How To Buy An Apartment Building

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.

How To Buy An Apartment Building And Make A Whopping 110% In 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