Multi-Family Real Estates Are the Way of the Future For Real Estate Investors

September 6th, 2020 by admin Leave a reply »

Old adages are always true because they have come about as the result of direct experience and of them all perhaps none is truer than “you can’t put all your eggs in one basket”.

Take real estate for instance. This is an area where you can make a fortune or lose your shirt. It depends how lucky you get, how you handle it and whether the market is running with you or against you. All of these factors spell ‘RISK’ with capital letters and risk is just the kind of four letter word real estate investors really hate to hear.

So what do you do? Well, if you are in the single-family property you do everything you can to make sure you control the things you can control and hope you made the right decision in the things you cannot control. If, however, you are still thinking of getting into real estate and are right now weighing up whether you should go for a single-family property or a multi-family set up I can give you the direction you should be thinking towards in just three words: “risk aversion strategy”.

In the risky world of real estate a single-family property is just too exposed in terms of how it operates and how vulnerable it is to the vagaries of the market. A multi-family dwelling, on the other hand simply spreads the risk in a way that makes the entire venture a lot more acceptable.

It is this, more than anything else, that makes multi-family dwellings seem so attractive that I am convinced they are the way of investing for real estate investors of the future. Whenever I come out with something like this I have to also list all the obstacles that prevent other people from thinking the same.

The list is not long but it looks, at first sight, formidable. For instance, investors worry about having to deal with a dozen irate tenants at once, all ringing up late on a Friday night to complain about the plumbing backing up or the heating having broken down. In fact, the main objections, seem to be that most people think of a multi-family dwelling scenario as all the problems of a single-family one multiplied by the number of residents.

Switch mode of thinking however, think about spreading the risk and you realise that what you are actually get are approximately all the problems of a single-family dwelling spread over the number of residents with the added attraction that you do not ever have to be the one dealing directly with them.

Now, that is beginning to make a lot more sense and it is just the kind of thing I talk about when I say that multi-family dwellings are the way of the future for real estate investors.

David Lindahl, also known as the “Apartment King” has been successfully investing in single-family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights.

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