Legacy Wealth Holdings

Apartment Investing Fun Facts

There’s Opportunity for Everyone

Today I’ve got some fun facts for you on multi family apartment investing!

#1: Did you know that there are over 22 million multifamily units across the United States? 

Just in the United States! 22 million.

#2: The largest single owner of apartments in the entire United States owns 100,000 doors, which is a lot.

Don’t get me wrong, but in the grand scheme of things, that’s only 0.4% of the overall market.

When you think about businesses like Google and Apple who own 60, 70, 80% of a marketplace, and then you look at apartments and realize that the biggest owner, the biggest behemoth in the entire industry, only owns 0.4% of the market… 

That’s a huge, huge opportunity.

That means there’s people like you and me who have the ability to go out and compete, right? It’s a market of mom and pop investors who maybe don’t own 100,000 units, but they own 100 units or 50 units or 500 units or 5,000 units at a time.

There’s a lot more ability for us to compete in a market like that.

#3: Did you know, of all the multifamily properties in the US, 2.5 million are between 2 and 4 units?

Two and a half million. 

#4: There’s over 700,000 multifamily properties in the US with five units and bigger.

About 600,000 of those are between 5 to 50 units, 50,000 are between 50-100 units and another 50,000 are 100 units and bigger.

Again, it’s a market made up of a lot of small properties. That gives you a better chance of getting into these deals.

People, especially those who are growing their rental portfolio, tend to get excited about these big apartment complexes. The reality is, you can go in and start collecting a lot of smaller properties and building up your portfolio profoundly. Just find a bunch of buildings with 2 units all the way to maybe 34 units in the same zip code, and you can have the same scale that you would with buying one 100-unit building without the competition with the big real estate trusts and private equity firms. 

I think there’s a sweet spot in this range, where you’re bigger than the residential investors, but smaller than the institutional investors, where you can really make some money.

#5: All you need is 1

Here’s the key. Just one. That’s all you need. I own 25 properties at this time, about 3,000 doors as I’m filming this video, and I have an insane lifestyle. One of those can change your life forever.

So buy a good property now in a good area with the intent to hold it for the next 20 to 30 years. If you were to buy a 50-unit building at a valuation of $100,000 per door, that’s a $5 million property.

If you own it for the next 20 to 30 years and you pay it off – and let’s say over the next 20 to 30 years, rents bump up enough where it doubles in value. 20 to 30 years from now, you own a $10 million property free and clear that’s throwing off enough cash flow and enough net worth that you could pass down, generation after generation, to create legacy wealth for your family.

So as they say, don’t wait to buy real estate, buy real estate, and then wait. Go out, find some properties, build your portfolio, and set up yourself and future generations by building some long term legacy wealth.