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Expert’s Top 5 Steps to Becoming a Self-Made Real Estate Millionaire

Business Insider recently featured an article by self-made real estate magnate and contributor Grant Cardone, in which Cardone says, “buying a house is for suckers.” He speaks from experience, having purchased more than 4,000 apartment units since he began.

Here are a few quick take-aways from Cardone’s article for real estate investors who want to maximize profit and are ready to take the plunge into multifamily investing:

  1. Avoid single-family homes and condos. They’re easier to finance and require less down payment, but they also don’t produce enough cash flow to fatten your portfolio. And if your renter leaves you in a lurch? You make no money.
  2. Don’t buy fewer than 16 units. That’s a smallish complex that still gives you ample cushion to deal with vacancies.
  3. Look for properties with Baby Boomer appeal. Existing apartment communities can easily be converted to senior living facilities that don’t have that “nursing home” feel. Keep amenities reasonable, neighborhoods walkable, and finishes durable and homey.
  4. Maximize your tax benefits with excellent advisors. Don’t skimp when you’re dealing with big investments on multifamily properties. They offer an opportunity to hedge against inflation, and multiple tax benefits you don’t want to miss out on.
  5. Buy multifamily units at a single address. Don’t split your efforts over different neighborhoods and markets. Brand your property as quality, luxury, affordable—whatever your brand—and keep it consistent over all messaging channels.

No matter what your approach to real estate investing, it’s important to remember that local markets dictate which ones will work for you. Due diligence is necessary with any investment, and the more units you’re buying at once, the more steps you need to cover to make sure your dollars are doing their best work for your bottom line.

Call Class A Management for assistance. We can be reached at 817-284-1411 or by email to info@classamanagement.com.