My insightful friend Kevin wrote this great article on the multi-family state of the market.. Let us know if we can assist you with some wealth management ideas.
Bad news regarding the residential homeowner creates investment opportunities for apartment buildings!
by Kevin J Rocio on Thursday, August 26, 2010 at 10:59am
With all of the bad news coming out right now about the U.S. economy many people are tempted to hide their head in the sand and pretend it isn't happening. From my experience investing in various markets, including commercial real estate, I have found that the most successful investors are always keeping a lookout for a unique situation. In my opinion, we are now seeing one of those unique situations inside of the apartment building market.
For example the New York Times published an article today titled "U.S. Mortgage Relief Effort Is Falling Short of Its Goal". Here is the "bad news":
1) The dropout rate from the Making Home Affordable Program was very high: 96,000 trial modifications were canceled by lenders in July. The number of canceled trials now exceeds 616,000.
2) Many modification seekers did not qualify for permanent status, either because their debt load was not heavy enough, they did not live in the house, their documents were incomplete or they simply failed to make the trial payments.
3) Critics say the program will provide little long-term relief.
In addition to the failing U.S. Making Home Affordable Program, the government now admits that as many and 1 out of every 3 home mortgages is now underwater. This is a startling statistic and it can only mean that we will eventually see more foreclosures.
So how does this affect the apartment building investor?
The answer is simply one of supply and demand. It is obvious that those families who are leaving their homes because of foreclosure will have to live somewhere. The best choice for many former homeowners will be to rent an apartment. This means that demand for apartment housing in the near future could outstrip demand.
As I continually stress to my apartment building investing clients, it is absolutely essential that the beginning commercial real estate investor educate him or herself thoroughly before deciding to invest their hard earned money and time into buying apartment buildings.
Get your head out of the sand and see the "bad news" for the opportunity that it truly is. Message me and I will recommend the best course to enroll in in your area so that you can begin to invest in highly profitable apartment buildings anywhere in the United States.
Apartment Building Owners see a rise in occupancy!
At least one group of housing-industry entrepreneurs are feeling a bit of relief in this dismal economy: the owners and managers of apartment buildings.
According to a new survey from Rent.com, a growing number of apartment property managers and owners are seeing lower vacancy rates in their buildings this year when compared to 2010.
According to the survey, 42 percent of owners and managers are reporting lower vacancies this year than last.
It's also a bit strange that also qualifying as good news is the fact that 70 percent of managers and owners cited job losses as a major reason for the vacancies in their buildings. That doesn't sound like good news, I know. But when you consider that last year 90 percent of owners and managers said the same thing, it actually is.
The trend is now working in our favor and apartment buildings are poised to skyrocket in value over the next five years. The time to take advantage of this unique situation is right now.
Learn everything you need to know to buy, manage and sell your first apartment building. Feel free to message or call me if you have questions or want to know what courses you should take before you start to invest in apartment buildings.
