All Forum Posts by: Account Closed

Well see here in the next couple of days. Investors were spooked yesterday by the Fed's reasoning behind the rate drop. Because of the the bond market took at hit and rates actually went up a bit. I've talked to a couple of buddies in the lending business and they've said if the next couple days are good news we'll see a drop. If not then they'll stay where they are or go up. 

The Fed just dropped rates. This is their thought process. 

Information received since the Federal Open Market Committee met in June indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although growth of household spending has picked up from earlier in the year, growth of business fixed investment has been soft. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent. This action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

The Committee will conclude the reduction of its aggregate securities holdings in the System Open Market Account in August, two months earlier than previously indicated.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. Voting against the action were Esther L. George and Eric S. Rosengren, who preferred at this meeting to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent.

Implementation Note issued July 31, 2019

Yes sir. Anything 2-50 units in Tucson I'd be your guy. 

Hey Corey, not sure who you're using but my title agent offers a discount for investors. Most don't discount for a reissue if you've gone more than a month or two between closings. If you plan on reselling the property fairly quickly a hold open may be an option. 

Hey @Marc Piro, I do not have the breakdown for average/median size of the property. In my experience once you break down multifamily by asset class the actual number of units does not do much to impact the cap or price per door of that sale. I do have the data from 2018 and prior but do not have a way to share it. CoStar does not let me share the links or reports to their data. 

Hey Folks, just wanted to share the statistics for the Tucson multifamily sector.

-Average Price Per Door: $78,943

-Median Price Per Door $53,333

-Average Cap upon sale: 6.7%

-Median Cap upon sale: 6.6%

-Average Rents: 1Bed = $575, 2Bed = $695, 3bed = $900

Just as a caveat to this information please do not use this to analyze if you are looking at a good deal or not. Just like any market variances in product type and location play a major factor that is not accounted for in a city-wide median or average. Tracking these trends over time can however indicate the direction of the market.

Hey Folks, just wanted to share the statistics for the Tucson multifamily sector. 

-Average Price Per Door: $78,943

-Median Price Per Door $53,333

-Average Cap upon sale: 6.7%

-Median Cap upon sale: 6.6%

-Average Rents: 1Bed = $575, 2Bed = $695, 3bed = $900

Just as a caveat to this information please do not use this to analyze if you are looking at a good deal or not. Just like any market variances in product type and location play a major factor that is not accounted for in a city-wide median or average. Tracking these trends over time can however indicate the direction of the market. 

OK, thanks for the heads up @Mindy Jensen. Am I good here then or should I remove that portion? 

Hey Wayne, it sounds like you're on the right track. A couple of key factors I like to know at all times are the number of available units in my target market, the average price per unit, the last 12 month absorption rate, average vacancy/occupancy rates, and average rents for 1-3 bedrooms. You can pick up that information as you look at deals like you have been, but these are things your agent should be able to tell you. Is the guy you are working with sending you deals that make sense or just having you look through what's on the market?

Hey Folks, I was reading over the Tucson multifamily and rental market statistics this morning and wanted to get your thoughts on this.

There are currently nine large apartment complexes expected to deliver their units to the market within the next 12 months with the first opening their doors in the 3rd quarter of 2019. In total it is going to be 1,734 units which will be 2.3% of the current market. Because of this unit delivery, five more apartment builds coming after these, and just the general development across Arizona and the United States rental rates have been and will continue to stabilize. Year over year rental rates have dropped from a high of 5.25% in 2017 to 3.25% so far this year. Over the next three years those growth rates are expected to hit 1% year over year. In a shifting market how are you planning to invest in RE? We all know the most money is made in down markets and this shift may be the perfect fluctuation to boost your portfolio if you can take advantage.

Also, I want to set up a RE Investor monthly coffee or breakfast in Tucson. If you are interested shoot me a message. Once I figure out a headcount, location and date I can send you an invitation.