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People Would Move To Hell If That's Where The New Jobs Were - 02/25/09 12:28 PM
Look at current and future job growth as key factors when evaluating a market for multifamily purchases. To research opportunities I have traveled to Reno, Albuquerque, Phoenix, Seattle, and Los Vegas. Without exception job creation/population growth seemed to be the common fundamentals that told the tale. It seems that folks would move to hell if they could get a job.
That's why I'm so strong on Portland. We've seen good job growth on a consistent basis here for years and the promise of the future is for the pattern to continue or accelerate.
For those that are dour about the current multifamily market...remember that … (0 comments)
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Demystifying LTV Calcs - 02/23/09 08:17 PM
Simply expressed, LTV is the loan amount divided by the property's value, expressed as a percent. The value used will be the lower of the sale amount and the appraisal. Banking theory goes that the lower the LTV the more the investor goes from involved to committed. Yogi Berra might explain that discrepancy thus: "In a ham and eggs breakfast the hen that laid the egg was involved, but the pig the ham came from was committed." Example: What would a bank with a 60% LTV maximum, loan on a 42 unit multifamily asset under contract at $117,000 per door that … (0 comments)
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Forget Investing In Residential Real Estate - 02/19/09 03:35 PM
Before a Lynch mob is dispatched...let me clarify: I'm still a huge proponent of real estate investing! It's just that residential investments rarely cash flow...you have to wait to make your money at sale from appreciation. And you can't afford to have someone else manage the units for you in most cases. Banks limit you on how many residential investment loans you can have...but they don't care how many commercial loans you have active.
Take Off Your Training Wheels-
Rumor on the street is that banks are again permitting a prospective borrower to have up to 10 residential loans. Legally you
Heather … (0 comments)
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SELLERS, BUYERS & LENDERS - OPPOSING VIEWPOINTS IN TODAY'S APARTMENT MARKET - 02/18/09 02:06 PM
Doug Foley, is more than my friend and mentor. He's a CCIM designee, a commercial broker with several decades of experience buying/selling investment properties for himself and others. He's a founding member of the Northwest Real Estate Inverstors Association, and a Past President and current Board Member of The Rental Housing Association of Greater Portland. I am grateful he has given me permission to re-issue the article below. I recommend subscribing to Doug's blog at www.realestateinvestmentspdx.com/
SELLERS, BUYERS & LENDERS - OPPOSING VIEWPOINTS IN TODAY'S APARTMENT MARKETBy Doug Foley, CCIM
Three Points of View:
We have an interesting situation in today's … (0 comments)
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What Does Outback Steakhouse Have To Do With Real Estate? - 02/12/09 04:04 PM
SERVICE! SERVICE SERVICE!
Outback is a perfect example of a business that is a huge success because of its focus on value and customers. From top to bottom Outback does a better job of listening to their customers and providing a great meal at competitive prices.
They were one of the first to offer a usable curbside service that had specially designed containers to ensure your meal gets home steaming hot. Their to go system is particularly efficient, and they offer all the condiments and extras that their competitors scrimp on. They open the door and smile broadly when you … (0 comments)
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Demystifying Property Valuation: NOI and Cap Rates - 02/08/09 01:09 PM
There are over three dozen metrics for commercial properties that we use to evaluate assets as potential acquisitions, and to gauge their operational performance. Some are relatively intuitive: Rent/Sq. Ft., Cost per Door, Expense Ratio, Gross Income, etc. Commercial investors eschew using GRM (Gross Rent Multiplier) as that measures the income side only.
The first measurement investors look at to see if a potential investment warrants further investigation, is the Capitalization Rate, or Cap. The Cap is simply the percentage of Net Operating Income to the Purchase Price.
Cap %= Net Operating Income/Price.
As an example, an asset selling for … (0 comments)
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Rick M. Bean
Clackamas,
OR
More about me…
Rose City Commercial Real Estate
Address: 9200 Se Sunnybrook Blvd., Ste 450, Clackamas, OR, 97222
Office Phone: (503) 336-6382
Cell Phone: (503) 577-1034
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