Wall St. problems for us?

Question

So the stock market is not doing well and borrowing is tight.  What impact have any of you seen on your real estate investing with rentals in particular?

Daniel Tavarez · Answer

Out of curiosity, know what the market is like in New York?

Ingrid Nagy · Answer

In NJ I've noticed rentals are a little harder.  In my neighborhood there are "for rent" signs up on every multi building.  I'm normally prerented before a tenant moves out; now I'm empty for at least one month with heavy advertising.  I work for a developer that just finished building 35 units (condos).  He's been selling for 4 months with one contract only.  I suggested renting out instead of condo to support the debt service until the market changes so I'll let you know how that works out.

Steven Grabowski · Answer

However, I don't want to get sucked in to thinking that there are a TON of good deals.  They still have to be carefully selected.  But I do think in times like these, when people panic, and want to sell or need to sell is when there is opportunity.

Everyone here says that the money is made when  you buy - I think we have a 3 (or so) year window of time to get the good deals.  Once it starts picking back up, prices go up.

The problem new landlords / RE investors face I 'think' is that credit is tight.  To get into Multitenant properties, you need to do commercial loans, and many banks want you to have a proven track record of property management, development, etc.

Any thoughts on my theories?

Mark Forest · Answer

Developer:
That is what I thought too.  Are any of you planning to buy some more rental properties?

Steven Grabowski · Answer

Less new - inexperienced landlords, better renting market due to people not being able to get loans for housing.