The  5 Money Making Advantages Of Multi-Unit Investing

Join us for Dave Lindahl’s Webinar Training – Its FREE on Tuesday, March 9th at 9PM EST

Click here to join:  www.investingwiththestars.net/davelindahlinterview

Having rehabbed over 800 properties in the last seven years and collected over 7,000 apartment units I’m often asked, how can I become wealthier faster investing in real estate?  While most investors concentrate on some aspect of single family houses, I was always interested in multi-units (apartments) first, and then single family homes as a means of getting more multi-units .

From the very beginning of my investing in real estate, I liked the idea that a group of people (the tenants in a building) would get together and pool their money to pay down the mortgage on a property, and I liked the idea that they would also pool their money together to pay for all of the maintenance work for a building.

I especially liked the idea that they would give an owner so much money that the owner would have a bunch of money left over at the end of every month that could be used to either re-invest, save or to go out and have a good time with.

Essentially, I like the idea that other people were willing to help make me wealthy. I liked it even more when I started using management companies to manage my properties and no longer had to have contact with my tenants.

I soon came to realize that I could also wholesale, retail, pre-foreclosure, rehab, subject to and lease option apartment houses as well.

I also realized that there were certain advantages that investing in multi-units buildings had over single families.

1) The first was cash flow. Cash flow on a multi-family is always greater than that of a single family. Simply because you have more rents coming in.

The more units you have under one roof, the less risk you have. If you have a single family house and you lose your tenant, you’ve lost 100% of your income. In some instances, this could be your entire profit for the year. If you had a three family and lost a tenant, you still have two rent coming in to pay your expenses.

2) Economies of scale are in mulit-unit buildings. If you have six single family houses opposed to one six family, you have six roofs to be replaced or repaired, six lawns to be maintain, six tenants spread out through out your city or town.

In your six family you have one roof, one lawn and your tenants are centrally located. Economies of scale are in your favor.

3) There’s a lot less competition than there are in single family houses. Why? Because no one is out there teaching how to do it and all the single family guru’s make flipping single family houses sound as easy as chewing gum in the dark. The smart investors put multi-units in their portfolios along with single family houses.

4) Because of the bigger cash flows, you can afford to hire management companies to manage your tenants, thus eliminating that hassle while you go out and do what you do best (or should do best), find and finance them.

5) Your pay days are a lot bigger when you finally sell your property. This is because an apartment complex cost more than single family homes, because of this they obtain a greater dollar amount of appreciation. For example, a $100,000 single family house will in a market that appreciates 10% will be worth $110,000 while a three family house worth $300,000 in the same market (10% appreciation) will increase to $330,000. That’s $20,000 more money in your pocket!

You’ve know a few people who have made a lot of money flipping single family houses, but if you think of the all the people you know who have become extremely wealthy through real estate, you’ll realize that they did it through owning multi-units  (apartments).

These are the five biggest advantages to investing in multi-units, there are many, many more. If you are interested in creating more wealth at a faster rate, adding multi-unit to your portfolio is the way to do it!

Sign up at www.investingwiththestars.net/davelindahlinterview

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A few days ago, I sent you an invitation to a very special webinar that we are hosting on Tuesday, March 9^th at 9PM Est and 6PM Pst.

It’s about how to add an extremely profitable tool to your real estate investing arsenal:  Apartments.

We’ve found the most qualified person in America to talk to us about how to make apartment-sized profits, without dealing with tenants at all.  His name is Dave Lindahl. He currently has over 7,020 tenants—that means he cashes 6,020 checks a month—yet deals with zero tenants!

By the way, he owns both small and large apartments, in both tough and OK neighborhoods.

Dave’s agreed to do this special webinar for my Members only. In this incredible webinar Dave is going to break down the current Real Estate Market. You will hear all about the tremendous opportunities that we have in our own backyard.   Tuesday night 9PM, 6PM PST!

To register for this special webinar Click on this link>  https://www2.gotomeeting.com/register/455528250

Even if you are already making money in single-family homes, you should be on this call. That’s because the techniques Dave will share can also help you in your lease option business, when you’re renting homes to people.

Reserve your spot on as lines are filling up already!

=è https://www2.gotomeeting.com/register/455528250\

P.S.  Here is the Replay link so many of you have been asking for

On the Training Alfred Alonso did on Finding REOs.  Enjoy!

=è http://www.investingwiththestars.net/alfred/replay/

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Multi-Family investing is the way to go now!  Join us at www.investingwiththestars.net/davelindahlinterview

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I don’t know about you, but I am finding it really difficult to get money for my deals. I can find lots of real estate deals now, but I cannot get the money from the banks!!! This week’s call is all about “Getting The Money” with Alan Cowgill.

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Learn How To Get An Endless Streams of Money

CLICK BELOW NOW <===>www.investingwiththestars.net/replay/alan

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Get ready for Alan to teach you:

How to attract people with money …

How to win their confidence …

And how to then turn them into private lenders in no time!

Plus, much more

Alan will tell us how he buys several houses per month AND HAS NO MORTGAGE!!! Do you think not having a mortgage might help???

I speak to investors all the time and they tell me that funding deals in today’s market is one of their biggest challenges. So tune in on Tuesday’s  call with Alan and let’s learn how we can get the Money!!! (and stay within the SEC rules!!!)

Register now to reserve your seat on Thursday at 9PM EST

As you know, Space is limited.

Reserve your Webinar seat now at:

https://www2.gotomeeting.com/register/647628034

Nancy Geils

800-804-5390

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A limited partnership is a partnership that has at least one limited partner and one general partner. Most states require the filing of a certificate with the state in order to be recognized as a limited partnership.

The limited partners generally have no liability beyond their contribution to the partnership. If the limited partnership business fails, the creditor cannot go after the limited partners for debts (there are a few minor exceptions to this rule that are not difficult to avoid). Furthermore, limited partners are not personally liable for wrongful acts committed by the other partners. In exchange for this limited liability, the limited partners give up their right to participate in the control and management of the partnership.

The general partners run the management of the partnership. The general partners control the cash distributions to the partners. The general partners also have unlimited liability, as in a general partnership. Creditors of the partnership can look to the general partners’ personal assets if the limited partnership’s assets are insufficient. Furthermore, the general partners are liable to third parties for wrongful conduct within the partnership business (e.g., a “slip and fall lawsuit”). Thus, a corporation is usually better for pure liability protection for its owners.

The limited partnership does not pay taxes as an “entity.” It files an informational tax return to the IRS. It issues a form K-1 to the partners who include the partnership income or loss on their personal tax returns. The partners must pay income tax on all gains whether or not the profit is distributed.

Creditors of individual partners cannot take a partner’s place in the partnership. A creditor may garnish the partner’s share of income (called a “charging order”), but has no right to participate in the management or utilize partnership property. Thus, if a limited partner’s income is garnished by a creditor, the general partner (who should be under the limited partner’s control) can frustrate the creditor by not distributing income to the partners. Since a partner is required to pay taxes on his share of the income whether or not the income is distributed, guess who gets the tax bill? You guessed it, the creditor! If your assets are held in a limited partnership, they are virtually judgment-proof!

The Family Limited Partnership
Let’s look at a variation known as a “family” limited partnership. Suppose that you and your spouse create a limited partnership to hold your family’s liquid assets. Your limited partnership contributions are all of your stocks, cash, CD’s and mutual funds totaling $300,000. Your partnership agreement could state that your spouse will act as general partner with a 2% share (the size of the general partnership share does not affect the general partner’s power to manage the partnership’s affairs). You agree in writing that your contributions constitute a 98% limited partnership interest.

The partnership agreement could further state that the limited partnership shall have the right to buy out the general partner for his share of the partnership and appoint a new general partner to replace her (the “you” in this example is the husband; we are making the wife general partner because we assume that husband’s risk of getting sued is higher; if the opposite were true, then we would arrange the partnership accordingly).

Let’s say that you are sued and a creditor obtains a $50,000 judgment against your name. The creditor can attach your limited partnership interest but only to the extent of your income as a limited partner (called a “charging order”). The creditor who attaches a limited partnership interest cannot participate in the management of the partnership, and thus cannot force the general partner, your spouse, to distribute income. As general partner, your spouse stops paying the limited partners’ distributions, because in her discretion the limited partnership would be better served to reinvest the capital.

One year later, the creditor still has a $50,000 unsatisfied judgment. Just to top it off, the partnership sends the creditor a form “K-1″ for the creditor’s share of your “phantom” income (In our example, the partnership assets are worth $300,000. At a 10% annual return, your share of income would be approximately $30,000 – the creditor would have to pay income taxes in the ballpark of $10,000! If the creditor does not pay the tax due on your undistributed share of income, the IRS may come after the creditor!). You will be in a strong position to force your creditor to settle his claim for a fraction of its value.

Let’s say a creditor sues your spouse and tries to attack your spouse’s general partnership interest. At that point, the partnership exercises its power under the partnership agreement to buy out her general partnership interest in the amount of $2,000 or 2%. The partnership then finds a new general partner. With proper planning, this may not be considered a “fraudulent” conveyance because the general partner received full compensation for her partnership share.

As you can see, the limited partnership is one of the few entities which affords control over your money, yet still provides you with asset protection.

“Family” LLC’s – To Good to be True?
Another similar tool for protecting your wealth is the LLC or “Limited Liability Company.” An LLC is like a cross between a corporation and a limited partnership. All of its partners (called “members”) have limited liability and all of its members can participate in the management of the LLC without suffering any liability.

Any assets you hold in an LLC are protected from creditors in the same way your assets are protecting in a limited partnership (i.e., the creditor’s remedy is limited to a “charging order”). In addition, since all members are shielded from liability, an LLC may be an excellent device for holding investment real estate – the members are protected from tenant lawsuits and the equity of the members is protected from other creditors.

Learn more from Darius Bazarandeh, Attorney and Real Estate Investor at: www.investingwiththestars.net/assetprotection

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Here’s another short tip in my success series. I have always said that marketing is the cornerstone of your business. If there is one place that you really want to place your best efforts, it’s in your marketing. But the question I hear most often from my students is, “How do I write great ad copy?”

Writing great copy is a state of mind. It’s really just about you talking to your potential sellers about why they should contact you to buy their house. No one knows you like you know yourself. And no one can communicate who you are and what you have to offer better than you. It is best, therefore, if you write the ads yourself so the true you comes out – the one that the customers are going to meet in person when they call. Here are some tips that will help:

1. Determine what type of customer you’re trying to attract. What is their situation? What are their immediate wants (remember we always seek out what we want, not necessarily what we need? Put yourself in their shoes. What are they thinking?

2. Write down who you are. Why should someone call you? Are you a friendly person? Do you focus on service? Are you easy to talk to? Do you have a lot of experience?

3. Have a USP – Unique Selling Proposition. What makes you better than all of the rest? It can be that all your phone calls are answered by a real person. Or that you will always make an offer within 24 hours. Whatever it is that you do that makes you unique to the competition.

4. Compare the two lists and the USP. Write down some phrases that match what you have to offer with what they want. For instance, they’re intimidated to call and talk to anyone about their situation. They’re afraid of being judged. You feel that you are a nice person who is easy to talk to. A phrase you might use is: “If you’re looking for a down-to-earth person who will take the time to make you the best offer on your house, then call me now at _______.”

5. Since composing the copy is difficult for most people, consider just talking it out into a tape recorder. Just talk to your customers in everyday English. Tell them what you can do for them. Then re-play your recording and write it down.

6. After that, put it away. Come back a day or two later, and read what you wrote, and make revisions that make it a stronger message. You may want to repeat this step a few times.

7. Be confident and proud of what you have to offer, but don’t let it become cocky, and do not over promise. It is much better to under promise and over deliver.

8. Be excited when you record your message, and allow that excitement to come through in the writing. You want your target customers to feel that excitement, and know that you are the person to call.

9. Test. Test. Test. Don’t feel that you have to get your copy perfect before you can send it out. Test it. See what kind of results you get. Then make improvements, and test again. Keep which ever version pulled the best results. Then test again with a new message, always keeping the best one as your control piece.

If you feel that your advertising is not pulling the number of leads it should, you may have one of the following trouble spots with your marketing. Critique your marketing and see if any of these apply. Or ask someone you trust and respect to review your marketing and provide their feedback.

1. You are not working in a good farm area for your service.

2. Your message is not clear.

3. Your headline does not grab their attention.

4. You are not building credibility & rapport with the readers – Do you have testimonials?

5. You have not clearly communicated the WIIFM – What’s In It For Me.

6. You have not made it easy for them to see your phone number to call.

7. You do not have a live person answering the phone and you are losing lead calls – most will not leave a message.

8. You have not differentiated yourself from the competition.

The key is just get started. The hardest word is the first one, after that, each one is much easier. Just follow these steps and you’ll write some killer copy.

For more information like this sign up for our free trainings at www.investingwiththestars.net/season3

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