Apartment investing is the vehicle that will help you achieve your dreams and goals. I’ve come across so many people who have told me that they will start investing in apartment buildings and other commercial property once they start making money in real estate. Instead, they decide to struggle and compete with more seasoned investors who have more experience, more knowledge and more financial resources believing that eventually they will hit a goldmine of a deal. Unfortunately, in most cases, it doesn’t work that way.
I believe that one thing you’re looking for is to find something better in life. Maybe you want to get out of debt and live the lifestyle you’ve always dreamed of, but had no vehicle to take you there. Maybe you’re looking to take your real estate investment portfolio to another level. Whatever reason you have, you’re in the right place because like I said earlier, apartment investing is the vehicle – it is the goldmine you’re looking for. More importantly, let me help you get started.
1) Learn everything you can first. One of the biggest risks that any investor faces no matter what type of property they choose to invest in is lack of knowledge. Either they didn’t know about the buying and selling process, they didn’t know enough about the property itself before investing in it, or maybe they didn’t have the confidence in themselves to really know what they as an investor were really capable of. My response is to eliminate your risk and educate yourself. Learn everything you can first. All of what I just mentioned can be learned through forums, educational materials, and teaching seminars.
2) Work on mastering fear. Fear can work wonders on an investor especially when there are so many unknowns about what you’re really getting yourself into. When you’re educated about what it takes to become an apartment investor, a lot of that fear will go away simply because you have knowledge. Any remaining fear is based on attitude and emotion. The best thing you can do for yourself at that point is to look towards your goals. What do you want to achieve?
3) Pick an area and focus on it. Learn everything you can about the area. What’s the job growth like? What’s the population growth in the area? How high are the rents being paid for commercial properties? Look at the number of bedrooms, the square footage of the units and the quality of the units that are available. Are there new businesses coming into the area? What is traffic like in the area you’re thinking of investing in? Also, get familiar with the numbers. You should know the capitalization rates of properties in the area. You should know numbers – how much properties are being sold for. The main idea here is to become familiar with an area so you can spot a good deal when you see one.
4) Practice calculating deals. Believe it or not, you can go on loopnet.com right now and practice learning to crunch the numbers. This easy action will not only help you get familiar with calculating numbers, but it will also help you get familiar with what’s being offered in your investing locale. When you’re familiar with the market numbers, you’ll feel more confident when you start to submit offers to property owners and brokers.
5) Practice calling sellers. Even I had a fear of talking to sellers when I started out, but what I learned was that through practice, I could handle it. In fact, I actually started to get really good. I would scan property listings for potential properties I was interested in and give the seller a call. I would introduce myself and let them know that I was interested in their property. I then asked them what they could tell me about their property. Simple, right?
Now you and I both know that there’s more to investing in apartment buildings than what I’ve just mentioned, but these are a few actions that anyone with or without any investing experience can take. Once you start taking small steps towards reaching your investment goals through apartment investing, you’ll find that you are able to take bigger and bigger steps. Start your education and do what you can to get started today.