While Typhoon Ompong was raging in the North, I spoke to more than 200 people who braved the weather and attended the Real Estate Investing Summit held at SMX Aura.
I almost did not make it.
I woke up suddenly to strong rainfall at around 4am in the morning. I checked the Marikina River level and it was still at 13.4 meters.
It would be at Alert Level 1 when it reaches 15 meters.
When you live in Marikina, you always check the alert levels during strong rains unless you live on higher ground.
I seriously considered not going but I texted the organizer and they said the event will push through. So I manned up and texted my co-speaker to confirm that we are speaking.
Good thing we did.
More than 200 people braved the bad weather to attend the event. The ticket price to the event is Php5,000.
You don’t have to pay that amount to get the same message I gave them.
You will get it for free because you read my posts.
The only catch is my message will be divided into 4 posts. Otherwise, this going to be a very long post.
It starts off with 2 questions.
Question #1. Is it possible to grow 6M to 20M in less than 1 year in Real Estate Investing?
It’s quite hard to imagine how that could happen. Usually, when we talk about real estate, the value appreciates slowly over time like 5 to 10% per year.
Not 233% in one year.
If this was stocks, forex or bit coin then probably yes. But real estate?!
It’s perfectly understandable if you say no. Let’s get to the next question.
Question #2. Is it possible to get 5x to 10x more returns in real estate investing?
If you own any real estate, what’s your ROI right now? 2%, 4%, 8% or 10%?
A few months ago, someone approached me about her company’s investment options.
They we’re studying two warehouses and one of them was selling for Php100M. The rental income was Php400,000 per month.
That’s a 4.8% return.
If you bought a 1-bedroom condo now in BGC, you’d have to pay 6M and you could only rent it out for 25k to 30k per month. That’s a 5-6% gross return.
So cash-on-cash returns in real estate today are quite low.
But what would it be like if you got 25% to 50% gross cash-on-cash return?
Could your money grow faster?
Those returns are almost unheard of in real estate but let me show how that’s possible in this blog post series.
Let’s be clear first.
What you’re about to read does not apply to all kinds of real estate.
It doesn’t apply to condos, houses, or vacant lots.
What you’ll be reading is all about apartments.
Specifically, it’s about building massive, automatic income from multi-unit apartments.
Why multi-unit apartments?
There are 6 reasons.
#1. Big Cashflow.
Because you’re renting out more units, you will get more cashflow.
Imagine owning a 50 unit apartment.
Even if you just charge a rent of 5,000 per month, that amounts to 250,000 per month.
And you can do that for only 6M.
I’ll show you in this series.
#2. Economies of Scale.
Because you have multiple units, you can buy materials in bulk and thus get wholesale or bulk pricing.
This brings down your expenses and allows you to increase your returns per unit.
Not only that, having many units allows you to use #3.
Just like any kind of real estate, you can leverage Other People’s Money like the bank’s money to buy and renovate these apartment buildings.
Not only that, you can also leverage Other People’s Expertise and Other People’s Time to build and run the apartment for you.
You can hire a full-time property manager to look after the property. You can’t do that with single-unit because the cashflow is not big enough.
Next one is …
#4. Massive Capital Gain.
When you are able to turn around an abandoned apartment building into a fully-occupied rental business, your gains through capital appreciation are going to shoot sky-high.
I’m talking 100%, 200% and even 300%.
That’s because the value of an apartment building is tied to it’s cashflow.
The bigger the cashflow, the higher the value.
Hence the massive capital gain.
#5. Lower Vacancy Risk
When a single-unit is vacant, you are 100% vacant.
You get no income.
But with a multi-unit apartment, if one is vacant, you still have 20, 30, 40 or more units making money for you.
You can easily kick out a tenant and not be worried about the income.
That’s why I believe, a multi-unit apartment is one of the best retirement options for anyone who wants to retire rich.
#6. Community Transformation
When you renovate an old abandoned building, you convert an eyesore into a treasure.
You eliminate the trash site, the haunted house or the drug den.
You make the community better.
By adding 50 new families to a community, you’re bringing business to the local stores and making the neighborhood more lively.
So these are the 6 big reasons why everyone should invest in Multi-Unit Apartments.
How about you? Would you like to invest in apartments? Why? Let me know by replying in the comments.
Now, it’s not all good in apartment investing..
If you are not careful, you could lose the millions that you invest in an apartment.
In my next post, you will see the common mistakes that apartment investors make.
May Your Deals Push Through,
P.S. Why would you consider investing in Apartments? What’s your end-goal? Let me know by replying in the comments below.