Are you investing in Real Estate correctly?
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So what's the right way to invest in real estate? Here's what we've all been taught, buy a single-family home, rent it out and then repeat, do it all over again. But here's the issue with that, 1. it's capital intensive, 2. It’s tenant intensive 3. You have to have hundreds of these to actually do well. Here's the craziest part, all the single-family homes, all of those homes, trade at based on the comps or the comparable market values overall and once I realized that, I stopped investing in single family homes and I realized that I need to not just invest in something that has comps but how I can operate them, which is why I started investing in multifamily. So when you buy a multifamily apartment complex, it doesn't trade on what other multifamily complex trades off, it trades on the value of that complex and how well you operate it based on its net income. I realized that when I buy a building, I actually buy a business. And when you could convert buying an asset to buying a business, it doesn't trade on comps anymore and trades on the value of how you operate it because you have completely changed the game of real estate. So now you may start off buying a single home. That's totally cool. But remember, the massive scale happens when you can buy real estate combined with the business. Multifamily, It's really good idea.
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