2008 projections call for roughly 2 MILLION people to complete the foreclosure process next year. That is 2 Million people who NEED TO LIVE SOMEWHERE. And not everyone will move in with mom and dad. They will move to apartments and in so doing create one of the greatest bull runs in apartment lending ever!
Most apartment complexes across the country run 86-95% occupied. And even at that, they are profitable. But rents have not been raised much at all because of lack of demand. Increasingly easier lending standards over the last 10 years led to constant turnover as people moved out of apartments into their own homes. But those standards have changed. So there will be LESS people moving out of apartments because they can't qualify for a home and 2 Million new people coming in. This will drive most apartments to 100% occupancy. When that happens, there are 3 valuable benefits to the apartment complex owner:
- Profits go up (the mortgage payment, taxes, etc. don't change when you go from 90% occupied to 100% occupied) - that extra income goes right to the bottom line.
- Values go up since profitability effects the value of commercial properties
- Most importantly, rents can begin to be raised leaving ever increasing profits.
SO HOW CAN YOU TAP THIS CRAZE?
You can BUY - Did you know that you can buy an apartment complex with almost no income verification? With some creative financing and a willing seller; you can do it with no money down as well!
You can Help Others Buy - Create an investment club or pool with the guidance of Loan Source Financial.
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