Want to have some cheap fun in your apartment without causing too much destruction and havoc? Have a picture party!

And by party, I don’t mean inviting tons and tons of people. I’d advise, for your sake and for your neighbors’ sake, limit your guest list to 5-8 people. Also, be sure that the ones whom you invite are creative and good with cameras. At the end of this event, you want to come away with hundreds of really great photos from a variety of different eyes that will immortalize your apartment and help you retain those often awesome, yet fleeting memories.

And if you take some really awesome pictures that feature your sweet looking apartment…be sure to share them with your apartment manager! Maybe they could use them to show how great and fun their apartments can be…Just a thought.

There are two ways of having this event.

1) Got Digital? - Have each of your guests bring their own digital camera and the cables or card readers they’ll need to transfer any pics to your computer. Schedule some board games or other fun activities as well as place a number of fun, cool looking objects around the apartment. Of course, you will want to have a few snacks and refreshments available. (Remember adult beverages should be for adults only and handled responsibly)

You’ll want to have a timer that goes off at a set time every couple of minutes or so, which will be time for every guest to take a picture. Doesn’t really matter of what as long as it’s a cool pic!

Then after a couple of hours, transfer all of the pictures over to your computer, have a slide show, and a ton of great laughs!

Disposable Disco- This one is more for those who are less concerned with perfect pictures and more concerned with the element of surprise. Supply each of your guests with a disposable camera as soon as they walk through your door. Follow the same activity and time guidelines as above, but every 10 minutes have everyone put all the cameras into a bag, shake them up, and then pull out another camera. This really mixes it up!

You could then take a group trip to your nearest one hour photo lab and see if they’d be able to actually print all the pics within an hour. If so, kill some time shopping or grabbing a drink while the pictures are being developed. After you pick them up, take them all back to the apartment and spread them out all over the floor.

You’ll come away with a bunch of great pics and possibly some great new decorating ideas with all the excellent photos.

Quick tip: If you keep your apartment well lit, make sure that you don’t use the flash. Flashes have a tendency of really white washing out pictures and if you can get around using one because your room is really bright…do it!

Either way you decide to do it, if you end up hosting one of these picture taking events, post your pictures on an account at Flickr and post a link to your pics in a comment on this blog. I’d love to share them in our blogs!

Check out ApartmentHomeLiving.com for more info on apartment living and the apartment lifestyle.

Hey Apartmentites! Brianne here, your apartment decorating and style expert, and I want to share with you a little insight on making your apartment fit the mold of the motto at Apartment Home Living.

Okay, so at this point I think it is safe to admit that there is a huge variety of things that people “Live 4″ out there, but one specific “live for” is our motto around here and it rings true with just about everyone…(except those sad and forlorned emo-kids.) We (most of us at least) Live for Fun!

So why not let it show in your apartment decorations too? Here are a few simple ideas to help you decorate your apartment to reflect playfulness and energy.

1. Keep the Dining Area Simple- Try a small wooden table and don’t decorate it too heavily. Allow the wood grain to shine and show off the simplicity. Let all the attention be put on the furniture. It becomes cheaper for you and makes a bolder statement. Avoid bulky drapes and let the sun shine through using light fabrics and light colors on the windows. You want you kitchen area to feel fresh and rejuvenating. The light provides energy!

2. Extra Space Can Be Great- If you have a ton of extra space in your apartment, turn some of it into an area for you to do the things that you really enjoy. Whether its a game station or a reading spot, maximize your storage and space possibilities by building shelves to house your favorite games, DVD’s, or books! Nothing says “fun” like having a space that is purely meant to celebrate what you do for “fun.”

3. Mirrors and Candles- So you want to have some really energetic, expressive, and fun walls but not sure how to do it? Easy. Take a bunch of left over or old mirrors and attach them to a wall at varying levels first. Right there, you suddenly have created an “open” feel that goes beyond fun and free. Then if you are feeling like really make the place great. Take a ton of candles (if allowed in your lease) and place them on small shelves in front of each mirror. It gives off a classic almost Victorian type feel in a fun and energetic way!

4. Accent Wall!- Don’t waste the time and energy painting an entire room. Instead, roll one solid (and very bold) color of the most important wall in a room and let it draw all of the attention. In your living room, make this either the wall behind your entertainment center or couch. In your bedroom, make it the wall behind the headboard. In the bathroom, make it the wall with the mirror. Remember…everything on that wall is going to stand out more, so don’t put your ugly old stuff there.

5. Put Your Life Into Your Environment- You should always have your apartment reflect yourself. In fact, it should be a spitting image! If you have a bold, bright sense of humor, using bright colors and letting in lots of light can really help match your apartment to you. One of my friends once framed a dozen different jokes and hung them all throughout his apartment. Everywhere you went…you could have a laugh. If music is your thing, how about framing cd inserts and hanging them throughout. If you can’t express yourself through the way your apartment looks and feels, when can you?!

If you follow these simple tips and have a little fun while decorating, your place will feel incredible in no time with energy and tons of flowing freedom!

For more info on the apartment lifestyle, check out ApartmentHomeLiving.com

My last apartment was fantastic…beautiful hill country views; a swimming pool that looked more like a resort in the Caribbean than an apartment community’s; awesome monthly parties where I actually made friends…in essence, the perfect apartment community.

Unfortunately, I rented this apartment at the height of a booming apartment market economy…so with a teeny, tiny special. Oh well. I often thought it was worth it when I lounged by that pool.

Times Change

Well, times and markets change. In fact, each market, submarket, city, and neighborhood can yield totally different concessions and specials. So just asking a friend what special he got may not cut it.

An apartment community’s special could be totally different from up north in a suburb to down south in the heart of the city. Pricing and specials depend on surrounding apartment construction, overall occupancy, floor plan occupancy, desirability of the area, and of course, that ever increasing interest rate pushing more and more people to stay in apartments. It can make it all quite confusing.

Where can you find specials?

So where can the average joe go to find out apartment communities’ specials? How about the web?

Websites like Apartment Home Living.com are proud to showcase apartment community’s starting rates on all floor plans offered, as well as their randomly changing specials, to help each renter determine the starting specials at communities. Just look on the left side of each of our ads, underneath the main photo. There are such a variety of specials out there. You’ll find things like $0 deposits, $300 off first months rent, and free application fees.

Sometimes, these specials are on top of already great specials that individual communities offer when you call or walk-in. So you will always want to call each community that you’re most interested in to see if the floor plan you like features an individual special. You might get lucky.

Summer = specials big and small

As summertime arrives, specials will become less frequent. It’s a great idea to hop online, complete an apartment search engine’s personality matching search, then check out your matches. Most sites will list specials, so you’ll know what you are looking at.

Many properties may list “call for specials.” Don’t be aggravated by this. Accept it as up-to-the minute consistency. Many specials do change day to day and week to week, as different floor plans change in availability.

This is your best avenue to begin the discussion process as to what exactly sets this community apart and why you really may want to check it out before deciding completely on price alone. Check out our other article on what to ask when you call.

Then call. You never know—your favorite place may be priced right where you need it—and right when you need it.

For more tips on apartment hunting and living in apartments check out: Apartment Home Living.com

You are planning to or have already moved to a new apartment. Or may be you want to redo the interior decoration of the apartment you are already staying in. Decorating your apartment can be a fun job provided you plan well. Here are some apartment decorating tips for you to keep in mind.

1. The most important apartment decorating tip anyone will give you is to plan well. Coming up with a realistic budget is extremely important. Now plan what you want to do in each room. Pore over decorating magazines and surf the internet for ideas. Write or draw the things you would like in your bedroom, living room, dining room and kitchen. Decide everything, including the color of the walls, wall decorations, furniture, curtains, drapes and lighting.

2. Having a not-so-huge budget does not mean that you can’t have a beautiful home. It only means that you have to be smart and creative. Yard sales and flea markets will save you a whole lot of money if you are not too snobbish about using second-hand stuff! You will get wonderful vintage items in estate sales. Choose items that will suit the theme you want in your apartment.

3. If you are good with your hands, you can sew the curtains and drapes of your apartment after buying the material. It will not only help you save money, you will also have a lot of fun doing it. You can also make decorative items from used objects.

4. If you are on a tight budget why don’t you do the painting of your new apartment yourself? Everyone in the family can join in. Not only will you have fun, you will also be able to spend quality time with your loved ones.

5. Apartments tend to be small so it’s important to use furniture, lighting and colors in a way that will make it look bigger than it really is. Buy furniture that is slender and not chunky. They will not only save up space, but will also look trendier. Asymmetrical shelves look modern. They also provide a place for keeping books and knick-knacks. Wrap-around sofas are cool to look at. Buy one in a dark color.

6. Use bright and happy colors on the walls of your apartment. They will create a warm ambience and an illusion of space.

7. Avoid using too much upholstery if your apartment is not too big.

8. The dining area should be given special importance. Choosing a foldable dining table is a great idea if you want to save space. Keep this area simple, warm and friendly where the whole family can sit down and enjoy mealtimes.

9. Got a lot of household stuff you want to hide? Store them under the bed! It makes a great storage place for items you don’t need everyday.

10. Use mirrors to create an illusion of space in your apartment. Placing large mirrors strategically makes a room look larger than t is.

Interior decorating your home is not a chore. It’s fun and fulfilling! Follow these apartment decorating tips to create a home you have always wanted.

“Looks like we found the right property,” a real estate agent said after he and his client viewed a 32-unit apartment building. “You like the property, don’t you?”

The buyer nodded her head in agreement.

The agent reached into his briefcase and pulled out the paperwork. “I’ve got the Purchase and Sale Agreement all done. All I need you to do is initial a few spots and sign the back page.”

The buyer did, and in less than five minutes, the offer was signed.

That’s usually how a Purchase and Sale Agreement (PSA) begins. You write an offer, the seller accepts or counters and eventually, hopefully, you have mutual acceptance. But signing the agreement prematurely is all too common.

At first glance the offer means little because if the seller has even a hint of common sense and negotiating skills, they’ll counter it anyway. But what if they don’t? What if they accept the offer as it’s written? What if there’s something about it that the seller or agent didn’t want you to know? This is one of the most important documents you’ll ever sign, yet most investors have no idea what it says or means.

Remember the good old days when a man’s word was his bond? Remember when you could shake hands and know-that when it was all said and done-everyone would be happy? You probably don’t and I don’t either.

It just doesn’t work like that anymore. The good old days are gone. Sad, but true. Times have changed. People have changed. And so has the law. That’s why mama always said, “Read the fine print.” You must take the time and energy to read and understand the PSA. If not, it could cost you tens, even hundreds of thousands of dollars.

Let’s start with the most basic legal requirements that a PSA must have to be valid. They are:

Mutual acceptance

Written agreement

Names and signatures of the parties

Purchase price

Consideration

Property identification and/or legal description

Of course the agreement is likely to include many other clauses such as due diligence, financing, earnest money deposit, title and the like. What happens if you or the seller fails to perform as outlined in the agreement? Who is entitled to what? Who bears the expense? What if the building catches fire or floods? What personal property is included in the sale? These questions and a whole lot more should be answered in the PSA.

Savvy investors know how to position the negotiation by using other clauses in the agreement. I have five or six additional clauses I like to add to my offer. For example, my violation clause states that if I find and notify the seller of a property defect, which is regulated by a government agency or code, the seller must correct the issue prior to closing. I include utility company requirements as well. Most PSAs do not have a violation clause. In fact, many agents don’t even know what it is. Most of them have never heard of it, especially commercial agents. A violation clause can save you an incredible amount of money, but if you’re the seller and you don’t read the agreement, you won’t even know it’s there.

In summary, you need to know what each paragraphs means. Take the time and effort to read it. Hire an attorney to review it if that makes you more comfortable. Whatever you do, heed mama’s advice and read the fine print.

In 1975 a young man from Cincinnati, Ohio worked hard to keep his latest project afloat. He was over budget and late, despite the fact that the new film would set the domestic record for box office gross sales of over $470,000,000 and win three Academy Awards. The movie was Jaws and the director was Steven Spielberg, one of America’s youngest multimillionaires.

Jaws, a 25-foot great white shark reminds me of some investors in this business. But not for the reasons you might think. Most people would think of the word shark as someone who is ruthless and crooked. That’s not what I’m talking about.

For a shark to survive, it must continue to swim. If it stops swimming, it dies. And that’s what happens to most investors in real estate. What would happen if you stopped? What would happen if you decided not to work for a year? Most investors are like sharks, their business would die.

That’s why apartment buildings make more sense. You can buy and sell multifamily properties without spending an extraordinary amount of time doing it. And, if you stop, your investment continues to flourish-if you know what to do.

That doesn’t mean you don’t need to go fishing first. You won’t do yourself any favors if you stop swimming before you’ve caught a fish. To that end, what are the biggest mistakes investors make when finding and analyzing properties? How do successful investors “fish” for the right opportunities? They start by avoiding these common mistakes:

It’s a marathon, not a sprint

The investment firm Edward Jones airs a commercial where a man wins an auction on a painting. He paid $50,000 for it and when the auctioneer said “Sold!” the man stood up and announced that he was ready to sell it. Stunned and speechless, the auctioneer glanced around the room as though the buyer were crazy. The commercial continues, explaining that the firm takes a long-term approach to investing.

Buying real estate is very similar. There’s nothing wrong with making a quick profit, but the fastest way to making millions of dollars in this business is tax-deferred asset accumulation of capital. Investing is like running a marathon (think long-term). Marathon runners train differently than those running a sprint. Be cautious of why and how you’re running the race. Those who think long-term last a lot longer and usually make millions more than those who do not.

Smart warriors put on their armor

Buying apartment buildings is exciting. I get energized when I find a property I really like. But we have to be careful to make sure the numbers make sense. Verifying and properly projecting operating expenses are to your investment what armor is to a warrior-you just need to do it right. Too often investors let emotion get the best of them and they begin to justify questionable numbers. Don’t let that happen to you.

Thanksgiving feast

My wife makes a mean turkey. I’m really not a big turkey fan, but when she cooks one up, that’s all she wrote. And although Thanksgiving meals include many other dishes, the main dish is always the turkey.

The same thing is true with apartments. Start by pre-analyzing the property. Does it fit into your investment plan? Don’t worry about the stuffing. Don’t worry about the corn and potatoes. They’re all part of the meal, yes, but put first things first. When you look at apartment buildings there should be three questions you ask yourself first:

Why is the seller selling?

Do the preliminary numbers make sense? If not, why not? Is there a genuinely justifiable reason?

If you had to sell the building tomorrow, would you get your money back?

Of course the other dishes are important, but the first dish is what holds them all together. Start by doing a quick analysis on the property and then move into the other ingredients. You’ll save yourself a lot of time and mental energy.

Overly optimistic

There’s nothing fun about being negative. Most buyers invest in real estate because it’s not only fun, but it also provides for all the other benefits we look forward to enjoying, such as financial security. Because of that, we tend to be optimists. I encourage people to be a negative optimist. Again, there’s nothing fun about being negative, but you don’t want to be overly optimistic either.

Many investors push expected operating expenses down, as discussed above, to turn a marginal opportunity into something it’s not. They do the same thing when they project rental income. Be careful of accepting any “market rent” an agent or seller claims you can attain. Do your own rent study and understand where the property is really positioned in the market.

Indecision

Good opportunities don’t stay good opportunities for long. Somebody else is looking for property just like you. If you find a building that makes sense-something you’d like to own-don’t wait. The Purchase and Sale Agreement (PSA) gives you plenty of provisions to back out if things are not what they seem. Some investors sit on the sidelines for years waiting for that one property that will make them a million dollars. Meanwhile, the two dozen they rejected are making someone else 10 times that. Don’t be afraid to pull the trigger. You have plenty of outs, if you need them.

No analysis

Some gurus teach that, long-term, you can’t lose when you buy real estate. That’s why some investors buy property without analyzing anything. They don’t do an effective due diligence. They pay little attention to the numbers. The best way to get run over by a steel ball is to try pushing one up a steep hill. If your goal is to lose a lot of money, buy real estate without analyzing the numbers or the property. If, on the other hand, you want to make money in this business, take the time and energy needed to properly analyze the opportunity.

As a real estate investor focusing almost exclusively on apartment buildings throughout the country, people often ask me what it takes to find motivated sellers. All buyers want to make intelligent investment decisions, and to do so investors must understand seller motivation-thus the question.

One of the most important principles for negotiating the purchase of a lifetime (over and over again) is to learn and understand seller motivation. They generally fall into one of four categories:

They need to solve a problem. (Management headaches, divorce, bankruptcy, death, illness, lawsuit, needs cash, dispute with partner)
Their circumstances are changing. (Retirement, moving, job transfer, increase in taxes)
They have other opportunities. (1031 tax-deferred exchange, business, stock)
They’re price motivated. (If they get their price, they’ll sell. If not, they won’t.)

If you buy an apartment building and hope to make a lot of money, you’ll need to convert current and/or future cash flow into value. Price is undoubtedly a major factor in your decision making process. If you negotiate with sellers who are price motivated, you’re less likely to get what you want and you’ll probably make a poor investment. It’s your job to figure out what’s driving the selling decision and then focus on solving whatever issue your counterpart is facing, but you don’t want to solve it by paying too much for the property. So how do you do it?

Assessing motivation is easy to do when you’re buying from homeowners. Most of them haven’t learned the same skills and strategies and they don’t know why or how to ask certain types of questions. For example, almost all investors ask the seller why they’re selling, and they should. If you ask Joe Homeowner that question, he’ll likely spill his guts and tell you that he’s moving out of town, going through a divorce, or is about to lose the home. He’ll openly give you all the information you need. It can be a bit more challenging when working with investors.

But that doesn’t mean the motivation is different, it just means the answers are not as clear. One of the biggest negotiating mistakes investors make is to assume they know what the other side wants. We’re all different. We all want different things for different reasons. Although a large percentage of sellers sell because of price, there are still plenty who are not price motivated. Even so, most apartment building owners will answer the “Why are you selling?” question with, “We’re doing an exchange.”

An IRS 1031 tax-deferred exchange falls under the “opportunity” category. Maybe they really do want to exchange out of one property into another because they can make more money. However, “We’re doing an exchange,” is usually just their way of telling you: “I’m not motivated so don’t try to steal my property.” They know what you’re doing and why you’re asking the question. This answer is especially popular with real estate agents-because they know negotiations will be difficult if you suspect you can buy the property for less. The point is there’s almost always something else behind the decision. Maybe they’re exchanging and maybe they’re not-it doesn’t necessarily mean that it’s the reason they’re selling the property.

The best way to get to the bottom of it is to ask a lot of well thought out, pre-planned questions. Think of assessing motivation as a fact-finding investigation. Have you ever asked the same question in a different way and received a completely different answer? We all have. It happens all the time. Do your homework and ask several good, pointed questions. Here are a few examples:

What do you like most about the property? What’s the one thing you would change if you could?
Why did you buy this property versus anything else on the market?
When was the last time you sold a property like this?
How did you arrive at the asking price?
How many other properties do you own? Why did you elect to sell this one?
What steps did you take to prepare the property for the market?

When new investors decide to buy apartment buildings, one of the first things I do is help them build a plan based on their objectives. For example, two questions I ask repeatedly are, “Why?” and “When?” Everyone wants to make money in real estate. Is that the goal? No! It’s not. The goal is the reason behind it. Why do you want to make money and when do you want it? What’s driving the decision?

For some it boils down to putting their kids through college. For others it’s all about setting aside a financial nest egg for retirement. Everyone has a reason and that’s what we’re trying to uncover when we ask sellers questions. We’re trying to get to the heart of the matter because they’re unlikely to tell us on their own. If you want to accelerate your net worth and buy properties that will make you richer, faster than you ever thought possible, master the art of assessing motivation.

Everyone has a reason. It’s up to you to find out what it is.

“Was it good?” my wife asked as I tried to lift my bloated gut from the dining room table. My eyes were clearly bigger than my stomach. I felt like I had gained 10 pounds. I was completely stuffed and ready to take a nap.

“It was very good,” I replied. “You outdid yourself.”

She smiled and started to clear the table. Though the living room couch and my favorite blanket were calling my name, I jumped in to help her. After we finally got all the dishes to the kitchen, she filled the sink with water, added a little soap and started washing them. I grabbed a towel and asked, “Can I dry the dishes?”

She passed out. (Okay, not really.)

But you get the point. Some offers are no-brainers. Others are a little more difficult to get accepted. What I want to talk to you about today is how to get sellers to accept your offer when you expect multiple Purchase and Sale Agreements (PSAs) on an apartment building.

If you find a property that’s not on the market and you’re negotiating with the seller, it’s not so difficult to get an offer accepted. That’s because you’re the only game in town and you have time to negotiate without the fear of someone else coming in to rip the carpet out from under you.

But what if you find a property that’s on the market and the value makes sense? Chances are there will be several buyers writing offers on the same property. If you suspect that to be the case, try these helpful tips:

Standard form

If you’re buying a large property (or a building from a seller who owns several hundred units), they’re likely familiar with the PSA and probably have an attorney who will look at your offer as well. Even so, I’ve found that most sellers are more receptive to offers written on standard forms. Agents are especially appreciative because they know what it says and they’ll sound much more credible when presenting the offer to the seller. The chance of getting your offer accepted, instead of another offer from a different buyer, is much greater if you use a standard form for your area.

Price

Don’t get greedy. If the property makes sense and you think there will be multiple buyers, present the seller with an offer at or slightly above the purchase price. That doesn’t mean you get stupid. The property has to be priced right to begin with, that’s why there are multiple buyers. The nice thing about apartment buildings is that they rarely ever check out exactly as represented. That means you’ll have items to use in the negotiation later.

Closing date

Some sellers will push you to close quickly and others need time to find another property to complete a 1031 tax-deferred exchange. If you can, be flexible. Find out what’s important to the seller. Even if the seller wants a long closing date, I’ve found that writing an offer with a fast closing timeline is usually best, especially if agents are involved. Agents despise extended closing dates and when two offers are similar, they’ll almost always push the earlier closing date. You can always add a clause that gives the seller the right to extend the close of escrow to give them time to find their next property, just be sure to remember the lending process and be mindful of the interest rate. If you play your cards right, this can work in your favor in the negotiation.

Inspection and financing contingency

Most PSAs consist of an inspection period and a financing period. Some brokerage companies will break it into several other contingencies, such as books and records and title report. For the purposes of this article, we’ll assume the inspection contingency includes physical inspection and the review of books, records, and all other documentation. Depending on your experience level and the size of the property, the inspection period usually takes between 21-30 days. Read the agreement. Most of them say that the clock starts ticking once the buyer has received all necessary documentation. For this reason, I’ll usually write a very short inspection contingency because chances are, the seller and/or their agent is going to miss something anyway. Most of the time, I can get through due diligence in less than 10 days, if absolutely necessary. Make sure you give yourself enough time, but be aggressive. Sellers want to know you’re moving ahead as soon as possible.

As far as financing is concerned, I’ve found that sellers and agents alike trip over themselves if I write an offer without a financing contingency. Don’t do this unless you’re absolutely, positively sure you’ll get the loan and you’re willing to do anything it takes to get it. Presenting an offer without a financing contingency tells the seller you have the means to get the loan and ultimately close the transaction, but it’s not without risk.

Earnest money

Some investors refuse to write an earnest money check payable to escrow because if things go south, the seller can make it difficult to get the money back. I’m in that same group. Generally I prefer to write a promissory note, however, if I believe there will be multiple offers, I’ll write a check instead. I usually instruct escrow not to deposit the earnest money check until I’ve removed the inspection contingency.

Resume

If you have bought and sold real estate before, give the seller a list of properties you own. Sellers like paperwork that tells them you are a serious buyer. I’ll also include a letter of interest from a lender if I think it will help.

Good properties don’t stay on the market long. That means you have to position your offer to look like a no-brainer. If the seller is serving a great meal, sometimes it just makes sense to offer to do the dishes. Ask a lot of questions and be aggressive. Put your best foot forward-it’s a small price to pay and the couch will be there when you’re ready to take a nap.

When most people hear about the millions of dollars investors make buying and selling real estate, the majority of them think about homes and duplexes. That’s because nearly everyone starts in the single family market.

But they don’t have to. The main reason investors start out buying homes is because they’ve heard all the stories or watched an infomercial where some guru is pitching the latest and greatest “no money down” technique. Buyers think they can purchase homes with no cash using a variety of methods including foreclosure, rehab, fix and flip, subject to, lease option, partnerships, wholesaling and more. And they’re right-you can buy homes that way. But you can do the same thing with apartment buildings.

The benefits of investing in multifamily properties are out of this world. I haven’t found a single reason not to invest in apartment buildings. Let’s review five of the top reasons apartments simply make more sense.

Apartments almost always provide a more affordable housing option:

I can’t get into all the economics explaining why apartments provide a more affordable housing option in this article because it would turn into a book. So let’s try to simplify it. The difference between the amount of rental and mortgage payments consumers spend each month is what I call the “gap”. Picture a bar graph where the average rent is $600 per month and the average mortgage is $1,000. The difference is the gap. As the gap increases fewer people can afford to purchase a home. There are only two ways the gap can get bigger. First, the mortgage payment increases or second, rental rates decrease. Most of the time rents do not decline, at least not significantly.

Mortgages, on the other hand, usually increase. If enough homes exist in the market, to meet demand, builders stop building. When demand catches up, they start developing again, because it becomes profitable. That means prices increase, and with them, mortgages. As mortgages increase the gap gets bigger and we experience greater demand for apartment rentals and that pushes rent higher. Rent growth always follows mortgage growth. This is one of the best reasons to buy an apartment building.

Somebody else manages the property:

One of the biggest advantages of buying apartment buildings is leverage. All real estate investors understand the term leverage, but most relate the term to money. There are lots of ways to leverage; money is just one of several. When you buy apartments, you leverage off the work and effort of other people because you can afford it. A lot of investors don’t want to be property managers-I’m one of them. Others don’t trust them and with good reason. But if you take the necessary steps, you’ll enjoy the benefits of apartment building ownership (cash flow, appreciation, tax advantages, or principal reduction or a combination of them) for many, many years to come. The best part? Somebody else does all the work.

The numbers make more sense:

When you buy single family homes and 2-4 unit properties your expenses usually consist of taxes and insurance. If you’re lucky, you might find one other line item such as management or utilities. But that doesn’t mean other expenses don’t exist. We all know there will be turnover, resident issues and the like. When you buy apartment buildings, expenses include taxes, insurance, utilities, maintenance, management, advertising and much more. Not only that, but you get to spread out the cost of maintaining the property across more units. The economies of scale are far superior to homes and 2-4 unit properties. For example, if you have a total of 20 houses, you have 20 different roofs. You also have 20 different utility bills, tax statements, mortgage payments and who knows how much time you’ll spend traveling from property to property. The numbers just make more sense with apartments.

Increase income (and property value) and spend very little doing it:

I have personally bought and sold many apartments where I didn’t spend a penny improving the property, yet I increased the value hundreds of thousands of dollars. While doing it, I also improved cash flow. “Forcing appreciation” on an apartment building can be as simple as increasing income and decreasing operating expense. To increase value with most real estate, you have to spend money improving the look of it. But that’s not necessarily the case with apartments. You might not have to spend anything at all.

Less competition:

Most investors limit their potential by selecting properties that require conventional financing. Then they shop based on the amount of money they have. When you look for a car, one of the first questions the salesperson will ask you is, “What price range?” Then they try to fit a car into that range. It’s true that the number of opportunities increases in relation to the amount of money you have available, but that’s the worst way to shop. There are lots of ways to buy apartments with no money, and because most buyers are looking for homes, you eliminate a majority of the competition when you invest in apartments.

Again, these are not all of the benefits to owning apartments, but it is a good start. I encourage you to check out The Successful Real Estate Investor, which is the first course many investors take to build a foundation for their overall investment plan. Once you do that, you’ll understand how and why investing in apartment buildings can make all your dreams come true.

Getting an apartment organized requires some special home organization skills. The areas to store anything always seem to be too small and the size of most apartment kitchens are enough to want to make you throw up your hands in defeat. But where there’s a will, there’s a way. Here are a few tips to help you maximize the space in your apartment.

Using Your Vertical Space

Use every inch of vertical space that you can. Get furniture that is tall. Bookcases are your friend. There are great ways you can use them and for more than just books. Use them to help you organize your kids’ toys in their room (use the top shelves that they can’t reach for displaying stuffed animals they don’t typically play with). Use them to display photos and knick-knacks. Use them for CDs and DVDs. Use all of the vertical space that you have in every closet space in the entire apartment. Stackable plastic containers or stackable plastic drawer units in closets can help you get your home organized and can help you effectively use the vertical space in those closets.

Cabinet Space Is Golden

Use every inch of it you can. Stackable plastic drawer units that fit under the kitchen or bathroom sink work great for organizing those spaces. These units also still make it easy for you to access what is in that space. Stackable plastic containers also work well for organizing these spaces and can be very inexpensive.

Kitchen Problems

A baker’s rack or pantry cupboard is the best way to tackle the problem of apartment kitchen storage space. A nice one of these in the dining area and in a style that matches your dining room furniture can help compliment the room in addition to giving you more storage space. And if you have space above your kitchen cabinets, don’t be afraid to use it. Attractive storage containers can help make the space look nice but yet still allows you to use it well. If you can find a hanging pot rack that won’t leave huge holes in the ceiling or wall, this is also a great way to free up cabinet space.

You control your space, your space does not control you. Use the space in your apartment to your best possible advantage. Just because you may have a smaller space, it does not mean that you can’t get your home organized in a way that fits your needs and that makes your home look beautiful.