Apartment Investing – Stability Amongst Chaos
The quick-turn model is getting a little hard to work nowadays isn’t it? Short sales are getting harder to buy, pretty houses are getting harder to sell. It’s chaotic market, and still falling.
But there is one area of real estate that is doing quite … actually, very well. That is, apartment buildings.
Apartment buildings are filling up, their vacancy rates falling as people go from losing their homes to living in apartments again.
If you are looking for a stable place to invest, where predictability and cashflow still carry the day, look at buying apartment buildings.
If you are broke, credit challenged, but still wanting to buy property, apartments can be the perfect vehicle for you to get back in the game.
Apartment buildings are one of the more easily understood asset classes for lenders. You can acquire a credit partner, line up private money to cover the down payment and closing costs, and enlist a management company to provide the expertise a bank wants to see overseeing their mortgage.
You can sit in the middle and bring it all together.
Apartment lending dropped about 40% in 2009, but has stabilised in 2010 and is beginning to creep up again. Once again apartment buildings provide a great vehicle for investing, and will continue to for years to come.