You may be making a serious mistake trying to build your wealth through single family real estate strategies, without knowing the benefits of Multifamily Real Estate.  In fact, picking the wrong strategy right now while you have time, could literally alter your financial future.  Every serious investor should know the 4 reasons to look at Multifamily while they are evaluating their investing strategies.  There are several reasons why we are convinced that investing in Multifamily (apartment buildings) is hands-down the most direct and powerful way to build wealth in real estate and secure your financial future and lifestyle.

Reason #1: You get paid THREE times for each deal.

When you invest in multifamily, you make money three times, as opposed to residential strategies where you just hope to get paid on the sale.  When you buy a multifamily, you negotiate what the pro’s call an “Acquisition Fee,” which is literally just a check that goes to you at closing for putting the deal together.  For example, on the 40 unit apartment complex which we bought for $260,000 (and renovated with another $190,000), we got a nice fat $30,000 check the day of closing to put a smile on our face.  Next you get paid CASH FLOW each and every month.  This deal currently generates over $8,000 per month in net positive cash flow. That’s over $100,000 per year PASSIVE income, which is more than some people’s salaries.  Finally, and very importantly, you have the equity creation on the backend.  This deal created over $200,000 in equity for us.  Also please keep in mind this is not an unusual deal that is only available to us – these deals are out there everywhere now due to the recession.

Reason #2. Creative Financing

Most people are scared of Multifamily because it seems too large, or they think they have to be millionaires.  I’ll be honest, if you’re flat broke, it’s going to be tough to play this game.  But if you have a little something saved up or a job, then you can play.  One of the best things that makes multifamily accessible to almost anyone is that you can do almost anything creatively to finance a deal.  One of the best ways is raising private money.  For example, that 40 unit cost me a total of $10,000.  That’s right, just ten grand.  The remaining total of $450,000 I raised from private investors getting a steady 10% return.  Raising money is actually much easier for multifamily because it is backed by a cash-flowing asset, as opposed to a rehab, where you have to wait (and pray) for the house to sell and hope nothing goes wrong.  Additionally financing is easier for Multifamily buildings because the asset behind it is producing steady income.  Think about it – some of you may own houses worth the $450,000 invested in that 40 unit…but does it put $8,000 per month positive cash flow in your pocket?

Reason #3: Freedom and Cash flow

This is where it all comes together.  Multifamily real estate, through the cash flow and equity buildup is they key that creates freedom for you.  A multifamily business is a true “hands-off” investment.  Everybody in real estate is talking about “systems” but they never give you a good one that truly makes things passive for you.  A cash flowing apartment building that you own is truly the closest thing to hands-off passive income that you can ever have in real estate. For example, that 40 unit produces $100,000 profit per year, and takes only 3 hours per month for me to manage, just checking the books.  The beautiful thing is it frees up so much of my time to go find more deals.  When I was dedicated to the single family flipping business, after a few houses, I literally had no free time to grow a business or spend with my family. Remember our motto: “More Cash Flow = Less Stress!”

Reason #4: Fastest Way to Build Wealth:
What it Takes to Accumulate $1 Million in Residential vs. Multifamily

This one is a big secret most people don’t know.  The truth is, building wealth through Multifamily investing is definitely easier and less time consuming than through any residential strategy.  Whether you choose to dedicate yourself to residential or multifamily is a choice that could literally make or break you in the long run.  Let’s look at a specific example, shall we?

Many investors make the mistake of being shortsighted in planning, so they look ahead only about 1 year, and therefore fail to properly see the advantages of multifamily and pitfalls of residential in comparison.  When you’re in “scramble mode” to just pick up cash, and seeing ahead only for the next 6,12, or 24 months, residential flipping seems attractive because of the promise of quick, big paychecks.  But as soon as you take your plans out any further than a year you will realize that that residential strategy actually costs you more.

To put it in perspective.  If you wanted to accumulate $1 Million, you would have to do 50 rehabs at an average net profit of $20,000 (which is a conservative number).  At 10 deals a year (not a small amount), it would take you 5 years, AND – this is the big catch – you would have to literally save every penny and not spend a dollar of those profits.  Furthermore, you would be working almost a full time job to run the business, no matter how much you try to systematize.  I have personally rehabbed over 70 houses and can tell you honestly I can’t wait to never have to rehab a house again.  Don’t get me wrong, it certainly makes money, but it is a tough business and a grind, no matter what they say.

Contrast that with Multifamily investing.  You could do an average deal such as our Incline Apartments, our 40 unit apartment complex which we purchased and renovated.  The day we closed that deal we made $30,000 in cash as a “bonus” for putting the deal together, and it currently generates close to $100,000 NET cash flow per year. Every year.  Furthermore, we have created about $200,000 in equity.  That deal currently takes me just 3 hours per month to just manage the books.  To make that same $1 Million, you would just have to find and complete ONE apartment deal like this one each year, for the next 5 years.

So to sum it up, while making plans it would be wise to ask yourself this question:
Would you rather pursue a residential flipping strategy that by definition requires working overtime trying to do flips or rehabs for the next 5 years, trying to build that million dollars while never spending a piece of it, and at the end still have no cash flow?  And even worse if you stop working, get disabled, or take a break from churning out deals, your income immediately stops as well.
-OR-
To get that same Million net worth with Multifamily, would you rather focus on doing just 1 or 2 solid, wealth-building multifamily deals per year, which will take just a few hours per month once they’re complete, and will leave you with free time, and most importantly, will produce consistent cash-flow and pay you returns for the rest of your life?  And when you choose to take that break or go on vacation, your rent checks will still be coming in. Which do you prefer?

About Chris Urso & National REIS: Chris Urso founded National REIS and has raised over $7 Million for real estate investing in the past 36 months.  National REIS is an exclusive New York based real estate investment firm specializing in Multifamily Investing, dedicated to Building wealth through cash flow for beginning, advanced, and high net worth individuals.  They work with both passive investors and active investors as partners (on a case-by-case basis).

COMPLIMENTARY MULTIFAMILY INVESTING INFO FOR SOUTH JERSEY REIA MEMBERS:

Download a free copy of the multifamily whitepaper, and receive our Multifamily Investing tips at: www.nationalreis.com/wpaper

National Reis | 50 Elm St Huntington, NY 11743 |Tel 631.683.5176 | www.nationalreis.com

PS: if you’re curious to see our latest 23 unit acquisition, a bank-owned townhouse complex, check it out here:

Let’s start the week off right with a multifamily investing tip straight from our new 37 unit apartment complex which we just bought for $1.2 million which we raised from our private investors.

Today’s tip is about INSPECTIONS!

KEY POINTS:

• Make sure to inspect every single unit before closing.
• Ensure your purchase contract allows access to 100% of the units during your “due-dilligence”
• TIP FOR MAKING MONEY: This is the place where you can usually negotiate extra money last minute before closing if the seller has been less than forthcoming about repairs in the building.
• Insist on credits at closing for any and all repairs. You will actually get paid cash at the settlement table to make these repairs.

MORE INFO:

When you first make offers or do an initial walk through you don’t have to see every single unit. In fact, it’s not even practical. However, which units do you think you’ll end up seeing during the initial walk through? Probably the best ones, right?

Before closing on this 37 unit we got to walk through ALL of the apartments, and uncovered this lovely one which was a complete mess.
Now a valuable tip is we asked for TWICE what the unit would cost us fix as a credit at closing. This means the seller gave us cash to repair this unit, and after we’re done we made an extra profit on it.

Hope you enjoyed this tip and it will be useful for you as you build your multifamily fortune along with us!

More on the 37 Unit Building:

Click for video overview of our 37 unit apartment complex asset – we got this Multifamily asset as a river front property with city views!  We are walking into $90,000 cash flow from day 1 of closing, before we even improve the building.  Pretty good, right?  That’s the power of multifamily investing!

Check out this photo from yesterday of us at the property with some of our Elite Partners!

At the 37 unit with some of our Elite Partners

We are very excited about this deal, and also our Elite Partner Program, so this Thursday Oct 27^th at 8:00pm I will be presenting a free webinar to share with you how to rapidly increase your real estate investing results.

You’ll receive a valuable overview of the Elite Partner Program (EPP), our very unique and exclusive opportunity for “Active” investors looking to rapidly accelerate their wealth building and investment results. The Elite Partnership is a very aggressive and exclusive 12 month long partnership opportunity limited to only 20 individuals, with just 5 spots remaining.

>> Click here to sign up now for Thursday at 8:00pm

We will be breaking down this latest 37 unit deal, and sharing opportunities to work with us and leverage the same knowledge and techniques we used to acquire the 37 Units and raise $1.2 Million dollars for this deal.

We will also be sharing some case studies and success stories of ordinary people achieving extraordinary wealth-building results with Apartment Building investing.

You should join this webinar if you:

• You have always wanted to partner or invest with a proven successful organization to work with for the long term, or
• You would like to learn how to “do exactly what we do” and build your own successful apartment investment business

During the webinar we will show you how you can mentor and partner with us to accelerate your investing results and ultimately your goals of financial freedom and a secure retirement.

>> Click here to sign up now
Elite Partnership Webinar
Thursday at 8:00pm

The EPP is unlike anything you’ve ever encountered. For the right kind of person this will be a revolutionary experience that will let you break through barriers and eliminate the challenges that stop most investors from achieving and exceeding their financial, income, and lifestyle goals.

Don’t miss this opportunity to learn how to secure your future.

Remember our motto: MORE CASHFLOW = LESS STRESS!!

We’ll see you on the webinar!

More photos from this weekend…

Check out the City Views of the 37 unit!! At the pool trying to figure out what to do with it..

Action shot of us in the parking lot of our new 37 unit with Jesse who was key in the deal and is heading up management..I promise we weren't posing for this one...

What is everyone thinking about?? At our 23 unit with the Elite Partners. This deal is currently under contract and almost completely funded. If you are interested in investing in any of our projects please Click Here to Contact us to schedule a free consultation.

If you want to work alongside us and experience Multifamily Investing, join our Webinar on Thursday Oct 27th at 8:00-9:00pm EST to learn about our Elite Partner Program and how to be considered for it.

Click here to sign up now for the webinar.

Wanted to share some info based on my experience raising over $7 Million dollars for real estate.
Check out this quick tip on how I found an extra $150,000 for a deal. Sometimes it’s the little things that count the most, right?

Also don’t forget we have our live “Open House” at the National REIS office next week on Thursday Oct 20th at 7pm. You can read more info and sign up here: http://www.nationalreis.com/october20

To download our whitepaper which I mentioned in the video go to http://www.nationalreis.com/whitepaper or fill out that yellow box at the top right of your screen..

Multifamily Investor Orientation with Chris Urso
LIVE 2 Hour Evening Event in Long Island!

WHEN: Thursday October 20th 7:00-9:00pm
WHERE:
The National REIS Office
(in Long Island)
50 Elm St
Huntington, NY 11743

HOW TO SIGN UP NOW:
Regular Admission: $70
Discounted Online Admission: $39

Click Here Now for More Info
and to Save Your Spot Now
because this is RSVP only!

Valuable Information You Will Learn:

You will learn some of the biggest keys to success in this business in a compact 2 hour format, not to mention the info I’ll be sharing won’t be available anywhere else because it’s based on a unique strategy I developed myself from 10 years of hard-earned deal-making experience!

I’m here at Harbour House Apartments in Cincy overlooking downtown.. check it out!

CASH FLOW CASH FLOW CASH FLOW!

This is a great opportunity to earn excellent cash flow as a passive investor, you can also invest with your IRA. Contact our office for more information 631.683.5176

From our experience most people miss the opportunity to take advantage of multifamily real estate because of two main factors:

1. They are simply not aware they can use IRA funds to invest.
2. They don’t know how to get involved.

That is where we come in. We take the time to educate investors on how multifamily real estate opportunities are located, analyzed, negotiated, financed, operated, and eventually sold.

Making an IRA investment in multifamily real estate is fairly simple. After deciding to invest, the first step is to open a self-directed IRA. This can be done in as little as two to three business days. Next, you will need to fund the IRA. This can be done by doing a simple rollover with no tax consequences (of course, please consult your CPA or tax professional for proper tax advice). This can be accomplished in as little as one day or could take up to three weeks depending on the company currently holding your funds. Once your account is funded it’s now just a matter of filling-out a few more forms to transfer into the IRA investment tax deferred. It’s that simple.

To learn more about IRA investment opportunities in multifamily real estate we encourage you to contact Maria Meyer at our office to see how easy it is to become a partner in our next project. In the last three years National REIS has raised close to $5,000,000 for various projects with over half of those dollars coming from investors utilizing their IRA to invest.

1. Inexperience.  Newby’s ALWAYS under-estimate the level of labor required to run the business.  While multifamily management is not rocket science there are multiple skill sets required for success.  As with McDonald’s, whereas anyone can make a hamburger, there’s only one company making them by the billion.  Why?  Systems.  They have systems in place that are reliable, transferable and highly structured.   This a team sport and it is your job to be the GM of your team.
2. Lack of Dedication.  The multifamily business is not a “hobby” or part-time business.   In fact, it requires dedication if you want to be an active (successful) investor. The first step is educating yourself by learning from others that have done what you want to accomplish. Then you have to understand that this is a marathon sport and there is no magic pill that will make you rich over night, however if you stick to a plan it is possible to build massive cash flow and wealth.
3. No Capital Expenditure Planning.   A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year (http://en.wikipedia.org/wiki/Capital_expenditures).    This expense category must be planned and accounted for in annual budgets.  Multifamily real estate is a fixed asset class with long operational demands and high capital requirements.  Our rule of thumb this is to reserve approximately $300 per unit per year. For example on a 40 unit building we reserve $12,000 per year into a separate escrow account for future capital improvements.  While income can be static expenditures can vary widely and you will almost always come across the unexpected, planning for Cap Ex means known  “surprises” are not a surprise.
4. Buying too small-  no  economies of scale.  The reality is that it will always be tougher to run a 54 unit deal as efficient as running a 154 unit deal.  The expenditures in every category are going to be higher (on a per unit basis) with  a small property.  Now, this is no reason to stay away from the boutiques (boutique: quality multifamily properties under 100 units), as with any real estate deal if you buy a property right no matter the size you can be very successful.   This is just a note to remind you to think BIG!