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Top Ten Apartment Building Investor Markets

Apartments have been the best performers in U.S. commercial real estate,
with more Americans turning away from home ownership and choosing to rent
instead. That has helped drive down the U.S. apartment vacancy rate from 7.4
percent in 2009 toward the 5.3 percent rate seen before the U.S. economic
downturn.
One of the frequent questions that I receive from new apartment building
investors concerns location. Most people want to know whether they
are investing into a high growth area with a lot of rental demand. There is no
simple answer to this issue because the new apartment building buyer must look
at the local demand, state demand and national demand. Fortunately, there are
many areas in the United States right now where there is a strong demand for
rental housing at the local and state level. Demand nationally for rental
housing has been rising steadily for the past three years and a number of
factors will ensure that demand for rental housing nationally will continue to
rise.
According to US census data, demand for rental housing over the last decade
has been robust. This coincides with a steep drop in home ownership that began
in 2006. In fact 4.5 out of every 10 households added in the last ten years are
renters. The average in 2000 was only 34%.
So which states are seeing the largest demand for rental
housing? You might be surprised by some of the rising stars.
1) California - The Bear State was a poster child for
the residential real estate meltdown. Those people dispossed of their homes are
now renters.
2) Nevada - No gamble here. Foreclosure activity in the
last few years has been twice the national average.
3) North Carolina - Investors who got in early can now pat
themselves on the back.
4) Oregon - A young urban population searches for
affordable rental housing.
Below are some surprises: With one in every two new households renting
their homes, these states present a clear first movers advantage.
5) Ohio
6) West Virginia
7) Kansas
8) North Dakota
9) Pennsylvania
10) Kentucky
So what if your state is not on the list? It will be! No
state has been immune from the residential real estate crisis. Foreclosures are
continuing to climb nationally and all of those people thrown out of their homes
are going to need a place to live. Furthermore, those people who have been
foreclosed on have seen their credit scores severly damaged. They will not
qualify for bank loans to buy another home. And frankly many people were burned
so badly by the residential real estate market that they probably won’t be
buying again for a very long time.
The time to start buying apartment buildings is right now. But don’t jump
into it blindly. First, get the best education you can. It can literally mean
the difference between wild success and utter failure. Do your homework first.
Enroll in my Buy
Your First Apartment Building E-Course right now. Enroll
Here Now. In my exclusive e-course you will have instant access to all of
the tools, information and strategies that will take from complete begnner to
successful apartment building investor in less time than you think. Remember,
as always, if you are not completely satisfied with the information you receive
I will refund your entire tuition, no questions asked. Don’t delay your dreams
of financial independence another day. Enroll
Now
Posted by admin : Nov. 26th 2011
Post in Apartment Building Investing, Apartment Building News, Uncategorized | No Comments »

Apartment Investing Builds Retirement Nest Eggs

 

Dear Apartment Building Investor,
 
This is not meant to scare you, but according to The Wall Street Journal, the average 35 year old person in the United States will need to have saved a nest egg of at least 3 million dollars by the time they retire at age 65.  That may seem like an astounding number and it basically leaves investors a few choices to build a nest egg of that magnitude. 
 
The first choice would be to play the lottery and hope.  Unfortunately, right now this is the plan that many millions of Americans are undertaking right now.   You might be one of them.
 
The other, and more common route, is to contribute to your 401k and maximize on your employers matching contributions.  This has worked for some people in the past but as good, high paying, professional careers become more scarce in the United States this route doesn’t appear to be a wise choice for most people.  Most people’s 401ks are mostly invested in a basket of stocks, mutual funds and bonds.  The problem with putting your nest egg into a 401k is the fact that you are basically counting on the fact that the stock market will be in a bull market when you are ready to retire.  If not, you will end up like many people who in 2008, when the stock market nose dived, were forced postpone their retirement by another decade because the value of their retirement nest egg had dropped so dramatically.
 
So what is the answer to securing your retirement future?  It just might be a strategic apartment building investment.  Here’s why:
 
1) Other People’s Money. As oppossed to invesments in stocks apartment buildings offer the opportunity to invest with other people’s money.  In fact, investing in apartment buildings allows you to purchase the building with up to 100% other people’s money by using a combination of partnerships and traditional bank financing.  In addition, the balance of the mortgage is paid off over the life of the loan using other people’s money in the form of rent payments made by your tenants.  
 
2) Scarcity and Demand.  A record low number of multifamily units will be completed this year. The increase in rental housing demand is being met by a sharp reduction in the supply of new apartments. Just to put this into perspective, over the 10-year period from 1998 through 2008, there’s an average of about 240,000 new rental completions per year. Last year, there were 160,000. And this year, completions are expected to be below 80,000 units, which would make it a 50-year low. This level of new completions is actually less than the estimated annual loss due to obsolescence, meaning that we’re seeing essentially a net zero increase in the stock at a time of strong demand. New starts are not expected to approach historical levels until late next year, 2012, which means it would likely not be until late ‘13 and into ‘14 that we’ll see completions return to historical levels. And obviously it’s the completions that are what’s important in affecting the supply demand fundamentals.

3) Demographics.  Roughly 3 million young adults had been living with family during the past five years, according to data from the Census and real-estate investment brokerage firm Marcus & Millichap, and housing experts estimate that they now generate about one-third of rental demand.

 
4)  Instant Returns.  Factoring in maintenance costs and other variables, an investment property should produce at least a 6% return on the initial cash investment in the first year after it is purchased. For example, an investor who puts down $250,000 in cash on a $750,000 property would need to clear at least $15,000 in the first year.
 
What does all of this mean to you as an investor?  It means that the time to begin buying apartment buildings is right now.  I am not promising that you will be the next Donald Trump but I certainly believe that apartment building investing now offers one of the safest and securest ways to secure the comfortable retirement that you deserve. 
 
The next step is to get started.  But don’t go out today and begin buying apartment buildings unless you are properly prepared.  You need to arm yourself with all of the tools, information and market knowledge to ensure that you are investing in the right property that will not only continue to pay for itself over the years but also offer you a hefty monthly cash flow that will put money in your pocket. 
 
If you are truly serious about learning to buy profitable apartment building then get started today by enrolling in the “Buy Your First Aparment Building E-Course” 
 
Investing in apartment buildings is a lot easier than you probably think but the most important thing is not to jump into the market blindly.  Enroll Today in my “Buy Your First Apartment Building E-Course” and you will have instant access to all of the information that will allow you to properly analyze a property to ensure that it becomes a cash cow and not a money pit.  Remember, the risk is all mine.  If you don’t find the information or if you simply decide that apartment investing is not for you, then I will happily return your entire tuition, no questions asked.  So get started today and I guarantee you will not regret it.
 
Sincerely,
 
Ted Karsch, Creator of the
Posted by admin : May. 5th 2011
Post in Apartment Building Financing, Apartment Building Investing, Apartment Building Loans, Apartment Building News | No Comments »

Apartment Investing Profitable as Rents Rise

 

Dear Prospective Apartment Investor,
 
 
What I have been telling my students for the past three years is finally being noticed by the main stream media.  Here is a link to an interesting article yesterday by CNN Money: “Renters Beware! Double Digit Rent Increases Coming”
 
Look at the chart below and you can see how now is the time to purchase an apartment building to take advantage of historic moves to the upside in rent prices. 
 
chart_rent_up.top.gif
 
Remember, as an apartment building owner you profit in two ways when rent prices increase.  You will first have more money in your pocket every month because of the increased cash flow created by higher rents.  
 
The second way that rent increases create profit is by appreciation.  Remember, unlike residential real estate, apartment building values are determined by the net operating income whereas residential values are determined exclusively by comparative sales of similiar properties.   
 
With prices for apartment buildings at multi decade lows in many metropolitan areas, any investor with the foresight to invest right now will be riding  the sweet spot for profits and apprecation over the next five years.
 
Right now the ships is leaving the port.  Last year alone the average U.S. apartment vacancy rates dropped to 6.6%  from 8%, according to property-research firm Reis, while rents rose 2.3%.
 
Don’t get left behind.  If you seriously devote yourself to studying my course materials within the timeframe of less than one month you will have all of the skills, tools and knowledge that you will need to begin investing in your own highly profitable apartment building.
 
The time to take action is right now.  Enroll today by visiting Here.
 
My Buy Your First Apartment Building E-Course will show you exactly how to take advantage of the next great investment opportunity.  Enroll in the Buy Your First Apartment Building E-Course right now to learn how to start buying and selling profitable apartment buildings anywhere in the United States.  
  
 
Sincerely,
 
Ted Karsch
Posted by admin : Apr. 29th 2011
Post in Apartment Building Financing, Apartment Building Investing, Apartment Building News | 1 Comment »

Why Buy Apartment Buildings Now?

 
Dear Aspiring Apartment Building Owner,
 
There is a radical paradigm shift taking place within the United States right now and it has the potential to make you very rich if you do the right thing now to properly position yourself. 
 
Here is a direct quote from a shocking article that was published just yesterday at Bloomberg.com, “the magnitude of the housing crash caused permanent changes in the way some people view home ownership,” said Michael Lea, a finance professor at San Diego State University. “Even as the economy improves, there are some who will never buy a home because their confidence in real estate is gone.”
 
 
Meanwhile, home prices have slid another 3.3% in the past year, confirming a double dip in residential real estate prices, home buyers are shunning low prices. 
 
Instead of buying homes many families are choosing to rent! 
 
This whole untapped market of new renters should create a bonanza in the next few years for those investors who have the foresight now to buy an apartment building.  
 
The U.S. home ownership rate dropped to 66.5 percent in the fourth quarter, the lowest in more than a decade.
 
The apartment building investor now stands to see a windfall.  Vacancy rates all over the country are dropping and rents are rising.  The greatest part of this whole situation is the fact that apartment building prices haven’t caught up with the new demand.  There is still time to buy distressed and bank owned apartment buildings and prices that are 30% to 60% below their true market value.
 
The time to start buying apartment buildings is right now.  But, you have to know how to identify a good a opportunity and how to turn away from a money pit.  I strongly urge you to start on the road to apartment building investment success today by enrolling in my “Buy Your First Apartment Building E-Course”
 
Inside my E-Course you will find all of the tools, information, tips and knowledge that you will need to purchase your first profitable apartment building anywhere in the United States or Canada. 
 
Remember,  the risk is all mine.  If you are not completely satisfied then I will return your full tuition and the education is yours, free to keep.  
 
Get started today and Enroll Now
 
Sincerely,
 
{!signature} 
 
 
 
 
Posted by admin : Apr. 29th 2011
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Commercial Loan Modifications and Fannie Mae

Fannie Mae Initiates Commercial Loan Modification Program

Fannie Mae is now offering a new program aimed exclusively at commercial real estate owners who are unable to make their monthly mortgage payments. The new program called the Payment Reduction Plan (PRP) comes as welcome relief to many apartment building, office building and shopping center owners who have seen drastic decreases in vacancies over the past twelve months. These vacancies have seriously impeded commercial property owners’ ability to pay their mortgages. PRP allows commercial owners to negotiate with their loan servicer for up to a 30% reduction on their commercial mortgage payments.

According to the Fannie Mae website the “The PRP provides a borrower with temporary payment relief while the servicer and borrower work together to find the appropriate permanent foreclosure prevention solution. PRP offers an additional foreclosure prevention solution for borrowers who are ineligible for the Home Affordable Modification Program (HAMP).”

Under the PRP monthly commercial loan payments can be reduced up to 30% off of the total principal and interest only. The program is strictly for non owner occupied and investment properties.

The Fannie Mae website explains that “during the maximum six month period of forbearance, the servicer should work with the borrower to identify the feasibility of, and implement, a more permanent foreclosure prevention alternative. The servicer should evaluate and identify a permanent solution during the first three months of the forbearance period and should implement the alternative by the end of the sixth month.”

Posted by admin : Nov. 11th 2009
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Hard Money for Apartment Buildings

Hello Ted,

In your E-course, are there methods of purchasing apartments without credit while using private/hardmoney funds to finance the deal?

Thanks,

Larry

Hello Larry,
The “Buy Your First Apartment Building E-Course” gives you all of the tools, information and knowledge that you need to purchase an apartment building in the United States or Canada. There is a section in the e-course that extensively covers using hard money and private money to buy apartment buildings.

Sincerely,

Ted Karsch

Hi there,
>
>I just wanted to take a minute and share some of the frequently asked
>questions that my inquiring students ask.  Maybe one of them is yours.
>
>Question:
>
>I have looked at the home study courses of real estate gurus like Dave
>Lindahl and Daran Garmin.  These guys are charging over $900.00 for
>their home study courses and around $5,000.00 for seminars.  How is it
>that you are offering similar materials and a better education for only
>$99.95?  What is the catch Ted?
>
>Answer:
>
>There isn’t one.  My educational resources and the software found in my
>e-course give you all of the knowledge and tools to successfully begin
>investing in profitable apartment buildings anywhere in the United
>States.  Those other guys, the real estate investing “gurus” have to
>charge so much more to cover the cost of their marketing.
>
>The real estate gurus also have to spend a lot of their money on web
>designers. I made this website myself. Hey, I know it’s ugly but I
>would rather spend my time improving my e-course. I spend almost
>nothing on marketing.  Most of my students find my e-course by word of
>mouth or from reading one of my articles somewhere.  My e-course is not
>my full time job either.  I do very well for myself with my own
>investments so I don’t have to charge a lot of money.
>
>Question:
>
>Is the information in your e-course up to date?
>
>Answer:
>
>Absolutely.  My e-course is updated with new and relevant information
>every month.  In today’s real estate market this is a necessity.
>
>Question:
>
>Can I make money just by studying your E-Course?
>
>Answer:
>
>No way! Investing in apartment buildings requires a lot of hard work
>and effort. Anybody that tells you that any different is just trying to
>sell you his “guru” system or seminar. My e-course does make the work a
>lot easier and if you follow the principals and systems you should be
>well on your way making successful apartment building investments.
>
>***Visit my website right now so that you can begin your apartment
>building investment education today.
>
>http://clicks.aweber.com/y/ct/?l=I1DT_&m=1mBcA2Mp_8ME9z&b=BKanYRkqAtICb
>KzpKseM2w
>
>
>PS. Here’s a question for you:
>
>Wouldn’t it be great to have steady income coming in every month from a
>strategic apartment building investment?
>
>If you answered yes, then get started today.
>
>The risk is all mine.
>
>If you don’t like the E-Course then simply return it for free and the
>education was free.
Ted Karsch, Creator of the “Buy Your First Apartment Building
>E-Course”

Posted by admin : Nov. 9th 2009
Post in Apartment Building Financing, Apartment Building Investing, Buy Your First Apartment Building E-Course Questions | No Comments »

How to Find a Commercial Loan Modification

How to Pursue a Commercial Loan Modification

A commercial loan modification is when the bank or commercial lender agrees to alter or modify the conditions of your commercial loan to make the monthly payments more affordable. This is done through the lower of the interest rate, extending the life of the loan, lowering the amount of principal owed or temporarily accepting interest-only payments. Commercial loan workouts are designed to be a permanent solution opposed to a temporary fix, only delaying the inevitable. For that reason, in order to be approved for a commercial loan modification, your bank or commercial lender needs to be confidant you will adhere to the new loan agreement.

The best way to convince your bank or commercial lender to agree to a commercial loan workout is to attack the problem right away. As soon as you realize your business is in serious financial trouble, you need to contact a commercial loan modification professional to look over your loan agreement and contact your lender. It is best to pursue a commercial loan modification before you begin missing payments. A bad payment history will not work in your favor when the lender is considering your commercial loan workout. However, unless your business is already foreclosed on, it is not to late to try a commercial loan modification.

Commercial loan modifications take time to negotiate and work out, not to mention taking the time to make sure you qualify for a commercial loan workout. Although it is not impossible, waiting until you are several months behind in payments to pursue a commercial loan modification will make it harder for your commercial loan modification professional to find a resolution you can afford and the lender will agree to.

Posted by admin : Sep. 21st 2009
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Commercial Loan Modification is Altered by New IRS Rules

The IRS has issued a new rule (IRS Revenue Procedure 2009-45 http://www.irs.gov/pub/irs-drop/rp-09-45.pdf) that eases the restrictions on modifications of commercial mortgages that have been packaged into commercial mortgage backed securities.

This action allows borrowers to open discussions with the loan servicer prior to any default in an attempt to work out the loan. Prior to this new rule only a very small number or loans in a servicing pool could be modified and they must already have been in arrears.

Commercial property owners can get a free consultation at: Commercial Loan Modification Experts

Posted by admin : Sep. 21st 2009
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Apartment Building Investing Seminar Q & A

***Below are some questions that Lori McMahon answered from a student who attended last night’s Apartment Building Investing Seminar

Hello Lori,

My name is TA Davis and I was an audience guest on this evening webinar hosted by Ted Karsh from ApartmentBuildingInvestor.com.

First, thank you for sharing your time and expertise on creating Apartment Building Investing Executive Summaries. It was truley very informative!

I am a newbie in commercial investing and see myself really focused on this aspect of the industry. Again, THANK YOU for clearing some of the fog!

Here are the questions that I thought of as I listened this evening:

1. At what point do you begin putting together the Executive Summary? ie before/during/after contract has been submitted?

It’s different every time. Before is fine as long we put that in as the status on the Funding Opportunity Page. Many of clients have wanted to find out if they could get any interest prior to signing the Contract to Purchase. Anytime is good as long as it is directly after you sign the contract because you must understand that in these times, it is taking anywhere from 45 to 90 days for funding…

2. To whom are you giving the Executive Summary? I believe I heard you mention nonconventional lenders.

You can submit the summaries to private investors you network with or funding firms you locate on the internet. If you’d like LJ Commercial Property Services to submit, I would let my partner, J.R. review the property Executive Summary and if he feels we have an investor/firm that would be interested, he would then let you know and we would move forward on your behalf. But, it is important that you, yourself learn to network to get it out yourself in case we don’t have a particular funder/investor for your situation.

3. Do you recommend using a particular software? If so, what is the name?

I don’t use any software creation packages so unfortunately, I cannot help you in this area. Software can’t possibly keep up with the ever-changing market and investors/funding firms criteria can change daily - I’ve seen it - believe me!!

4. Who supplies the information to you about the property?

The client supplies the information regarding the property itself. I put it together in a presentable package. I supply the demographics, property highlights, market highlights and comps. These have to be researched for each and every package I create since those items are in constant change as well.

5. I understood that one does NOT have to be located in the same state as the property to do an Executive Summary. How then are you able to know if the information that is gathered is accurate?

I only work off current market reports and use demographics from several areas as well as my own internet search to be sure all information is current. I don’t copy and paste from one summary to another - I start each one brand new because, it is! The property information is the client’s responsibility to get for me - unit mix, income & expenses, etc.

6. How much time (in general) does it take for a decision to be made once a summary is submitted?

Some LOI’s are received within a few days…others can take a month! It all depends on too many factors so this question is too open-ended for me.

7. Do you shop the summary to more than 1 lender (at the same time/upon rejection) or is this NOT receommended ?

The Executive Summaries that I actually submit on behalf of the client are submitted at approx. 5 to 6 per day until an acceptable LOI is issued or it is determined that funding will have to be found elsewhere.

I hope I am not going too crazy with questions but I am REALLY interested in becoming a SUCCESS story (thru commercial real estate) of overcoming adversities, fears, and making positive change in my life.

Posted by admin : Jul. 31st 2009
Post in Apartment Building Investing, Apartment Building Seminars, Buy Your First Apartment Building E-Course Questions | No Comments »

“Buy Your First Apartment Building E-Course” Review

Hi Ted,

I have actually purchased your e-course and have read it. There is some good informative information in it that will be useful. I am also doing additional reading on apartment building investments and hope to have enough knowledge to be able to purchase a building soon. The challenge is in finding a good investment and being able to come up with the down payment. This is something that I am very serious about and will succeed in, and your course will help in achieving my goals.

Sincerely,
Jag

Hello Jag,

Thank you for your kind words. I am glad that you found my E-Course to be very helpful. Please contact me at anytime if you run into any roadblocks.

Sincerely,
Ted Karsch, Creator the “Buy Your First Apartment Building E-Course”

—–Original Message—–
From: apartmentcourse@aweber.com [mailto:apartmentcourse@aweber.com] On Behalf Of Ted Karsch
Sent: Monday, June 08, 2009 2:29 PM
To: Jag
Subject: I know that my website is ugly…

Hi there,

I noticed that you are reading my mini courses and that you visited my landing page a few times.

Many of the real estate investment “gurus” out there spend a lot of time and MONEY building fancy websites with super graphics.
(One guy even has a video of himself driving a Ferrari.)

I’m not one of those “Gurus”. Frankly, I’m too busy working as a commercial finance consultant and investor to care about making my web pages pretty.
But, I do care about offering the best EDUCATION to every one of my students. That’s why I added these bonuses to the course:

1) The Cash Flow Factory: (a $49.95 value)

– Cash Flow Factory SOFTWARE does all of the math for you
– It figures out Debt Service Coverage Ratio for you
– Automatically computes your net profits for the next FIVE YEARS

2) The Profit Booster: (a $39.95 value)

– User friendly models to raise rents, cut costs and SUPER CHARGE
your Net Income

3) The Money Bag: (a $79.95 value)

– Money is everywhere! You just have to know where to look.
The Money Bag has done the long and painstaking work for you.
Sit back and relax.
– Hard Money, Owner Financing, No Money Down, Bank Loans,
Insurance Company Loans, Cash Back At Closing, Owner Notes
….Plus A Lot More.

My E-Course is constantly being improved. Real estate markets are changing quickly and the same methods that worked last year probably won’t have the same success this year.

I don’t believe in any “magic” systems or formulas. My E-Course doesn’t teach them either. Mostly because they don’t work. Over time I have figured out that there really is only one formula for success in any investment
undertaking:

Education + Effort = Success.

My E-Course provides you with all of the information and education that you will ever need to locate, buy and manage highly profitable and successful apartment building investments. The effort part is up to you.

The Chinese have a saying; “the journey of a thousand miles begins with the first step”. I invite you to take a journey with me. One that begins with a first class education in apartment building investments and ends with a profitable real estate portfolio.

I understand that the freedom of monthly cash flow may seem like an unattainable goal in your life right now but my E-Course will show you, every step of the way, how to get there.

So, put your doubts behind you. Don’t judge my E-Course by its ugly cover.
Once inside you may discover yourself on a journey that changes your life.

Begin here:
http://www.ApartmentBuildingInvestor.com/ecourse.html

As always, if you decide it’s not for you, I will refund all of your money and the education was free.

Sincerely,

Ted Karsch

Posted by admin : Jun. 9th 2009
Post in Apartment Building Investing, Buy Your First Apartment Building E-Course Reviews | No Comments »

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