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Get Rich Education

191: Why Fourplex Buildings Are An Investing Sweet Spot with Steve Olson

Get Rich Education

Keith Weinhold

Investing, Careers, Business

4.3602 Ratings

🗓️ 27 June 2018

⏱️ 45 minutes

🧾️ Download transcript

Summary

#191: What makes fourplexes such great wealth creators? Financing and economies of scale.

But there's one giant pitfall with many fourplexes.

Today's guest, Steve Olson of the Fourplex Investment Group (FIG) has an elegant solution to the pitfall.

He tells us how to maintain your investment's value for long-term returns.

You need to safeguard yourself against neighborhood blight to protect your investment's value.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week's show and learn:

01:30 Fourplexes are the largest building for residential financing.

03:27 Safeguarding against neighborhood blight.

07:00 The FIG: Fourplex Investment Group.

09:09 How to repel neighborhood blight.

14:50 Pro formas.

17:48 Dealing with today's compressed cap rates.

21:15 Pre-construction.

24:55 Exit strategy.

28:05 Fourplex prices.

32:55 Financing.

36:42 Property management. Valuation, appraisals.

38:54 Duplexes.

41:40 Keith's analysis of the investment.

Resources Mentioned:

FIG: Fourplex Investment Group

E-mail: solson@fig.us

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Transcript

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0:00.0

Get Rich Education is brought to you by Ridge Lending Group, apartment investor mastery, and producers' wealth. You're listening to the show that has created more passive income for people than nearly any show in the world. This is the powerful Get Rich Education. The President get rich education welcome welcome to gree episode one hundred ninety one from dublin ireland to

0:36.8

dublin ohio and across 188 nations worldwide, this is

0:40.9

Get Rich Education.

0:43.5

I'm Keith Weinhold.

0:44.6

We're talking about forplex buildings today and how they occupy a special place in the

0:49.6

real estate investing world.

0:51.6

And I'm not just saying that because I have a soft spot in my heart since

0:55.7

a fourplex is the first property of any type I ever owned. One thing that makes four unit

1:02.2

apartment buildings unique to you is that it's the greatest number of doors for that you can

1:09.7

have all under one roof and yet still qualify for the

1:13.5

advantageous conventional residential financing even though properties with five or more

1:19.6

units in them might be lived in by families therefore a residential use type you still need to

1:25.4

get a commercial loan because you've crossed the threshold

1:29.6

above four units. That's just how loans are structured in the U.S. And historically, you can

1:35.2

get 10 conventional financed properties of one to four units at those best financing rates and

1:43.0

terms.

1:46.9

So, yeah, therefore, with single-family properties,

1:49.1

you could get 10 doors this way.

1:50.8

With duplexes, you could get 20.

1:54.0

With four-plexes, you could get 40 doors this way.

1:56.0

Now, when you think about it,

1:59.2

it's actually pretty generous that Fannie Mae and Freddie Mac residential loans go up as high as four units

...

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