By now you've read and heard about a few of the many benefits multifamily properties have over single family homes, retail structures, office buildings and the like. Perhaps one of the biggest advantages of any commercial property is PASSIVE INCOME.
Passive income is generated by an individual, usually derived from rental property, limited partnership or some other enterprise, in which he or she is not actively involved. It does NOT include income from wages or active business participation. That means you're not there physically doing the work yourself. Passive income is what we all want. It's usually the monthly payments we receive with little or no effort from the assets we accumulate. A property that produces passive income continues to do so until the asset is sold. It then turns into portfolio income. If a person has more than enough passive income to cover his or her expenses, that person is on the road to financial freedom.
We all ultimately want passive income so we can sit on the beach, take month long vacations, travel the world, or whatever it is that you want to do with your life. That's what apartment buildings can do for you. Apartments give you freedom. They produce passive income so you can spend your time doing other things you enjoy--like buying more apartment buildings!
Many investors think they have to start with single family homes and then "work their way up" to apartment buildings. That's just not the case. You don't need to do that unless you believe you do. It's a mindset. People are often shocked when I tell them I've never invested in a single family home. Not because I don't believe you can make money doing it, because I know you can. But I know I can make more on an apartment building. Sure, I bought my own home, but I've never bought a house as an investment. The first investment property I ever bought was a 16 unit apartment building--with no money! The nice thing about multifamily properties is that the income generated pays for all the expenses. I don't do anything. The manager is paid from the income. The expenses are paid from the income. The mortgage is paid from the income. When it's all said and done, I get what's left while the property continues to increase in value.
Passive income is what most investors think about when they get involved in real estate. Sadly, many would-be multi-millionaires exit the real estate market because their investment bought them a part-time or full-time job. It doesn't have to work that way for you. Don't overlook the power of apartment investing. It could change your life.
Wish you all the success,
Steve Steadele
About Steve:
Steve Steadele, author of the book Multifamily Millionaire, is a successful Real Estate Investor, Broker, Entrepreneur and self-made millionaire. He is a featured speaker at Real Estate Investment Associations across the country where he shares his wealth of knowledge, experience and enthusiasm for the real estate industry. Today Steve specializes in the acquisition and disposition of investment real estate throughout the United States. To learn more about his products and services, visit his Web site at www.SteveSteadele.com.
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