Investment Insider
Anyone who reads my blog assumes that I have a bias for multifamily investments. I just think they’re the safest niche of commercial real estate…so to assume that would be correct. But my greatest bias is toward taking considered ACTION. So many investors miss the best part of the market by aiming, aiming and aiming some more before pulling the trigger. My Dad taught me a valuable... Read More »
Next week I’ll be testifying as an expert witness in a property tax appeal case for an 120+ unit multifamily asset in Salem, OR. Part of my research is to interview the on-site property manager. I was very impressed with how well she knew her area, the asset she managed, historical vacancy rates, concession rates…she was a pro. Some people have an innate talent for property management... Read More »
To be a genius in 5 years make smart real estate investments today. To minimize risk a conservative investor should consider: Buying a multifamily investment with no debt, or very low Loan to Value debt. If any debt is part of the deal make sure it is positive leverage! (Finance rate percentage is lower that Cap Rate.) Buy in a city who’s in “Recovery Mode”. Use Portland as... Read More »
The obvious metaphor for Recession is Winter. In winter the days are shorter and there are few opportunities for growth. As bad as this latest Recession was in Portland, for Phoenix and Las Vegas it was like a Nuclear Winter. LENDERS During a recession risk adverse banks shut down lines of credit, increase Debt Service Coverage Ratios, lower Loan To Value requirements, and in some cases cease... Read More »
Timing the market is as important as getting a good deal. The Portland multifamily investment market is at a perfect situation to enter or reposition equity. This installment, the 4th in my When to make multifamily investmests, covers the climate for new investments during the Hypersupply phase. The Hypersupply cycle in investing is like Fall. In Fall trees slow their growth, flowers fade... Read More »
