Below is a brief excerpt from today’s Bloomberg news. Dividends are being slashed at the highest rate since 1958. This means that many people nearing retirement won’t have the money they need. What are you doing to secure your financial future?
Oct. 22 (Bloomberg) — Dividend payments by companies in the Standard & Poor’s 500 Index may plunge 10 percent this quarter, the biggest decline since 1958, as bank failures and slowing economic growth stifle payouts, S&P said.
“We’re seeing an enormous amount of cuts,” New York-based Silverblatt said. “There is a lot of pressure on dividends, and a lot of people are concerned about their cash flow.”
If you are truly concerned about your own financial situation, you need to begin taking action right now to make sure that you have a steady stream of dependable income in the future.
Become a student today and begin learning how to take your financial future in your own hands. Control your own wealth and destiny.
Enroll Now at Buy Your First Apartment Building E-Course
If your still not convinced, see if any of these 15 reasons strike your fancy:
Top 15 Reasons to Invest in Apartment Buildings Right Now
1) You control the cash flow. Unlike other, passive, investments such as stocks and bonds, the owner of an apartment building is the CEO. If you need more cash flow and the local market will allow it, the owner can raise rents.
2) If you don’t want to manage the day to day operations of the apartment complex then you can delegate the management duties to a qualified and licensed real estate management company.
3) It is possible to get seller financing. Many apartment building owners are savvy investors and are more than willing to offer seller financing. This makes the purchase of an apartment building easier without having to qualify for a bank loan.
4) All of the units are under one roof. This fact makes management easier and more cost effective.
5) Forced Appreciation. Apartment buildings are valued according to the net operating income. This means that a motivated apartment building owner can directly increase the market value of his or her investment by cutting or reducing various maintenance costs. Value can also be increased by making strategic improvements to the property.
6) The stock market stinks. The stock market has been a roller coaster ride for most investors. Why trust your hard earned money to chance? Apartment buildings offer a relatively low risk investment with a high rate of return.
7) Your job stinks. If you are employed full time working for someone else you can never be sure how long you will have your job. The income from a well managed apartment building is relatively stable and secure. Most tenants will be on a year long lease.
Appreciation. During times of high inflation, such as now, apartment buildings tend to see their value increase. Historically, rents tend to rise along with the prices of other goods and services.
9) Lower cost per unit. Typically, apartment buildings have a lower cost per each unit then residential homes or triplexes and duplexes.
10) You control the quality and quantity of your income. As an apartment building owner you can control the quality of your income. This means that you determine who rents from your building and who doesn’t. The quality of income from a person employed as a school teacher for 15 years is different then the quality of income derived from a shiftless day laborer. You decide.
11) Maintenance on apartment building units can be a lot more affordable then maintenance on an equal number single family home units. Generally, contractors will be more competitive on their bids for large jobs, under one roof, then they would be for an equal number of small jobs spread across town.
12) Retirement money. An apartment building can be a steady source of income during your retirement years. An apartment building investment will allow you to work only part time while still receiving a full time income. If you need an affordable place to live you can live in one your units.
13) Pay half the taxes you now pay. Standard tax rates of 30-50% don’t apply. You will be able to pay the capital gains rate of 15% by buying and holding.
14) Pass on the wealth to your children or grandchildren. Have you thought about how you will pay for your children’s or grandchildren’s college education? Apartment buildings can be easily passed on to your heirs. If they lack the experience or desire to manage the building you can have management already in place for them.
15) Foreclosures. Millions of families are now facing foreclosure. These displaced people will need a place to live. They will most likely be renting because mortgages are harder to come by while home prices are still dropping in most areas of the country.
I urge you take a small step today to fortify yourself against the uncertainty of the world economy. Enroll in the “Buy Your First Apartment Building E-Course”
Buy Your First Apartment Building E-Course
You will soon be on your way to building your real estate investment portfolio. The risk is all mine. If you are not completely satisfied you can return the E-Course for a full refund within 30 days.
