THE FOURTH INSTALLMENT OF A LESSON ON APARTMENT BUILDINGS...

A way to Survive!!!

Why Apartment Buildings should be in your financial plan!!!

Now you must be asking yourself, why is he telling me all this? We are headed for a recession. Nine out of ten people in the know will tell you that. When interest rates rise and people cannot afford to buy houses, jobs are lost. When interest rates rise people cannot afford to buy cars, jobs are lost. So, investing in apartment buildings is a smart idea. Also, as rents go up and land values go up the value of your investment goes up and you can always pull out tax-free cash by refinancing the property to use to purchase other real estate or personal items.

I’ve seen families get together and invest their money this way. I’ve seen young men, in their late thirties, amass a lot of equity and money investing this way. It is a great hedge against inflation and it is one of the best strategies in a recession. 

Now, how do you get started? When I started out in Real Estate I bought and sold single-family residences for my clients. Then I was presented with the opportunity to sell a piece of land in Sherman Oaks. I sold a 20,000 square foot piece of property that was valued at $2 million for $4 million and I sold it to a developer. We are going to put a forty plus unit apartment building on the property and sell it for over $30 million.

Having been an accountant for over fifty years I have associated myself with some wonderful professionals. I work with business attorneys, estate and trust attorneys, loan officers, building designers, building developers, financial planners, etc. We would arrive at a budget based on your particular financial situation, set up the correct company structure for your project to protect your assets as well as take advantage of all of the applicable tax laws, plan the development, choose the right developer, get financing, build the building and either sell it or hold it. We would hire a management company to rent out the units and manage the building.

(TO BE CONTINUED)