Buying Apartment Buildings is a great source to build and make Passive Income. This is something I am passionate about and want to do in the near future. Everything I do now is to build momentum to own a few apartment buildings if not more. One thing that always surprises me is the fact that there are a few types of people in this world.
- People who rent.
- People who own a single family house.
- People who own multiple single family houses.
- People who own multiple apartment buildings.
Successful people strive to create success while some families generation after generation will always keep renting and/or trading their time for money and never buy or figure out the wiser way to increase family wealth.
My Knowledge of Apartment Buildings
I’ve always thought about ways to become rich and/or to acquire wealth since I was a kid. Of course, I’m not exactly where I would like to be but that’s no problem to me. I’ve enjoyed the journey and it’s worth every minute of it even if you don’t get to where you want to be. In the end, the journey is the exciting part. I’d rather be doing this type of stuff rather than watching TV, watching sports or just plain wasting time. It’s exciting to see things grow into success.
My mom has always been into buying single family homes but it was decent but in my mind. I always thought it wasn’t the best. Buying an apartment building would have a much bigger return and would be less risk. I always thought man, who own’s the entire apartment building. This guy must make or earn anywhere from $200,000 to $500,000 per month. That’s something crazy that only so many people can grasp.
There was one time when I was younger and worked a side job at Home Depot promoting a 10% discount for people who signed up for the Home Depot credit card in the Electrical Appliances area and came across two guys who wanted to get a 10% off a big order. Curious, me. I talked to them longer to dig deeper.
Guy #1 – Owned a few 10-20 unit buildings, revamped and rented out. Probably, owned about 40-60 units in total. 40-60 units equals out to about $40-60k+/month in revenue.
Guy #2 – Owned a 100 unit building, rents out. $100k+/month in revenue.
It’s always been in the back of my head and I’ve always been impressed by the fact that they owned that many units and they rent it out to individuals and/or families. Crazy!
Why Apartment Buildings?
Apartment Buildings I have always had an idea for and now that interest has been sparked even higher. With an apartment building, you would put money into it that you don’t need and it will provide you with a way to preserve wealth and earn passive income.
The benefits of owning an apartment building is huge. With a $1,000,000 property and 20% down = $200,000 invested. If the property makes 10-15% gain which would be $30,000 per year profit which is 15% it would take 6.7 years to recoup your initial investment not including if the value of the property increased within 6.7 years.
Technically, your renters would be paying down your debt and be paying the 3% interest on the loan you took out to buy the apartment building.
This means taking out a loan for 3% is perfectly fine if someone else is paying that 3% interest rate for you.
The idea is that if you were to keep the property and the value of the apartment building never goes up. It would take 33 years for your little apartment building to pay you $1 million dollars.
Now the goal would be to increase your yearly income profits so you can funnel it into apartment buildings and/or find investors to share profits on an apartment building with you.
Earning capital to invest is what we do here. We create internet based businesses to increase our monthly income, yearly income and overall yearly profits. We create value to gain a monetary value from it in return for the value which we create.
The value we create is from knowledge, products, courses, services and more.
You can create an E-Commerce website and offer products to your customers and earn over $1 million per year.
You can create a course or education course which makes you over $1 million per year.
You can create a millionaire blog.
You can private label products on Amazon.
You can make money through internet marketing.
Now with the internet there are tons and tons of ways to create an income online and not have to work the traditional 9 to 5. I recently quit my full time job as a System Admin about 1 month ago and I’m eternally grateful to be able to work from home and not have to commute to work. I get to spend my time creating meaningful value.
If you didn’t already know rich or wealthy people can only have so much money in the bank. The bank only federally insures up to $250,000 in US Dollars if something was to go wrong with it. You had $1 million in the bank and they would only insure $250,000 if something was to go wrong.
With real estate, if you put $1 million into it. It’s not that difficult for you to earn 10% on it as well as the value of real estate will technically go up with inflation.
The only thing that doesn’t go up with inflation is worker pay or worker compensation.
Once you have enough apartment buildings. You’ll have a significant amount of passive income coming in. I have no doubt that there are people out there who earn $250k to $1 million per year through passive income from their properties without doing much.
That’s amazing considering that most people with a full time are perfectly happy making 6 figures the fact that they probably work 40 hours to 80 hours per week when an investor would work much less then that.
Here are some resources and I plan on building out this section of the website in the near future.
- Best Real Estate Investing Advice Ever with Joe Fairless – Podcast
- Lifetime Cashflow with Rod Khleif – Podcast
- The Michael Blank Podcast
What Do You Think?
What do you think about apartment buildings? Have you ever thought about buying one? Do you already own apartment buildings?