All Forum Posts by: Marcella Hoard

The Washington Post recently published an article outlining four reasons why single family home investments are better than apartment complexes. They are summarized below as more favorable financing, easier to sell, more properties available, and a safer investment.

1. More favorable financing - There are more favorable financing options available for a single-family house than an apartment building. You can also typically get lower down payments. 

2. Easier to sell - If you have a portfolio of single-family homes, you can sell them as a package or individually. You can market them to commercial investors or retail buyers. 

3. More properties to choose from - There are more single-family houses than apartment buildings and with a little work you can find great bargains.

4. Safer investing - In order to build wealth within your means, you need some wiggle room in the property. You’re always in a tenuous spot when there is no daylight between what you’ve put into a property and what you can sell it for.
Which do you consider to be a safer investment - SFH investing or multi-family investing?

Why single-family houses make better investments than apartment buildings - The Washington Post

@Jeffrey Donis I'm glad that we can agree on this Jefferey. This field is not for the weary but there is so much to learn and can be very rewarding!

Good afternoon!

I would like to share an article outlining how to become a successful real estate investor. The article was published by The Washington Post and it highlights three important investor qualities which I summarized as thick skin, strong stomach, and knowledge. 

1.Thick Skin: Beginning a real estate investing career will come with some stress and challenges that include securing reputable general contractors. It's important to do thorough research and lean on those who are more knowledgeable in the field. 

2.Strong Stomach: Many individuals who jump into investing end up sinking before they can learn to swim. Getting bad deals is an inevitable part of building your stamina as an investor. This is a field that requires long term vision. If you stick with it, financial losses can almost always be recovered over time.

3.Knowledge: There are several key things a real estate investor must know in order to attain successful investments over time. These include how to identify a good deal, real estate finance, marketing, valuation and private financing. The key is to educate yourself.

What you need to be a successful real estate investor - The Washington Post

@Robert Carter I'm glad this helped!

@Mike Dymski If you are getting less income and your costs are going up, how does that help your profitability in that situation?

@Jessica Denny You can find a great deal anywhere. When it's a rural location, the valuations tend to vary more than in an urban location but it really comes down to if the numbers work. I will be happy to take a look at the numbers in that area with you if you'd like.

@JD Martin Thanks for the reply! This further speaks to the importance of establishing good relationships. One of the things that I tell my clients is that there are many ways to get ideas like articles and Google searches. However, you stand a better chance to be successful if you have a good birddog who has been in that area for some time or a good agent who knows the market well. We've had many clients that have closed deals outside of their home area but the one thing they have in common is that they all have a good local contact!

@Jim K. That's a great observation! Having the right relationships can make all the difference to your bottom line. So to your point, if you are investing in a great location but your GC is overpriced and your lender is too expensive, all of those things can cut into your profits too. This can make an otherwise profitable location a less profitable investment. One of the things I love about the BP community is that it allows us to establish good relationships across the industry.

@Mike Dymski I appreciate your response. It's true that yield is not profit. The concern is when the yields go down and your costs go up, profitability becomes more difficult. As far as rising home prices, that's going to be great for investors who already own properties. For those who are looking to invest, selectivity is going to be key! 

@Kyle Wells Thanks for your response Kyle! Kansas City seems like a great market.