Something you hear all the time is that real estate is too expensive.
It appears that investment real estate is selling at seemingly ridiculous valuations.
What if I told you that the more expensive investment real estate is, the better the time to get into the market!
In this blog post, I will show you, step-by-step, how the REITs buy and sell buildings, even in this overinflated market, and still make money.
In fact, in this blog post, I will show you how it’s possible to make an 80% to 100% return on your investment dollar in less than three-years.
Last week, in the blog post Entrepreneur Semi-Retirement, 18-Month Check-In, I mentioned that I was currently investigating purchasing another apartment building. In this blog post, I am going to run through the numbers and opportunity.
My mandate is to purchase a building that fits my investment criteria, which is normally a lifetime-buy and hold strategy, but I have adjusted my mandate with this particular building to a three- to four-year flip. I am expecting an 80% return on my initial investment dollar inside three years, and below, you will find information on the building and my investment analysis.
For obvious reasons, I am not going to publish the building’s location and address. For one, I signed an NDA, and more importantly, I’m not looking for additional competition, but, I will show you the steps on how to buy an apartment building, and make an amazing return in a short period of time.
The building has 32 apartments with a listed asking price of $5,650,000 and a stated CAP rate of 3.6%. It’s close to downtown in a very stable rental market with a current vacancy rate of close to 1%. Normally, I wouldn’t be interested in a building with such a low CAP rate, as I believe I can find better returns with my investment dollar, but I am specifically interested in this building because the current rents are WELL below market. we buy houses Schaumburg