According to real estate investor Grant Cardone, investing in multi-family dwellings is the best and safest real estate investment there is right now. Cardone says he currently owns over 4,000 apartment units for rent and plans to invest in more in the future. So why is this real estate investor and best selling author promoting multi-family dwellings as such a great investment in the real estate sector? Read on to find out below.
Houses are a big risk and a liability when it comes to investing. Grant Cardone says that houses require lots of upkeep and they can actually make you lose money if you do not find tenants. The housing market is also sluggish right now. Many young people are not buying homes. People entering retirement are also looking for apartments aka multifamily dwellings and not homes. Common sense will tell you that the demand is greater for apartments and not houses.
Even if you try to buy houses when they are priced low and sell them at a profit, a weak housing market can make this very unprofitable. While you are waiting for prices to go up, you must pay large upkeep costs which can negate any earnings you earn from a sale. This is contrast to investing in an apartment building. Even if you do not have a 100% occupancy rate, as long as some units are occupied in your building, you should have a profit coming in and not a loss.
So does Grant Cordone offer good advice? Or is this a flop of an advisement that should be avoided? I would have to say that I agree with Mr. Cordone. Investing in apartments is much safer and allows you to use other people’s money to invest in buildings. However, the housing market can vary greatly from area to area. Some places may see housing booms, while other places may see low demand for apartments. The quality of the building and neighborhoods must also be taken into consideration.
When you take into account the above micro factors I described, multi family dwellings can be a good choice but only if other factors make them appealing and safe. One factor that makes investing in apartments a good idea is that cities that are developed will often not see any more buildings constructed. So if you can invest in an apartment building for sale there, it may prove to be a shrewd and lucrative investment.