G-BLG36R6X13
Real Estate

How To Invest in Apartment Complexes by Steven Taylor

How To Invest in Apartment Complexes by Steven Taylor

Steven Taylor LA Landlord and Real Estate Agent Extraordinaire

Steven Taylor is one of those names that stands out above most others in the Los Angeles Real Estate scene. An extraordinarily talented and accomplished real estate agent and landlord, Steven has a number of impressive accomplishments in his career that he can proudly boast about.

As the founder of both Ness Holdings and Taylor Equities, Steven has made over $500 million in business transactions that range from acquisitions and dispositions to flipping houses and business transactions from his two companies.

It’s pretty reasonable to assume that the man has accumulated a treasure trove of information about the business of real estate over the years. As a matter of fact, there’s no need to assume — he regularly puts this knowledge into writing on his website, steventaylorlandlord.com.

One valuable skill he openly teaches visitors to his website is how to invest in apartment complexes.

Apartment Complex Investing: Advice From An Expert

In his advice to prospective investors who seek counsel from Steven Taylor and his website, he says that there are 3 different, reliable ways of investing in apartment complexes, which we’ll cover below.

Independent Purchases

This first method of investing is the most simple — you buy the complex yourself. While simple, it is perhaps the most expensive option, requiring immense upfront capital. Ironically, Steven learned this lesson the hard way after being misinformed by a family member that real estate investment requires no upfront capital.

There are ways in which you could substantially reduce upfront financial requirements before investing. One such example is to take out a loan for an investment. This will require you to find ways to handle the property, including property management and other important decision that will need to be made.

So, this method of investment will demand the most out of you of all 4 methods. You and you alone are responsible for the outcome of this investment and all its little details. You need a clear picture of the budget that you need for the investment and to save the proper amount of funds for it.

In addition, you’ll want to research the market and investigate different deals to secure the most suitable investment environment for yourself. Buying a property on your own requires a lot more work, and is really only recommended for experienced investors. However, there are several benefits, including the ability to choose your investment strategy, how you run your property, and when you can sell it

Buy it with a partner

Should you choose to buy an apartment complex with a partner, you will be able to learn the business of investing easier and be able to work out and develop your long-term strategies easier and with greater support than on your own.

This is a great strategy for beginner investors who don’t have all the funds they need or are lacking experience and knowledge. Partnering up with a more experienced and proven investor is a tried and true strategy.

There are some potential downsides, however. You don’t of course, get to make decisions on your own. You will need to trust your business partner, whoever they may be. You should really only make this decision with a business partner you really trust, and are on the same page in terms of goals, vision, strategy, and thinking.

Purchase By Syndication

This kind of purchase involves a pool of group funds that are used to purchase a property, which is then run by one person (the syndicator). This situation is similar to a joint purchase by a pair of partners, but larger in scope.

In this situation, as an investor, you are also known as a limited partner and become a passive investor. As a limited partner, you purchase a small stake of the property and collect a small share of the profit when the property is sold.

This strategy is a reliable and profitable way to invest in an apartment complex or series of complexes without a large time investment or extensive involvement.

Conclusion

When considering an investment, don’t feel limited to just these three strategies. There are many other ways to invest, bet it in apartment complexes or other properties.

As with any task or endeavor, the more knowledge, education, and experience you have, the better off you’ll be. And if you don’t have much of these, consulting with experts like Steven Taylor will help get you started on the right path.

Post Comment