Investment Strategies

  WHAT IS AN ESTOPPEL CERTIFICATE? A real estate investor recently asked me what an Estoppel Certificate was and why he should know about them. The old Real Estate Adage is: “You earn when you buy…and get paid when you sell.” Due Diligence research is how you make sure you are getting what you are paying for, and an Estoppel Certificate is an important component of that research. When... Read More »

Portland's Multifamily Profits

The highest average multifamily profits are expected in Portland, OR; Raleigh, NC; East Bay, CA and Austin Texas?  So asserts Bendix Anderson in a  recent article in National Real Estate Investor’s NREI-Online.  Anderson says that Tier I markets such as New York City, Washington DC are expected to have the lowest average multifamily profits, while the aforementioned TIER II markets will... Read More »

James Bond

Great news for you Bond Fans, or “Bondies“!  (While I am a fan of spy movies…by “Bondies” I mean folks that prefer to invest in Bonds.)  The current yield for 10-year T-Bills is 1.8%.  Expert economists are forecasting bond rates to skyrocket by 60% to 2.85%/year by the end of Q4-2014. (Keep your champagne corked.) Remember that T-bills are tax exempt…so a year... Read More »

Multifamily Apartment Building

The Apartment Investing Market is heating up as a result of dropping vacancy rates, pent up demand entering the market, and the return of readily available low cost financing.  This is further enhanced by the low build rates over the last 5 years.  The bankers that wouldn’t return my calls 3-4 years ago think I’m a pretty cool guy again and even want to treat me to lunch. As the current... Read More »

Rick Bean stresses the importance of Due Diligence in multifamily profitability

PHASE III DUE DILIGENCE: PHYSICAL INSPECTION I’ve used an image of a stereo microscope to represent this post…it’s important to have both eyes open when conducting Due Diligence. I typically prefer to have the Books and Records Due Diligence research well under way before I set up a date for Physical Inspections.  Physical Inspection  almost always involves out-of-pocket expenses... Read More »