Apartment Complex Investing
I am a few chapters into a book on apartment investing. Its called Multi Family Millions. About reposintioning buildings and making big profit.
Anyhow...I've got a couple of questions already. That may be answered later in the book but want to post here to get some opinions.
Can anyone really go out and purchase one of these multi unit buildings regardless of income?
He says that multi family investment property loans are based on the operations of the building (rent/expenses) and not your income. Is this true? I just got pre-approved for a loan (single family home) just to see what I'd qualify for these days and they would give me up to 230k.....obviously not enough to buy much of a multi family in my neck of the woods. My understanding from Lindahl is that I could go buy a $2 M multi family if the numbers yeild that it could pay off the mortage and expenese...etc Is that true?
Second question, if I really can go buy this $2 M property the banks are going to want a down payment (I'll assume 20% or so). Meanding I'd need 400k down. Clearly being 25 and only a few years out of college I don't have that kind of money. How can I pull that off? Do I get an investor(s) to front that money for a share of monthly cash flow and a % of appreciation when I sell it? If that is possible what is a typical break down for those investors? Would they receive 20, 40....60% of the monlthy income and sales appreciation?
Hopefully I stated this clearly...I just have a thousand thoughts flying through my head after reading some of this book.
It's been enlightening to say the least. I thought I wanted to do flips but it really sounds like accumulating apartment buildings is a true wealth building machine.
Any insight would be appreciated.
BTW....David Lindahl has some excellent books. I read his emerging markets book a few months ago and it was one of the best I have read. Very informative.