Real Estate
Investing in multi-family real estate to support your family

Investing in multi-family real estate to support your family

Are you interested in a secure financial future for your family and children? I also. Here is a small example of why I am so determined to create wealth by investing in multi-family real estate.

As a parent, family person, or individual, one of the best decisions you can make is the right investment from the start that will help solve all of your future financial problems and needs.

I’m going to share with you a real-life example from my own life of how using a $ 35,000 investment that I insured a multi-family property generates an annual cash flow of $ 24,000 and will earn approximately a quarter of a million dollars in equity over the next 12! years! Starting with that $ 35,000 investment, my wife Lisa and I secured a college fund, living expenses, and monthly income for our newborn son. This is how it happened …

About four years ago we had the opportunity to purchase a mixed-use property (three apartments and a store) in Wilkes-Barre, Pennsylvania. It wasn’t a large property, but we liked the location (five minutes from the new casino) and thought it would be a good long-term retention.

The purchase price was $ 65,000, but it took $ 75,000 in renovations, bringing the total investment to $ 140,000. At the time, we only had about $ 35,000 in cash budgeted for this, so I called an investor that I had worked with in the past and they agreed to lend $ 105,000 at 10% for 1 year.

We closed the property, completed the renovations in three months, and the property was 100% occupied in eight months, generating more than $ 3,000 per month in revenue. Now the best part: the beauty of commercial real estate is that if the cash flow is there, the banks are willing to lend.

We have a friend who works in the commercial banking department of a small community bank in Pennsylvania. I called him to inquire about a business loan on income property and he said it would not be a problem, I just needed to send in the package with the income and expenses, the leases, the work completed and a little background. on myself.

Thirty days later I saw how easy it was to create wealth through multi-family real estate. I went into the bank and they gave me a check for $ 105,000 at 6.5% over 15 years, and it was made out to my company. I immediately paid the investor. Now, three years later, the property generates positive cash flow and has only 12 years of mortgage left. In just 12 years, we will be earning more than $ 24,000 in annual cash flow and have accumulated more than $ 240,000 in equity.

This isn’t a massive skyscraper offering, but it’s an illustration of what you can do when a good opportunity arises. As an investor, you are armed with the right knowledge.

My son is just over a year old, and by the time he is 12, the tenants will pay for the property in full, and he will basically have a full college fund along with cash flow at his disposal.

Now scale that scenario to a 40-unit building; all you have to do is add a zero, the principles are the same! You may be creating wealth for yourself by purchasing an income-generating multi-family building, just like we did, and on your way to increased cash flow and equity.

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