Comments on: Apartment Building Investors Versus Apartment Building Speculators

By: Eric

Eric — Tue, 27 Oct 2009 16:43:32 +0000

@Rick makes sense that an older aparment owner would be more interested in a continuing income stream than in a lump payment. Thanks for pointing that out.

My question for the group is that, if you are planning on buying an apartment and making some changes, like shaking up the renter mix and fixing up the units to get greater rent (hopefully), how do you both keep it conservative to factor in the unknowns as well as reflect the benefits from the changes you plan to make?
Eric´s last blog ..3 Secrets to Reading Housing data for the Real Estate Investor, Part 1: Understanding Seasonally-Adjusted Data

By: Bobby Drish

Bobby Drish — Fri, 28 Aug 2009 23:26:56 +0000

My closest friend cut BBQ in a kitchen before investing in apartments because 5 years ago there were books, available on Amazon predicting Wall Streets recent meltdown.
6 years later he controls 41 complexes worth $1Billion. He’s no smarter than you or myself. 16,000 people get up, go to work all for one thing – to pay him rent. .05% makes him $200k a month.
Now tell me buying any apartment complex is risky.
Far easier than buying a home. It’s easier to borrow $3million that cash flows on it’s own than a $300k house dependent on you keeping your job.

By: Apartment Prague

Apartment Prague — Sat, 27 Sep 2008 07:26:59 +0000

Now a days apartments rent is very costly , apartment builder investor earning more than investing.

By: Ned Carey

Ned Carey — Fri, 26 Sep 2008 21:24:20 +0000

Rick Wrote:
>”Nice try people”

It sounds like you are disagreeing, but it is unclear who you are disagreeing with.

>One has to understand the mentality of the seller.

Agreed all negotiation starts with understanding your opponent and his or her needs.

>If that does not work, walk away.

Hmmm,that sounds like a contradiction. If that doesn’t work maybe you just haven’t found what the sellers true needs are.

By: Rick Linhart

Rick Linhart — Fri, 26 Sep 2008 16:50:42 +0000

Nice try people.

One has to understand the mentality of the seller. I have appraised real estate for 30 years in Cleveland, Ohio.

Many sellers are older or retied and who most likely made two payments a month to pay off their mortgage.

To sell is to part with that income stream. It is easier to pull the sellers teeth with an old pair of pliers. Also the old timer has to give the govt. 28% in cap. gains. Ouch

To cool the situation offer a purchase money morgage for a five or ten year period that maintains 3 points over prime.

Make sure to lay out the payments on paper and also put in your down stroke. These folks want to study this stuff overnight or give it two a CPA. If that does not work, walk away.
Rick Linhart

By: Investment Blog

Investment Blog — Thu, 25 Sep 2008 06:28:28 +0000

I think the real question is there enough renters out there to rent the apartments or does these renters want single family homes to replace the ones they lost in the subprime crisis.

By: Funny T-Shirts and Blank TeeShirts

Funny T-Shirts and Blank TeeShirts — Wed, 24 Sep 2008 13:49:15 +0000

In my experience books magazines tapes etc… they’re ok. But the truth of the matter is if your a good business man or woman, you’ll suceed in most areas of business. Any person with an IQ over 80 can get a real estate license, but the fact is anyone who made they’re own money (not trust funders and makes a sizeable investment of his or her earned money is gonna know what they’re doing more or less. It’s the first time investors with no previous business experience who really suffer the most.
And yea I don’t appreciate speculators (usually). Unless I know more than they do. Then it’s great. Otherwise it’s the blind leading the blind