Buy an Apartment Building Today?

July 22nd, 2008

Buy an Apartment Building Today?

In today’s turbulent financial markets many investors are looking for ways to grow their money that will offer a steady flow of predictable income and limited market risk. More and more people are buying apartment buildings to help diffuse the effects of inflation on their portfolios. Apartment buildings offer many exceptional advantages over traditional investments such as stocks, bonds and mutual funds. This is especially true in a recessionary market environment. In fact there are many attractive attributes of an apartment building investment that many investors who are new to commercial real estate may not even know about. There are some interesting facts about buy multi-family property investing that could radically change your perception about this fascinating and lucrative part of the investment world and inspire you to go out and buy an apartment building of your own.

Warren Buffet once said that “wide diversification is only required when investors do not understand what they are doing.” This quote seems especially true about the average investor in the United States who is listening to the advice of a financial adviser who in reality knows little more about the markets then himself. Usually financial advisers will recommend that a client be well diversified in investments ranging from stocks, bonds, mutual funds or maybe even a real estate investment trust. The adviser is putting his or her client into a group of “diversified” investments that were recommended by the firm’s top adviser and the research department. Unfortunately, however, for the individual investor is the fact that these investments are basically designed to preserve the firm’s capital under management and they don’t take into great regard the individual investor’s need to grow his capital.

The most successful investors and those that see the greatest returns are those that specialize in a particular sector. And the timing has never been better to begin specializing in apartment building investing for the average investor. The stock market is under intense earnings and inflation pressure. Investors need to look at a direct investment in an income producing apartment building to establish a profitable stream of cash flow that could last for decades to come. Many thousands of individual investors have been able to secure their financial futures by specializing in this unique niche and leaving behind the mediocrity of financial advisers and stock pickers.

If there has ever truly been a recession proof business it has to be apartment building investing. Even with the US economy is turmoil and business cutbacks people will always need a place to live. The actual demand for rental units in the US has never been higher then today. A total of 36 million of all households in the US are renter occupied. In total, a full 83% of all households under age 25 in the US are occupied by renters. Furthermore, a full 55% of all households between 25 and 35 are renters. The growing senior segment of society will be living longer and looking for rental properties as well. These are a few impressive statistics that demonstrate the strong current and projected demand for rental housing.

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This Post is from the BiggerPockets Real Estate Blog. Copyright © 2008 BiggerPockets, Inc. All Rights Reserved.

Buy an Apartment Building Today?

Technology Allows Success in Targeting Real Estate Niches

July 22nd, 2008

BullseyeIn the past, marketing was so unspecific that you really needed to take big swings to get customers. The concept of television advertising speaks to that. If a real estate agent ran an advertisement on the local television she would not want business that could be 100 miles from her.

But with the advent of the internet, you can really target your clients. Reading this press release brought this into focus.

The company targets commercial real estate. Medical real estate. Medical real estate in Florida. Mostly in medical real estate in Broward and Palm Beach.

That is specific marketing. Nothing fancy, the site is not going to blow you away, but if you are looking to invest in medical real estate in Southern Florida they will be your guys.

That my friends is targeted niche specific marketing at it’s best. They aim to be the experts in their field.

They get it.

Serving the state of Florida, FloridaMedicalRealEstate.com focuses on all types of medical real estate, including assisted living facilities (ALFs), doctor offices, medical storefronts and medical flex space.
“We encourage anyone in Florida looking for medical-related real estate to visit our new site, particularly those in Palm Beach or Broward counties,” says Michael Buonaituto, CCIM candidate and founder of FloridaMedicalRealEstate.com.
“Our state-of-the-art tools allow us to search for the best available properties based on a client’s specific criteria,” he adds.  via  MarketWatch.

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