Taxes, Taxes, Taxes

The last couple of years have taken a toll on investment properties. With vacancy rates climbing and weakening Cap Rates, some properties have lost 30% or more of their value.  Regrettably, property taxes on commercial properties have not been adjusted to reflect this new value. As such, already strapped owners are paying an even higher percentage of their revenues to property taxes.

The rule I have always given my teams is don’t present me with a problem…unless you also have a solution.  Having identified a problem…here’s a great solution: Prime Property Tax Negotiation, LLC.  Prime PTN was formed to be an advocate for property owners that have been over-taxed. They will evaluate your taxes at no charge to you and fight for a lower assessment on your part.  There are no up-front fees.  Here’s the very best part: There’s no cost to you unless they are successful. 

Contesting assessments that overstate a property’s value is an extremely important component of wealth management.  I worked on a multifamily project in Phoenix, AZ that had an assessment that inflated the assessed value well over what it was really worth. By contesting the assessed value we reduced taxes and created over $150,000 in additional profits in one year.

How much will you benefit? To discuss potential savings call 503.336.6382 and ask for information about Prime Property Tax Negotiation, LLC.

Grace Hill does it again! 

One of the challenges of multifamily management is creating knowledgeable and professional employees.  Each month Grace Hill offers free training as a partial solution to the problem.  They also offer additional training on a variety of multifamily topics at affordable prices.  This month Kate Good & Jennifer Stamp will be presenting information on marketing, advertising and promotions.  I feel that apartment owners should change their “I can’t afford training” refrain to: “I can’t afford not to train!”  Why would anyone let someone be in charge of a multimillion dollar asset and deny them the resources to perform their job with excellence?

DATE/TIME: Wednesday, 6/17/09 @ 4pm ET, 3pm CT, 2pm MT, 1pm PT

SESSION DESCRIPTION: No need to rack your brain over advertising and promotions any longer.  Sign up for this exceptional chat experience and let these marketing gurus lead the way to unique and original campaigns that will certainly bring customers running through your doors.  Flex your marketing muscles and RSVP now!

COST: Spherexx.com and Video Rental Services have made this chat available to you at no cost.  Thanks for your sponsorship!

RSVP: Visit them at www.gracehill.com and look for the details of this event on their home page.  Click the RSVP link to sign up and receive Chat Event Instructions.  Then, log into Grace Hill about 10 minutes prior to the event and click on the Chat Room link, under the chat description, to be delivered to the Chat Room.  

*Please note that space is limited to 350 attendees in our chat room.  Be sure to login to the chat room 10–15 minutes prior to the event.

Rose City Commercial Real Estate supports all efforts to improve the effectiveness of multifamily pros.  If you would like to work with a pro, contact Rick M. Bean at 503.577.1034 or rick@rosecitycre.com

The future of the residential market is not clear in my crystal ball…but it takes no wizardry to assess the current situation:  There’s a lot of good people hurting right now.  A few of the folks that are upside down have taken foolish risks, but there are many more that  may even have a legacy of success, of winning and good luck…but whose joss just ran out.  Whether they got there for good reasons or bad, the many who are down on their luck are easy prey for charlatans and thieves.   There are real and effective solutions ranging from working out a loan accommodation, to creating a short sale.  In a short sale a homeowner’s bank permits the house to go for less than is owed.  This can result in a much, smaller credit rating hit than bankruptcy or just walking away from the home.  But it needs to be handled by a pro.

Enter Donna

Folks that have had a rough go of it deserve to be helped by someone that is not only compassionate, competent, and trustworthy, but by someone who will be their passionate advocate.  My friend Donna exemplifies these traits.  This specialty is well outside of the capabilities of most homeowners…it also exceeds the training and expertise of most real estate agents.  Donna’s Accomodation success percentage is 4 times higher than the average.  (Her win/win percentage is 100%.)

Perhaps most telling about her character, Donna was the CEO and teamleader of a branch of the third largest real estate brokerage in the US.  She left that position to be of service to those in need.

Who can you help?

1. Friends, family and acquaintances who need an accommodation workout to save their credit.
2. Someone who needs a short sale expert to evaluate options.
3. Those desiring a rapid turnaround on selling their home.
4. First time homebuyers and investors looking for value priced homes.

Be kind to those you care about and forward this information.  If I was in need…I’d want Donna fighting for my family’s future.  Wouldn’t you?

Take action today:  503.577.1034 or:  rick@rosecitycre.com.

Things are looking up!

 Associated Estates is a self administered, self managed Real Estate Investment Trust that owns 13,192 multifamily units in 52 communities in 9 states.  Their CEO, Jefferey Friedman, was interviewed by Keat Foong, the Executive Editor of Multi Housing News. 

New Renters Will Outstrip the Supply of Apartments

The number of new renters will exceed the supply of apartments by as much as two times, according to the president and CEO of Associated Estates Realty Corp. Jeffrey Friedman.

In an interview with MHN, Friedman argued that demographic patterns in this and next decade dictate that there will be strong demand for apartments that will outstrip supply. 

Friedman explained that the homeownership rate is about 65 percent currently, and that the total number of households in the US is about 120 million. “If 35 percent of the population rents, we are talking about 40 million households that are renters,” he said.

According to the census bureau, there will be 15 million new households over the next 10 years, translating to about 1.5 million new households per year. If only 30 percent of these households rent, says Friedman, this will mean there will be 450,000 new rental households per year in the next 10 years. 

However, apartment starts have been hovering at around only 200,000 units from the supply standpoint. “We know there is no overbuilding,” says Friedman. If this pattern holds, “In fact, there will be half as many new apartments built as new renters coming into the market,” he says. (more…)