The low prices and easier access of single- family properties may be tempting, but keep these three things in mind when hunting for your next investment opportunity: 1. Getting a loan is easier for multifamily properties than for single-family because multifamily produces stable cashflow without being dependent on an individual tenant. 2. Building a real estate portfolio is faster with multifamily properties. 3. Managing multifamily
properties is more efficient than single-family homes because you can hire a property manager to handle it for you.
The true cost of homeownership is the loss of time that multifamily saves you, and the loss of the strong cashflow that multiunit complexes have the ability to produce. •
build their portfolio. However, invest- ing in multifamily properties (large, multiunit residential complexes) has considerable advantages over small, single-unit properties. While the price tag on a house may be less, it is more likely that banks will approve loans for a multi- family property than a single-family home. The reason for this, and the number-one reason my portfolio consists solely of multiunit apart- ment buildings, is that multifamily real estate produces monthly, pos- itive cashflow, and does not rely on a single tenant to occupy the unit or make their rent on time to see a re-
turn on investment (ROI). Therefore, multifamily properties are a much less risky investment because they are consistently generating income, even with vacancies. Bringing my portfolio to almost 8,000 units took a lot less time with multifamily properties than it would have taken if I were building my portfo- lio with individual, single-family units. Not only did investing in multifamily save me time in building my portfolio, but it also increased my efficiency in managing those properties. It is much harder to contract a management company for single-family units than it is for apartment complexes.
Grant Cardone owns and operates seven privately held companies, and a $1.8B real estate portfolio as the Founder and CEO of private equity real estate firm,
Cardone Capital. Cardone is also the founder and leader of The 10X Movement and The 10X Growth Conference, which is now the largest business and entrepreneur conference in the world. Moreover, Cardone founded the Grant Cardone Foundation, a non-profit organization dedicated to mentoring underprivileged and troubled youth in character and financial literacy.
thinkrealty . com | 33
Made with FlippingBook Online newsletter