Comments on: 6 Questions to Ask Before You Invest in Real Estate http://www.american-apartment-owners-association.org/blog/2008/12/01/6-questions-to-ask-before-you-invest-in-real-estate/ Real Estate News, Landlord Help, and Apartment Information Thu, 19 Nov 2009 18:45:35 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Lisa http://www.american-apartment-owners-association.org/blog/2008/12/01/6-questions-to-ask-before-you-invest-in-real-estate/comment-page-1/#comment-9888 Lisa Fri, 05 Dec 2008 22:16:29 +0000 http://www.american-apartment-owners-association.org/blog/2008/12/01/6-questions-to-ask-before-you-invest-in-real-estate/#comment-9888 We always say "You win when you buy". Especially when buying multifamily properties, it is important to buy something that is profitable now in its current condition(or at least exceeds expenses by a small margin!) Don't just buy thinking about how profitable it can be in the future when the area gets better, updates are made, rents are increased, etc. etc. This may not happen and you don't want to get stuck with a property that takes money out of your pocket every month! We always say “You win when you buy”. Especially when buying multifamily properties, it is important to buy something that is profitable now in its current condition(or at least exceeds expenses by a small margin!) Don’t just buy thinking about how profitable it can be in the future when the area gets better, updates are made, rents are increased, etc. etc. This may not happen and you don’t want to get stuck with a property that takes money out of your pocket every month!

]]> By: Steve Moss http://www.american-apartment-owners-association.org/blog/2008/12/01/6-questions-to-ask-before-you-invest-in-real-estate/comment-page-1/#comment-9885 Steve Moss Fri, 05 Dec 2008 19:57:17 +0000 http://www.american-apartment-owners-association.org/blog/2008/12/01/6-questions-to-ask-before-you-invest-in-real-estate/#comment-9885 It was good, I am not sure where we are in the cycle, but these are unprecedented times. The cycle model we tend to follow in not ringing as true as it has in the past. As the foreclosures started ramping up I saw my occupancy rates go to 100%. Obviously due to the reduction in homeownership. Now as unemployment is approaching levels I have not see for more than 20 years, I am getting calls from tenenats who have lost their job and want to work out something. If the unemployment figures continue to rise we will see new vacancy highs and with that some landlords defaulting on mortgages. This is the other shoe which has not dropped. And this will most likely be the bottom of the cycle. Don't buy yet! Be patient! It was good, I am not sure where we are in the cycle, but these are unprecedented times. The cycle model we tend to follow in not ringing as true as it has in the past. As the foreclosures started ramping up I saw my occupancy rates go to 100%. Obviously due to the reduction in homeownership. Now as unemployment is approaching levels I have not see for more than 20 years, I am getting calls from tenenats who have lost their job and want to work out something.

If the unemployment figures continue to rise we will see new vacancy highs and with that some landlords defaulting on mortgages. This is the other shoe which has not dropped. And this will most likely be the bottom of the cycle.

Don’t buy yet! Be patient!

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