Landlords are always concerned about safety issues in their investment property. But there is no better time than during the holidays, to remind your tenants of some basic steps they can take to keep themselves and the property they live in safe. Holiday decorations present many “opportunities” for landlords to encounter additional liability. Read More »
Are We Stuck In a Moment In Time When We Expect the Worse? “Yes, but…” Say Investors
By Mark Heschmeyer
September 26, 2012
Despite improving job numbers, rising CRE and housing prices, declining vacancies and stabilizing rental rates, not to mention a new round of fed stimulus that will pump $40 billion a month into the mortgage markets, the prevailing sentiment in the commercial real estate industry still seems to be one of doom and gloom. And importantly that outlook is affecting which deals are getting done and which ones are not.
“Economically We’re in Recovery; Mentally We’re Stuck in Recession”
“We have noticed the trend as well and concur that a negative, or rather extremely conservative, mindset is prevalent with the investors in the market,” said Steve Timmel, senior vice president of Colliers International in Cincinnati. “Many investors are analyzing assets based on the ‘what-could-go-wrong’ view versus spending time focusing on ‘what-could-go-right’ and this has had an impact on pricing and deal velocity.”
“We appear to be in an extended period of uncertainty that is creating a tremendous amount of gridlock,” added Ron Riley, Timmel’s counterpart with Colliers in Memphis, TN. “As the economy grinds along, it will take really positive news to start moving it forward again in a sustained fashion.”
For now, at least, the mindset of investors seems to be one of caution while the economy staggers to its feet, ignoring the positive signs of returning growth and instead expecting another knockdown punch.
“Are we stuck in a moment in time when we expect the worse,” asks Randall Chrisman, principal of The Chrisman Co. in Carrolton, TX.
“Income property can be an important bridge to retirement for those without quite enough to retire in the traditional sense,” says J. Camarda, a real estate investor, Certified Financial Planner, and Chief Investment Officer of Jacksonville, Fla.-based Camarda Wealth Advisors. Because real estate is such an inefficient market, it’s possible to find awesome bargains with a very high return on investment, Camarda says. And if you can manage the property yourself, you can collect more income.
If you purchase the right property at the right price and on the right terms, he says, a rental property can produce significantly more income than traditional passive investments.
This article will describe how much you can expect to invest and earn, how to choose a location for your rental property, and problems that might derail your plans if you aren’t careful.
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