Savvy small investors are preparing to buy apartment buildings to grow income and increase investment returns. As the stock market slides and inflation erodes the value of paper assets investors are seeking the steady cash flow and relative security of commercial real estate investments. According to many industry analysts apartment building investments haven't looked this good in over 20 years.   

 In America and on a global basis, there has been a trend of general and progressively rising prices. You can see the the effects of this recent trend at places you shop everyday: such as your local service station, or your neighborhood grocery store. It is easy to see the data for yourself: per gallon, gas is over $4.00, while staple crop prices have reached new heights in the forward exchange. Even with this chain of events, it can be very hard for a lone person who invests money to make gains to know what the impact of inflation will have on their personal list of investment assets.    Many individual investors are fleeing mutual finds, stocks, or bonds; also known as paper assets. Stocks, bonds, and mutual funds will usually not do as well during inflationary times compared to hard assets, like silver, gold, or property investments.    

During the time leading up to a recession, many knowledgeable investors will choose to put their money into hard assets, such as property investments, both commercial and residential, to control and circumvent against the effects of inflation. The real estate market has much potential for growth during inflationary economic times. One of these possibilities, is commercial real estate investment. One way to put your money into the commercial rel estate market, is to buy an existing apartment building. This route will offer you considerable advantages over the investment of your money in paper assets.    

In general, somebody that invests in apartment buildings can enjoy beneficial effects during a time of recession. This is due to the fact that as the prices of work performed and goods purchased rises, the price of rent will rise also. To determine the value of an multi-unit rental property investment, you may take gross income and subtract expenses. This will give you the apartment buildings net operating income. Because of the increase in costs of goods and services, operating costs will also increase. However, this is absorbed in the increase in rent. This rising rent can also contribute to an increase in net operating income; thus increasing the overall market value of this type of investment.    

In addition, many construction companies that specialize in commercial property building are not willing to invest their time and the money it takes to purchase materials in building a new apartment complex that may never be sold. This situation is almost ideal for owners of existing multi-unit rentals. For them, there will be less apartments available on the market and a larger need in densely populated areas. There will not be a large availability of new apartments in the recessionary economy and inflation will cause a concurrent rise in rent prices.    

In most large cities in the United States, the need for rental property is scheduled to rise in the next half decade. There are two main reasons for the sudden need for rental property is increasing. One of these reasons that is causing rental unit need to increase is the increase of foreclosures on single family properties across the nation.    

The unstable economy has lead to many thousands of homeowners not being able to pay their mortgage payments. The banks, or lending institutions are then forced to foreclose, or take possession of the home. Due to this crisis and new, strict guidelines and terms for mortgage qualifications, many new buyers do not have the qualifications to obtain a new loan.    

Citizens with bad credit, or no credit are having a hard time obtaining loans because the market for sub prime mortgages has almost disappeared, because of the lack of demand in the secondary market. These situations have led to the fact that many people are out of their homes, or cannot obtain one. All of these people will need a home until the conditions of the market change. The likely place they will turn is to apartments, or rental units. Because of the situation at hand, the need for rental property in the United States is increasing significantly.    

Basic economic strategy shows that if there are the same number of rental units in a market where the need is increasing, the the market price for those existing units will rise. It is believed by some that the experts that have analyzed the real estate market have not accounted for the rising number of families that will need housing. They have possibly underrated the demand that will occur for apartments and other rentals. For this reason, I believe that rent and worth of existing apartment buildings will increase far more than what is currently thought.    

If you are looking to expand your investment portfolio and you would like to learn more about the many benefits of an apartment building investment then I suggest that you read my free mini course on apartment building investments that can be found at my website the hyde .   

If you are truly serious about learning exactly how to find, buy and manage very profitable apartment buildings then you must enroll as a student in my Buy Your First Apartment Building E-Course.