BiggerPockets

Off Campus Student Housing - 17 Units, Cap Rate = 7.3%

Monday, October 04

I am looking for an investor who is looking for equity-debt financing in a market that is in the "right cycle" to out perform the stock market over the next 5 years. Off Campus Student Housing will remain a "safe haven" for investors.

Enrollment in U. S. colleges is expected to increase by over 13% to more than 19.5 million students buy the year 2015. Reports show that only 30% fo college students are currently housed on campus, leaving 13.6 million students to find off-campus housing. With over 4000 colleges in the United States, the shortage of student housing is felt nations wide.

Call me Tom Gidlund at 360 201 2914 and I will give a complete package on this investment opportunity.

Buying and Selling a Home in a "Buyers Market"

Saturday, August 28

The rules change for the "Buyer" and "Seller" when you are in a "Buyers Market" and knowing these new rules will increase the probability of success for the "Buyer" and "Seller". The generic definition of a "Buyers Market" is "The condition that exits when a buyer is in a better position as to price and terms because the real property for sale is in greater supply in relation to demand". When this condition occurs Real Estate Agents need to educate their "Buyers" and "Sellers" on new strategies to be successfull this market.

For the "Buyer" they should request contingencies, ask for an allowance or credit, reduce your closing costs, request extras, shorten acceptance period. For the "Seller" they should, price the home according to the current market, offer a seller's contribution, make their home more marketable.

You have to be creative in this market if you are going to be sucessful especially for the "Seller" who can be in a very stressful situation with falling home values and a weak economy. Real Estate Agents can be hero's in this market however they must change the way they market properties.

A summary document on strategies for the "Buyer" and "Seller" in a "Buyers Market" is available upon request.

Fraudulent Investment Groups

Saturday, August 21

I knew it just a matter of time that FUNDSGO was shut down as a fraudulent website praying on those looking for investors. Before them it was the NEW YORK INVESTMENT NETWORK. You don't get something for nothing these sites claim to have a network of investors with money to invest and typically you can become a member with no fees however once you post your project and monies needed you are flooded with investors claiming to have an interest in your project and monies for you, however these emails are created by the website staff. They are very clever and they seem creditable promising monies, the catch is you have to become a paying member with a one time fee of $200-$250 then you can make contact with the investor. They get very creative with the emails to try and get your money.

Now there may be some legit sites out there but be careful, if you have to pay to make contact with an investor, walk away.

What's wrong with this opportunity???

Tuesday, July 27

You purchase a Off Campus Student Housing property built in the 1900's for $439,900 at the suggested list price and take out 30yr loan with a 5 year fixed rate of 6%, down payment $150,000. The property is off campus student housing with a net annual income = $5695, zero vacancy, 4 units and is zoned for 5 units. The land value, based on the recent sale of an adjacent property, is valued @ $638,750 (built in equity = $198,850).

The location is in a high demand, high end neighborhood with a sweeping waterview and easy walking distance to trails and services. Annual property appreciation is estimated to be 5%/year. Older properties are being torn down and replaced with high-end condo's.

What's wrong with this investment opportunity??

Who's afraid of property value increases?

Friday, January 08

I recently read an article by Petros Sivitanides titled “Capitalization Rate Influences and Property Value Increase”. The article addressed Risk associated with the future income and/or capital gains expected from the investment. Capitalization rates go down when the market conditions are strong and they go up when the markets are weak. An investment in real estate is made primarily on total expected return which is equal to the sum of income return and appreciation. There seems to be little concern or discussion regarding appreciation because takes more time and energy to research those factors which influence appreciation than to make the calculation of the capitalization rate.  If you have a lower appreciation return the investor should require a higher income return, implying a higher capitalization rate and visa versa. If there is strength in the local market in which your property resides you should accept a lower cap rate. A high cap rate does not assure a satisfactory return on your investment.

Investment Parameters Multifamily Purchase

Monday, December 07

What do you consider are the most important parameters influencing your purchase of a multifamily apartment complex in this national economy; Cap Rate, Vacancy Rate, Cash Flow, annual appreciation, equity, age, local economy, interest rate, DSC, % return on initial equity???