How to Become a Millionaire by Flipping Apartments

Over the last several years, a large amount of people, mostly new investors, bought apartments, big and small. These newbie investors assisted in keeping the economy stand strong by their buying and selling. Brokerages were thriving, lenders were exploding in development, and long-time owners were collecting loads of money by selling to these new investors at all-time high amounts. I individually partook in both sides. Here lays the problem that’s now coming into play – here’s how to make millions in apartment investing if you have the courage. Many of the same apartments that these new investors purchased are deteriorating and are not performing the way they were planned to. The proof is astonishing. Go onto Loopnet and see for yourself, how many apartments are “distress sales”. Not only are your creditors foreclosing on thousands of homes a month, they are also foreclosing on apartments, big and small. It’s a growing problem! Attaining success in real estate requires you to “see a need and fill that need”. That’s how companies are started, how new skills are started, and how “new real estate investing” openings are shaped.

7 Hazardous Signs of a Failing Apartment Investment:

Sign #1:
Mortgage, tax, and insurance expenses are larger than 50% of your total earnings

Sign #2:
Vacant units are staying vacant for 90 days or more

Sign #3:
Appliances and other parts are being taken from empty units to be used for typical maintenance

Sign #4:
The property’s curb appeal is unsatisfactory.

Sign #5:
The Property bills are not getting paid on time

Sign #6:
Occupants departure (turnover) and not renewing their leases is growing

Sign #7:
Property’s tenancy is worse than the economic average for more than 90 days

If you notice these signs on the next venture you’re looking into, get enthusiastic because an amazing deal could be in the making. To sum it up, if the owner does nothing to fix these issues they could be facing mortgage default. Here is where you could come to be part of their resolution. In a previous blog, I wrote about a low-money or no-money down buying method using a Master Lease Option. This is a wonderful way to tackle a property that’s about to nose dive.

Example of How This Works:

• You discover a distraught apartment building based off the above signs. 2. You buy it with a master lease (read my earlier article on how this works)and repair the building over time. In the time being, the cash flow and income made is yours to keep. 3. After the building’s problems have been repaired and it has become stable, you can either sell it for a giant sum of money or 1031-exchange all of the profits into a bigger building tax-free.

Three Reasons Apartment Investments Fail

1.An unsuccessful and ineffective property manager is in care of the property
2. A bad deal was made
3. The owner did not watch over their investment correctly.

In Conclusion:

Your answer to flipping apartments effectively is hiring great and knowledgeable property management, executing and closing on good deals (doing thorough due diligence), and holding those running the apartment on a daily basis liable for what they assure to contribute.

As I stated before, if you have the aspiration and courage to take on rehabbing and flipping apartments and decide to go for it, you have a new occupation for life. There will always be deteriorating and non-performing apartments all over the place in the US. Let’s make the leap and make millions together shall we? Who’s game?