Mac lenders are also an opportunity for turnkey real estate investors. HUD has several properties a month on auction or for sale that are in need of TLC or maintenance updates. These cosmetic updates 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 point and the right tenants.
Buying apartment buildings is a means of achieving financial freedom by leveraging your money and have others pay you passive income. Wealth creation through real estate investing is easy and that many investors make safe and consistent profits. By investing in apartments you can look forward to advantages including risk-adjusted return for investors and a steady cash flow over an extended period of time.
What about avoiding capital gains taxes? Thanks to IRC Section 1031 allows an investor to sell a property and reinvest the proceeds in a new property, defer all capital gain taxes. A powerful tax-deferment strategy used by some of the most financially successful real estate investors. How do you qualify for a 1031 exchange? The property being sold and the property being acquired must be "like-kind." Meaning that both of the properties must be "the same nature or character, even if they differ in grade or quality." But you can't exchange farming equipment for an apartment building, because they're not the same asset. In real estate you can exchange almost any type of property, as long as it's not personal property.
Start today and contact a broker to own a portfolio of rental property. Learn first hand what it takes to succeed, learn about the syndication model or turnkey real estate investing. If you are a business owner, then maybe you can 1031 exchange into an apartment building investment for passive income after you sell your business occupied building.