Why Down Economic Times Create Multi-Family Investment Opportunities

March 29, 2009 · Posted in Creative Real estate Financing 

There is a common rationale used in the world of real estate that human beings need four fundamental things to survive: air, food, water, and shelter. This rationale is used simply to exemplify why real estate has been and will continue to be a valuable commodity and I tend to agree with it. The need for real estate is pretty obvious but the choice to invest in it and what types to focus on may not be quite as clear.

There has been a tremendous amount of recent focus on the housing crunch and the impact it has had on our economy as a whole. As a dedicated investor in multi-family real estate, I can tell you that the housing crunch has created a mass migration of consumers. Where are they migrating from? The homes that they purchased a few years ago, can no longer afford, and have since had to sell or unfortunately lose via foreclosure.

When consumers sell or otherwise have to leave a home, they have a number of options for where to go next. The one common element is that they generally all need to go somewhere because, after all, people still need shelter, the proverbial ‘roof over their heads’. This is where multi-family real estate gains tremendous value.

The options available to consumers who need a place to live include:

· A new single family home/condo that they purchase
· A new single family home that they rent
· A multi-family apartment unit that they rent

Given the current housing crunch and that many displaced home owners are now credit challenged, you should be able to see that being an owner of multi-family real estate makes you a source of housing, at a time when many people desperately need it.

I don’t want to overly make light of the current problems many consumers are having with real estate, as I know the current housing market has dramatically impacted many Americans. What I do want to emphasize is that multi-family apartment owners are now able to provide a valuable service to consumers who need a place to live, in addition to being able to pursue a solid and proven medium for investment.

The bottom line here is that, the sooner you see the present economy as a source of opportunity instead of a cause for panic, the better your portfolio will become and the sooner it will happen. Multi-family real estate represents one of the most logical and lucrative investments to consider and, especially in the current economy, it couldn’t be a better time to get started.

David Lindahl, also known as the “Apartment King” has been successfully investing in single family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine

Tags: , , , , , , ,

Comments

Comments are closed.