It is scary for people to invest in Multi units. People are so scared and misinformed, and their fear is the reason that they stay stuck in RAT RACE all their lives instead of building something their own.
It is so sad to see people living in poor states whole life and not using their full potential given by GOD. We see people living in DEBT their entire lifetime, their struggle is real, and it also ruins their relationship with closed ones.
Money is the biggest culprit of couple’s fights and divorces. It is sad to see couples fight for money instead of working together to build wealth for themselves and generations to come.
Retirement is real and people will get old, there is no way around this. No one can save you if you don’t have plans for your own retirement. If you do not think of yourself, no one else will.
People living in developing countries think their kids will take care of them in their retirement and in developed countries, people rely on government social support. Why to look at others at the time when you need the most help? Why not plan something now and build it overtime for you. Your family will be proud of you instead of scraping for pennies at your funeral.
Investing in MULTI UNITs is one of the easiest, profitable, and consistent ways of creating wealth. It is a known fact that a lot of rich people have invested largely into real estate and rental properties.
I have invested in RENTAL PROPERTEIS for just last 6 years and I can already call myself a MILLIONAIRE. It was not possible without my investment in Multi Units. I have tried other investments like Index Funds and Mutual Funds over time. It is a very good idea to invest in Index funds but may take 20-30 years for my stock portfolio to hit $1M.
LACK OF KNOWLEDGE\INFORMATION
It seems like everyone knows or heard about multi units, so what is new about them that people need to learn.
You will be very surprised to know how ill-informed people can be?
When I look back at the time I started investing, I had no idea how Multi unit’s investment work, how mortgage\financing work and I was not a handyman.
Every little missing piece of information scares you and it makes people procrastinate for years and eventually they quit their dream.
I have seen people putting so much money into their homes for down payments and renovations thinking its best investment of their life. These people are wasting their hard-earned cash when they can just put 5-20% down and invest rest in other real estate to generate income. This is just one example, there can be many different examples about people not investing even when they have all the means to do so.
Money cannot buy happiness, but it can buy Multi units, retirement and a prosperous lifestyle.
There are many books and courses available about buying real estate without using your own money. I have no idea how much true that is; I have not seen anyone buying real estate without their own cash yet. It may be possible to do without your own money someday, but that will require building a reputation first as an investor by showing results otherwise even our own parents don’t trust us with cash.
Most people get stuck at this point; they have big ideas but no cash to start. Start dreaming big and start saving big to achieve them. All the investments start with saving.
You cannot invest if you have no means to save and some people find it difficult to save. It is their lifestyle choices; they want to have fun now instead of chasing dreams.
Good Credit history is the sign of credibility,
How lenders and others will trust if someone cannot manage their own funds to maintain good credit? You probably cannot even rent an apartment without good credit, let alone buying multi units.
If I had to make a choice between paying $1,000 for extra charges vs protecting my credit, I will pay off $1,000 without a blink to protect my credit. I have seen some people have bad credit because they are fighting with telecom company for $100-$200 extra charges and they ruin your credit if you do not pay.
I will still fight but I will pay first and keep fighting to get it back, so it will not hurt my credit.
Have you ever worked with contractors to renovate your place? It’s probably one of the most difficult things to do, they don’t have a very good reputation in general. If you ever find a good one, make sure to keep him.
It is not comfortable to work with contractors, mentally as well as financially. You may start with the budget of $20K and may end up spending $50k.
Who wants to have so much stress dealing with Contractors? Believe me, it is difficult, but it is a small headache for the wealth that can be generated through multi units.
RENOVATIONS AND MAINTENANCE COST
Is there any way around Renovations and Maintenance cost? Of course not.
In fact, skipping regular Maintenance costs much more in the long run. Most of the properties available in the Montreal area are older than 50 years and regular Maintenance is a necessity.
You may need to upgrade Roof, plumbing, Windows after some duration, normally after 10-20 years and by that time you will be a millionaire. All these things may cost you 50-100K over time but look at the upside of how much wealth is created during that time. Property value and Rents have probably already doubled in 20-25 years which makes you a wealthy person.
DEALING WITH TENANTS
Now, we are talking about the real reason and probably the biggest of all. Who likes to deal with people?
You can fix a leaky faucet, broken door or blocked toilet in a matter of minutes or hours but it’s impossible to fix or change people.
One of the most difficult problems which I have dealt with, are people and especially when two tenants live next to each other and do not go along.
Is there an easy solution for this? Probably Not.
But should this stop you from buying multi units, absolutely not.
There are always some solutions, it may cost you little if you have to let go one of the tenants but losing 1-2 months rent is nothing compared to the amount of wealth being built through rental properties.
What if you cannot rent your apartment? What if it stays empty for months?
If you are in the business of renting, you are supposed to have empty apartments at some point. I have properties located at amazing locations but still sometimes, they can remain empty for 1-2 months before finding a good tenant.
It is good to recognize this problem and invest in multi units instead of buying a house to rent.
Let’s say, you have 4 units to rent for $4,000 vs a single-family house to rent at the same amount.
If you have just 1-2 apartments empty out of 4, you still have $2,000 – $3,000 per month to cover the cost, instead of not having the whole $4,000 if your home is empty.
It is good to have more people to share the risk instead of one.
Currently, I own 25 units and few units empty won’t impact me so much, it is all about reducing your risk.
I have no idea how many times I have heard this?
“I want to invest in multi units, but my spouse doesn’t approve\like\want it?”
You and your spouse need to be on the same page if you ever want to invest in multi-units because it’s long-term investment.
Buying multi-units is more like marriage with one big difference, you will most likely be going to make money out of it.
It is important to sit with your partner and set up goals and show them how multi-units can provide you amazing wealth over time.
TOO OLD\TOO LATE
In their 20’s, we are too young and nothing to worry about.
In their 30’s, we are too busy with finding love and starting family and taking care of kids
In their 40’s and 50’s, busy buying houses and too old to start investing.
Do you see what is happening? There is always a reason for not starting something which could have been already generating income instead of worrying about expenses.
It’s never too late, Colonel Sanders started KFC in his 60’s and built one of the best brands for fried chicken. There is still no competition in its category.
NOT A HANDYMAN
At the time, I bought my first 8 units, I did not own any drill or hammer. Now, you can imagine how much I knew about fixing things.
It is not what you do not know, it is what you can learn and your attitude towards problems in life.
Trust me, you will be a handyman and fixing things you could not ever imagine within 2 years. It is so easy these days with YouTube, you can learn anything you want, you just need to have the motivation to learn.
Try to do a little experiment, tell few people that you are planning to buy property with a rental unit. Believe me, people will start telling you horror stories which they heard about tenants.
How tenants will keep calling you at 2-3 am, in fact that has never happened to me in 6 years.
How tenants ruined somebody’s apartment and how it is not worth it. How tenants stopped paying rent.
There may be endless stories, and I am sure some of the things really happened. It does not matter what you do, there are horror stories in every field.
Our society is built based on the stories told by our ancestors, listening to some of this crap makes you believe them, and you will think about it every time you start working on your investment project. This will stop you from investing and after some time you may start thinking that it’s too late to start.
Should you listen to every story and stop investing? Absolutely NOT.
You should read good motivational books on real estate investment to find out how this investment can change your life forever.
Who wants to wait 20-25 years to create wealth to enjoy it later? No one.
People want it now and they are looking for quick rich schemes. This is how they fall in traps of crooks and lose their hard-earned money instead of making it.
It takes years to grow Apple Tree and you will not have any Apples to eat while it’s growing. There will be a lot of apples once the tree is fully grown, probably more than you may need. Investments work on the same concept, you must wait, put water, invest time and money to grow your investment tree. Once done correctly, over time you will enjoy the results.
Take an example of Amazon, it was started around 1995 and it was not till 2013-2015 when this company really picked up and became one of the biggest companies in the world. Everything takes time and it needs a lot of focus and patience to stay on course.
NOT BEST TIME TO INVEST
“You got lucky, you invested on the right time, now it is too late and it’s not the best time to invest.”
Have you said this statement or heard it?
You know? It is always the best time to invest if you keep investing consistently regardless how things are behaving. This way you take advantage of good and bad times. Time is precious and it is not worth waiting on the sidelines for a good time to invest. Losing 4-5 years while waiting is a big loss in the long run.
It is human nature to know everything before doing anything especially if it’s related to money.
Most of the people get stuck at initial phase where they try to find out everything, if their investment would work out or not.
Let us take any product on Amazon and try to check out the reviews, nothing is more confusing than those reviews. We may find something worked for 4 people and did not work for another 2. So, what does that mean, does this product work or not?
Some people are negative by nature and you can give them anything and they can find 10 wrong things about that.
Sometimes, when people do analysis, they also come across some negative information on the internet from someone they know. You can’t find any investment ranked 100% positive by everyone, so there is nothing wrong and nothing right in this world.
What is important, you need to understand some basic concepts and try to make right out of it.
Few things may fail; that is called experience and you may find a path to success from your failure.
SMALL GOALS AND SHORT-TERM THINKING
What do I mean with small goals? Getting a decent job, buying a house or car are very small goals to start with and people tend to get stuck with them all their lives. They fall in Rat race traps and remain stuck with middle class status and worry about their retirement.
Why not to think about setting up a business, buying multi-unit properties and have other people pay your mortgage and let you build wealth.
Do you know that the majority of the people who buy rental properties never move to a second or third property? It’s because of their short-term thinking, they think about small problems and never have enough confidence to plan big.
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