Are you searching for the best way to build passive income while creating generational wealth? If so, multifamily investing is the best investment to make.
The reason why you want to be invested in multifamily properties is simple, our country has developed into a nation of renters and people always need a place to live.
Multifamily properties are often more in demand and single-family properties because the average apartment complex, or duplex, offers amenities, a sense of community, and is typically closer to jobs and things to do in the local area.
When you own a multifamily property, you’re always going to own a stable asset that’s in demand and that’s something that will give you peace of mind, especially during periods of economic uncertainty or instability in the United States.
Now Is The Right Time To Build Passive Income And Generational Wealth
Creating passive income streams, and generational income, should be the priority of every investor because, nobody is guaranteed another day or year, and if you have a family your goal should be to establish passive income streams for them that will be around long after you’re gone.
If you’ve been waiting for the right time to invest in multifamily properties, it’s officially arrived because we have more people in the United States than ever before who are renting instead of buying properties, and the demand for rental properties like duplexes, triplexes, and apartment buildings is increasing.
Multi-family properties have been my preferred method for building passive income streams for years because, with an apartment building, I have multiple streams of passive income coming from one location.
Contrast this to the investor who owns multiple single-family homes. When one of those homes is vacant for a month or longer, the investor has to cover their mortgage and other expenses for that property, compared to a multi-family property which always has occupied units producing income, even if there is one vacant unit.
How To Get Started In Multifamily Investing
Once you know in your heart that multifamily investing is something that you want to get started with, especially so that you can build passive income and generational wealth, the next thing to do is to establish a plan of action.
If you’ve never invested in a multi-family property before, the good news is that it’s easy to get started with buying your first property because, depending upon the location, and your method of financing, you may be able to finance a multi-family property for little money down.
Over the last 20 years, many investors have started small by investing in duplexes, fourplexes, or triplexes. You may want to consider going this route, especially if you’re willing to house hack and live in one of the units of your multifamily property while you rent out the other units to tenants.
After you invest in your first multifamily property, your goal should be to improve the property and add as much equity as possible. By following a strategy, you should be able to also increase your net operating income, refinance that property in a few years, then utilize that money towards purchasing another multifamily property.
During the process of investing in multifamily properties, make sure that you’re prepared to treat your real estate investment as a business.
This means that you should take the time to learn everything that you can about multifamily investing and be willing to invest the time and effort into improving your property because this is what’s going to enable you to invest in multifamily properties, create passive income streams and build generational wealth.
Watch Out For Red Flags
When you’re getting started with investing in multifamily properties and building generational wealth, one of the most important things that you want to do is watch out for red flags.
Many investors make the mistake of ignoring the red flags that pop up before closing on a deal and they realize after it’s too late that they invested in our property which they should not have spent any money on.
Some of the most common red flags to watch out for when investing in multifamily properties include investing in an area that’s on the decline economically, or it has a high crime rate, while other examples of red flags include investing in a property that has significant deferred maintenance.
Besides watching out for red flags, make sure you do your due diligence and take the time to thoroughly analyze a multi-family property before investing in it because you want to make sure that the property makes financial sense.
Keep The Focus On Passive Income
Make no mistake about it, investing in multifamily is a great way to build passive income and generational wealth but it’s possible that owning a multi-family property can become a major headache for you if you do it incorrectly when you’re starting out.
Once you get your first multi-family property under your belt, the most important thing that you need to do is hire a property manager because this will take the hassle of having to manage the property off your shoulders so you can focus on enjoying the passive income that comes from owning that property.
Thanks to the internet, hiring a property manager is easier than ever before because there are a wide variety of reliable property managers available across the United States.
Before hiring a property manager, make sure you take the time to research the company on the internet so that you can have confidence that you’re going to be hiring a reliable and trustworthy company that has the right team to manage your property.
As I mentioned at the beginning of this article, there’s never been a better time in recent history to invest in multifamily properties than right now because, with historically low mortgage interest rates combined with the demand for rental properties, every accredited investor would be wise to add at least one or more multifamily properties to their investment portfolios, especially if they want to build generational wealth.
Contact Trier Capital
At Trier Capital, we specialize in sourcing, acquiring, and managing multi-family properties for our clients Nationwide.
If you’re ready to invest in a multi-family property but you don’t want to go to the time, effort, and hassle of having to find the right properties & manage yourself, I encourage you to contact me and learn more about the benefits that come from partnering with my company.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
Learn more about us by calling (630) 229-2383 or click here.