Most people want to achieve financial independence. But very few manage to become financially independent. Investing in apartment buildings is one of the most reliable and fastest ways to reach financial independence. Most people know that you can make big money in commercial real estate. But they think that it is only for people with lots of money. In reality, you do not need much money to become a commercial real estate investor.
One of the main reasons why most people fail to achieve financial independence is because they think that it is impossible so they do not even try. But with the right vehicle the chances of becoming financially independent are good. Investing in apartment buildings is one of the best vehicles to achieve financial independence.
The good news is that it is fairly easy to buy apartment buildings. It is possible to get started with little money and the necessary knowledge is easy to acquire. But you need a lot of courage to buy your first apartment building. Even if it is possible to get started with very little money, having a couple of thousand dollars available will make things easier. You want to pay for an inspection of the building. The cost of such a survey depends on the property, generally smaller surveys cost $1000-2000. You need to get an appraisal in order to get a loan. The cost of the appraisal can sometimes be rolled into the loan. The price of an appraisal depends on the property as well, starting from around $1000.
In most cases, you also need to come up with earnest money. How much earnest money is needed is negotiable. If you are dealing with a motivated seller, the money you need to provide can be small. But the real advantage dealing with a motivated seller is the possibility of getting seller financing. The banks will only lend you 70-75% of the appraised value. A motivated seller will lend you the remaining money. Closing costs in commercial deals are often high but most of them can be rolled into the loan and a motivated seller may lend you the money you need to close the deal.
It is difficult to buy your first apartment building. But given the handsome cash flow a successful deal will give you, it is well worth trying to get started. Even smaller deals should provide you with a four figure positive cash flow, per month. Already your first deal will get you well on your way of achieving financial independence.