Flipping Apartment Complexes... really that tough? 3 myths debunked.

By Michael Kimble

Today's real estate market conditions have put in place an unfair advantage for any investor who wants to tackle flipping apartment complexes. Why? Because the common myths about flipping apartment complexes keeps the ignorant from taking the first step. Most will assume the tasks involved are tedious and expensive, when actually it's quite like flipping single family homes.

I'm disabusing you of 3 incorrect assumptions below about flipping apartment complexes...

Myth 1... Bad credit means no deal! Not true! Banks actually care LESS about credit scores with apartment complexes. Banks know for a fact, private individuals rarely have the capital and cash needed to even get a downpayment on large multi-family complexes. What they truely look for is using the apartment complex itself as collateral... or also known as a non-recourse loan. The investor's credit score is NOT a factor.

2. You need a lot of money to invest in apartment complexes FALSE! Apartments, as part of the commercial asset class, have a long-standing tradition of being bought with other people's money. The use of limited partnerships and syndicates bringing together private investors to do these deals is very typical. And with the current economy there is no shortage of people realizing the HUGE income potential and tax benefits of investing in apartment complexes.

Myth 3... Apartment deals are just too difficult in comparison to flipping single-family homes. Untrue! Flipping apartment complexes is hassle-free by contrast. Most investors are intimidated by the larger numbers in these deals. That means less competition, and more buyers for your apartment deals. Property management companies are hungry for more business, to handle the day to day issues. Put those big numbers in these deals as fat zeroes on your assignment fee checks.

Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people's money makes it the perfect opportunity for today's investing conditions. They just aren't the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing. - 23204

About the Author:

Michael Kimble is a successful real estate investor, specializing in marketing. Wholesale Real Estate, is his site, where he gives away 7 free marketing systems for other investors.