Forum by American Apartment Owners Association

Welcome to the AAOA Forum, where we discuss the the topics our members want to hear and want to talk about. We like to take an active roll in the online community to help our members learn and help educate landlords new and old. We encourage you to participate and join in our discussions. Thanks.

Renovating Home Exterior Pays Off

by Dian Hymer, Inman News

Most homeowners expect the value of their homes will increase when they spend money on remodeling. However, this is often not the case. The recent Cost vs. Value Report prepared by Remodeling magazine in conjunction with the National Association of Realtors makes this point abundantly clear.

The Cost vs. Value Report was based on a survey of more than 100,000 appraisers, real estate sales agents and brokers in 65 different markets around the country. The survey included information about construction costs and specifications for 29 mid- to high-range projects. Those who participated in the survey were asked to estimate the percent returned on resale for each project. Read the rest of this entry »

Posted by Kim Ezzell on 06.16.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Property Sales

FHA Waives 90-Day Waiting Period for Resales

Change Intended to Help Lenders Get REO’s Off the Books

by Matt Carter, Inman News

In an attempt to help lenders speed the process of getting real estate-owned properties off their books, the Federal Housing Administration will temporarily lift a 90-day waiting period for property resales financed by FHA-guaranteed loans.

The 90-day waiting period — instituted in 2003 to counter predatory lending and house flipping — never applied to properties sold by Fannie Mae, Freddie Mac, or state- and federally chartered financial institutions.

But it can be hard to determine which lenders are exempt from the rule, and many who are exempt prefer to transfer title to REO properties over to property disposition firms that are not exempt, FHA officials say. Because a glut of foreclosed and abandoned homes harms neighborhoods and delays a community’s recovery, FHA will lift the waiting period for one year. Read the rest of this entry »

Posted by Kim Ezzell on 06.16.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Financing, Property Sales

Fed: Lenders Still Tightening Standards

Demand Picks Up In Philly, Cleveland, K.C., and Dallas

Inman News, June 13, 2008

Reports from the 12 Federal Reserve districts suggest residential real estate markets remained weak in most areas during the second quarter, with tighter credit standards reported for most loan categories.

The Federal Reserve’s latest “Beige Book” report documented flat or declining home sales in Boston, New York, Cleveland, St. Louis and Dallas. Inventory levels of new and existing homes remained high or were rising in New York, Philadelphia, Cleveland, Richmond (Virginia) and San Francisco.
Home sale prices decreased somewhat in Boston, Atlanta, Kansas City and San Francisco, but remained relatively stable in Richmond and Chicago. Residential lending activity remained generally weak in Richmond, Atlanta and Chicago. In contrast, demand picked up in Philadelphia, Cleveland, Kansas City and Dallas, but was about the same in St. Louis.

Reports from the districts included these details on mortgage lending and housing markets: Read the rest of this entry »

Posted by Kim Ezzell on 06.16.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Financing, Property Sales

The Low-Down on 1031 Exchanges: The 45-Day Identification Period - A Hindrance or Not So Much?

by Ken Tharp, Iowa Equity Exchange

Part of a successful Section 1031 tax-deferred exchange is meeting the requirement that potential replacement properties be properly identified within forty-five calendar days after the closing of the relinquished property.

Read the rest of this entry »

Posted by Kim Ezzell on 03.23.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Property Sales

SAVE THE DATE!

April Brookview Financial is announcing its 2008 Spring Rehab Retreat, featuring “The Queen of Rehab” Robyn Thompson, who has bought, ‘rehabbed’ and sold more than 256 properties at HUGE profits!

The Retreat will run Friday, April 11 through Sunday April 13.

Topics will include:

The 20 ‘WOW’ factors to make your house sell at lightning speed
Inside Secrets to Short Sales

managing projects and much, much more.

For more information contact Brookview Financial at 877–734–2211 and check back here for more details.

American Apartment Owners Association offers discounts on products and services related to your commercial housing investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.

To subscribe to our blog, click here

Tags: how+to+rehab+houses, apartment+owners+associations

Posted by Kim Ezzell on 03.17.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Property Sales

Why the Foreclosure Crisis Didn’t Crush the Las Vegas Apartment Market

Sperry Van Ness Director David Baird commented to us on the affects of the subprime foreclosure crisis on income properties, especially in Las Vegas.

Has the foreclosure crisis impacted rents and occupancy rates?

“Some markets are clearly affected by the economy right now,” David says. “Particularly San Diego, Florida, Phoenix, and Las Vegas. These are areas where commercial prices peaked and then crashed. Financing, even 90% loans, were widely available, and buyers took advantage of that. But once the values fell, these properties were largely overencumbered, forcing sellers to consolidate.”

Read the rest of this entry »

Posted by Kim Ezzell on 03.13.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Property Sales

What You Need to Know To Evaluate Income Property

Apartment sold photo Think you’ve found the latest hot-spot for investing in a rental property?

We asked Sperry Van Ness National Director of Multifamily David Baird to share some tips on evaluating deals in commercial real estate:

Job Growth

“You should always look first at job growth in the area,” David says. “Is there something to draw renters to your area?”

New Construction

After that, look at construction. “The construction industry has everything to do with rental prices.”

Read the rest of this entry »

Posted by Kim Ezzell on 03.09.2008. 1 Comment »

Filed under: AAOA Forum, Property Sales

Why is Las Vegas Real Estate Poised to Skyrocket?

We asked Sperry Van Ness Director David Baird to give us the inside scoop on the commercial real estate market in Las Vegas.

“Investors in Las Vegas are clearly holding on longer, wanting to ride out the current economic downturns. As a result, I’m seeing a reduction in inventory right now of around 75% from last year.”

There are fears about foreclosures, and tightening rules for financing. However, David explains, “the sellers who are on the market in Vegas right now tend to be the sellers who are in trouble for other reasons:

Read the rest of this entry »

Posted by Kim Ezzell on 03.08.2008. 1 Comment »

Filed under: AAOA Forum, Property Sales

Real Estate Investment Secrets, Part Two of Twelve

Finding the Right Real Estate Broker

an interview with David Potarf, Director, National Multi Housing Group: Marcus and Millichap

Denver photo Located in Denver, Colorado, commercial broker David Potarf averages around $200 million per year in sales. Mr. Potarf knows what it means to be a good broker, and how to find one. Whether you are a broker aspiring to Mr. Potarf’s sales goals, or an apartment owner looking to get the most from your investment, you need to know what makes a great broker:

What Makes a Great Real Estate Broker?

If you are an owner, a good broker should have already found you,” David Potarf responds. “They should have been sending you news of closed transactions in your area, of current listings that help you monitor the value of your property and decide when to sell.”

What if you have more than one prospective broker - how do you choose?

“Many people choose the top-listed broker, but that’s not the only option, and not always your best option,” Mr. Potarf continues. “Maybe the top seller is too busy right now to give you the attention you need. The number five broker may be just as capable, and more willing to give you their time. They should be touring buyers personally, and responsive when you call.”

In this interview, David Potarf discusses:

What questions should you ask when you interview a broker?

What are the red flags to watch for - before you hire the wrong person?

What are the advantages of using a broker over selling by owner?

How does a good broker bring in multiple offers and keep the sales cycle short?

Can you negotiate on fees?

This exclusive interview is included on the American Apartment Owners Association’s CD series, Real Estate Investment Secrets, twelve exclusive interviews with industry experts that will supercharge your ability to locate the best investment properties and manage or sell them for maximum profit.

Real Estate Investment Secrets is available for purchase from American Apartment Owners Association. Join as a Premium Plus member, and receive all of the benefits of our association including Real Estate Investment Secrets as our gift for joining. Visit www.joinaaoa.org for more information.

Check back for next week’s feature, “Secrets of Evaluating and Selecting Undervalued Properties” with Ron Brock, Sr., President and CEO: Pierce Eislen.

Missed last week’s feature “How to Buy, Reposition and Resell Income Properties for Maximum Profit” with Daron Campbell, Managing Partner, RE/MAX Commercial Real Estate? Click here.

American Apartment Owners Association offers discounts on products and services related to your commercial housing investment, including tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.

Tags: commercial+real+estate, commercial+investment, find+a+real+estate+broker, real+estate+investment+secrets, american+apartment+owners+association

Posted by Kim Ezzell on 11.13.2007. 1 Comment »

Filed under: AAOA Forum, Property Sales

REAL ESTATE INVESTMENT SECRETS, Part One of Twelve

HOW TO BUY, REPOSITION AND RESELL INCOME PROPERTIES FOR MAXIMUM PROFIT

an interview with Daron Campbell, Managing Partner: RE/MAX Commercial Real Estate

Daron-Campbell The top-selling commercial agent in California, legend Daron Campbell has sold over $1 Billion in real estate, and oversees over 70 agents. In addition, Daron has built up his own personal investment portfolio, and currently owns nineteen apartment buildings.

How did he do it?

This UCLA graduate studied economics, then spent some time with Marcus and Millichap, focusing his attention specifically on the commercial market. “In L.A., there are always more renters than there are apartments. It was clear that the commercial market would always be growing.”

Daron quickly caught on to what he describes as “inefficiencies” in the commercial market. While one building owner charges $700 a month for a typical one bedroom apartment, the owner across the street is commanding $850 for a similar unit. “There are great discrepancies in the perceptions of building owners as to the actual potential of the property.”

But what an owner determines to charge for rent will affect all the factors for valuation: gross rent multiples, costs per unit, costs per square foot, and even the capitalization rate calculation. A property commanding low rents, even with a tired appearance, can often be repositioned for a profit in as little as 18-20 months.

Hear more about Daron’s strategies, including:

how to apply them to your market
how to build your commercial investment portfolio even if you need to start small
how to contact Daron Campbell directly

Check back for next week’s feature, “Finding the Right Real Estate Broker”, an interview with David Potarf, Director, National Multi-Housing Group: Marcus and Millichap.