Apartment Complexes

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Technically speaking anything over five units is considered a commercial property and the same rules apply to it as would the purchase of a large office building or warehouse. Bearing that in mind, since the same amount of work is going to be involved it makes more sense to go after properties that are at least a little larger. In every city and even small town it seems like there are two or three large apartment complexes down every street, what most people never stop to realize is that every one of those apartment complexes is owned by some Real Estate investor, sometimes through a partnership, sometimes multiple complexes may be owned by a single investor. Investors love them for good reason too, not only are large apartment complexes fairly abundant, they also generate huge amounts of cash every month, which makes them fairly easy to finance. With large apartment complexes you can dramatically increase your gains as well. Remember the tired, ragged looking couple who bought and flipped that single family home for a profit of around $10,000? Imagine if you took that $10,000 and then multiplied it by thirty units, or even three hundred units! You might even make enough to pay someone else to do all the hard work, maybe someone like a professional contractor.

As much money as there is to be made investing in larger apartment complexes, they have another even bigger advantage over the smaller deals. The fact that they are still technically considered commercial properties, at least as far as the banks and government are concerned, means the process for buying a large Apartment complex is almost identical to the process for buying that big office building or industrial warehouse. There are many people who make a very comfortable living off of small rental properties or flipping houses, and plenty of investors with a collection of new luxury cars paid for by their large apartment complexes, but for creating real wealth and stability nothing matches true commercial property. Most investors shy away from these deals because they are very different than the straightforward sort of property they are used to dealing with, and mistakes in Real Estate can be costly. Once you have a few large complexes under your belt though, you will not only have experience going through the basic process of buying commercial property, you will also have a stable, profitable asset base to protect you if anything does go wrong.