HERE'S WHY I DON'T THINK WE'LL SEE A MAJOR CORRECTION FOR A WHILE
Sunday, March 27
We all know the saying, “what goes up must come down.” We also know that the real estate market is cyclical. Historically, real estate cycles have lasted 8-9 years. However, we have been experiencing property values going up and interest rates going down since 2009 (over 12 years ago). In yestery...
WHY I WALKED AWAY FROM A 40 UNIT DEAL
Tuesday, March 22
Last week I was in contact with an owner of a 40 unit apartment building in Independence, Missouri. The property was under a HAP program. To be honest, I was not familiar with the HAP program. All I knew is that the HAP program is another subsidized program and is comparable to the section 8 prog...
WHY I WALKED AWAY FROM A 40 UNIT DEAL
Tuesday, March 22
Last week I was in contact with an owner of a 40 unit apartment building in Independence, Missouri. The property was under a HAP program. To be honest, I was not familiar with the HAP program. All I knew is that the HAP program is another subsidized program and is comparable to the section 8 prog...
WHY 2022 IS MORE IMPORTANT THAN EVER TO STICK TO YOU NUMBERS
Wednesday, March 09
It is more important than ever to underwrite deals conservatively and stick to your numbers in today's market. The federal government printed so much stimulus money that society is paying the price of inflation. With so much money floating around in the marketplace, people are looking for assets ...
LOOK FOR THIS MAJOR RED FLAG IN INVESTOR'S UNDERWRITING
Sunday, March 06
One of the biggest red flags is if the investor thinks they can raise the rent of all the units in year 1 (especially if the property is a mid-size or large-size property). This is impossible. The property manager cannot raise rents from day 1. The property manager needs time to adjust to the pr...
LOOK FOR THIS MAJOR RED FLAG IN INVESTOR'S UNDERWRITING
Sunday, March 06
One of the biggest red flags is if the investor thinks they can raise the rent of all the units in year 1 (especially if the property is a mid-size or large-size property). This is impossible. The property manager cannot raise rents from day 1. The property manager needs time to adjust to the pro...