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Whether the economy is suffering a crisis or a boom, real estate has always been the one place that the majortiy of the world’s wealth resides. Even in times when real estate seems to be the problem, there are fortunes to be made. Many investors begin with single family investments and soon realize the advantages that multi-family and commercial real estat offer due to their economies of scale.

The biggest secret of building wealth with real estate is that there is no big secret. You make your money, first and foremost, when and how you buy a property. Whether you get the lowest price or the best terms, the buying process is by far the most critical. And as complicated as it sounds, it’s really fairly simple.

One of the easiest ways to find a property and buy it at a low price is to find a property that has been neglected and with the proper rehabilitation and repair, can offer you a major discount with maximum upside value. Properties are neglected for a variety of reasons, and these reasons can be the leverage point for which you negotiate the best price and/or terms.

Once rehabilitation is completed, you have the choice to sell for immediate profit or hold, cash flow and exit at an appreciated price. In economic times like these, when there is a lack buyers in the market, holding the property is the most viable option and often the most lucrative.

Multi-family homes and apartments offer dramatic advantages over single family homes due to large numbers of tenants who are collectively paying off your debt and expenses. If one family vacates, there is only a fraction of the income lost, unlike the scenario if they leave a single family investment.

When you weigh the time and energy required to invest in and manage single family homes versus multi-family homes, you will notice that it is not dramatically different, especially when you compare the rewards and additional income of multi-family. If one is going to invest the time and energy anyway, it is wise to go after the highest return on investment.