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Most people enter into the real estate world because of the “make a quick buck” factor. What are the secrets to finding success is the ever-changing market of commercial investing? David Lindahl suggests these 5 tips that are sure to grant you success in your future investments:
1. Cash flow- Cash flow is much higher in multi-family housing rather than single family housing because of the consistent flow of rent checks.
2. Economies of Scale are crucial in Multi-Family housing- In multi-family, an investor only needs to be concerned with the maintance of one roof or one landscape instead of having to deal with 6 different renters and their properties all over the city.
3. Competition is less in Multi-Family- Everyone thinks that Single family investing is the way to go in the real estate world with the latest trend of “house flipping.” What many don’t know is that the serious money can be made in investing in Multi-Family properties giving your expanding your real estate portfolio that much more.
4. With the large amount of cash flow, investors can afford to hire a team- A team can consist of assistants or managers to maintain your properties giving you the ability to invest in more properties.
5. The profit on selling your investment property yields a much higher return- The profits that can be made upon selling your multi-family property can be huge and much higher than a single family home. Initially, you will pay more for an apartment complex, but I promise you that your large return will be worth every extra penny.
Sure, flipping houses produces a quick and easy buck at the time, but the real estate moguls who consistently are building their real estate portfolio are the ones who are have been investing in multi-family properties making them much wealthier individuals than an occasional house flipper.
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For assistance with Apartments Investing in California — Los Angeles Apartments for Sale, San Diego Apartments For Sale, San Bernardino Apartments For Sale, Riverside Apartments For Sale, contact Michael Duhs, Managing Director of East West Commercial at (949) 939-8352 or www.EastWestCommercial.com. East West will help you find your apartment investment, apartment loans, commercial loan modification or apartment loan modification.
 Real Estate 2010
Real Estate 2010 on March 16, 2010 at the Westin Bonaventure, is the premiere information and networking event for the Southern California commercial real estate market. With 10 sessions and over 50 speakers, this full day event will cover the current market conditions, economic forecasts, strategies for success in today’s climate, distressed opportunities and much more. Networking opportunities are unparalleled with over 750 executives in attendance. Make your plans now to attend this dynamic event.
www.realshareconferences.com/re10
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East West Commercial
For professional service with Commercial Real Estate — commercial bpo, commercial broker price opinion, commercial reo, commercial short sales, investment sales, commercial loan modifications, and commercial loans, contact Michael Duhs, Managing Director of East West Commercial at www.EastWestCommercial.com or (949) 939-8352.
Early this week, rent comps in Orange County showed that Lake Forest had a huge decrease in the rental price of apartment of 11.4% as displayed by realfacts.com. Affecting this reduction, surrounding cities such as Brea, Aliso Viejo, Orange, Placentia and Fullerton, also had decreases in their rental prices. Realfacts.com compared these cuts nationwide and found that apartment rentals, on average are down by $105. What does this mean for today’s investor?
Investment opportunities are currently unlimited due to the economic downturn. Even with the dramatic decrease in rent costs, apartments are still being occupied to their full capacity. These rent cuts are only enticing more to the rental market. With the loss of jobs being so prevalent especially in Orange County and the surrounding areas, renting has reached an all time high. Investors alike can take full advantage of this. Not only is investing in one of these apartment properties wise; it would be foolish not to.
East West Commercial, Michael Duhs, Managing Director, (949) 939-8352.
With vacancies running above 10.6% nationally according to the U.S. Census Bureau Second Quarter 2009 data, landlords are doing what it takes to fill rental space in the nation’s apartment stock. In parts of southern California, namely the Inland Empire and Los Angeles, reports are indicating higher vacancy than the national average. Unemployment has reached a 25 year high and expected to near 11% by the second quarter. It could get more challenging over the next 9 months before it gets better.
What are the main causes for the vacancies? Some would say poor management. But, when it’s hitting a majority of the apartment owners, then one must look at the conditions of the market, not merely poor management. Supply and demand -- this is the case here.
Rent.com recently found in a survey that 70% of the nation’s apartment stock is being impacted and the renters are indicating a very common message. In its survey of 987,450 units across the nation, 90% attributed their situation to job losses, while 51% said they were trying to save money or could no longer afford rent at all. Other responses include: 43% saying they were “doubling up” or moving in with others in order to save money, 35% were looking for a better deal, 37% were impacted by increase credit declines, 31% were relocating, and 22% were buying a home.
All but one of the responses (buying a home) are attributed to job losses and an unstable economy. In other words, demand for apartments is found wanting when people are losing their jobs or can’t find work. It’s encouraging that we only loss 85,000 jobs in December 2009 when we’ve had so much job loss over the past 2 years. But, this loss is disappointing especially after November 2009 had a slight gain in jobs of 4,000. December’s fall was higher than expected. Experts thought the loss was going to mount to 10,000 job losses, not 85,000. So, my question, “Why does the stock market continue its march upward?”
What are apartment landlord’s doing in order to keep their buildings full? Creativity is king. First, they lowering rents, then they are offering free rent. Included in the incentives are free storage or more parking, lower deposits, or relaxed pet policies. Times are changing. The landlord is not in the driver seat. Now the tenant is calling the shots.
For investors – it’s a time to buy. Apartments for sale in Los Angeles and San Diego are plentiful, while forecasters are beginning to see some apartment units for sale in the Inland Empire (Riverside and San Bernardino) ahead of the competition of the long anticipated commercial loan defaults coming. This will in turn create more supply and put upward pressure on cap rates, thus driving down values. However, many investors are surprised at the slow deal flow. The difference in the bid / ask of apartments for sale in southern California still exists. Apartments in San Diego are still strong, whereas apartments in Riverside and San Bernardino counties are still having a difficult time, because of vacancy. Vacancies are still high and will remain high until the employment picture improves.
By Michael Duhs, Managing Broker of East West Commercial at (949) 939-8352, specializes in apartments for sale and senior housing for sale in the counties of Los Angeles, Orange County, San Diego, Riverside and San Bernardino. East West Commercial is seeing its Commercial REO and Apartment REO business increase in southern California. Contact Apartment Broker Michael Duhs at http://www.EastWestCommercial.com for investing in commercial properties for sale or coming to market.
We have a collection of Stealth Web Sites, Domain Names, and KeyWord URL's for southern California real estate agents working the SFR housing / home market. Examples: HomesDelMar.com, LaJollaHousesForSale.com. 000's more of them. Feel free to contact me at (949) 939-8352 or Michael.Duhs@cox.net
We have a collection of Stealth Web Sites, Domain Names, and KeyWord URL's for southern California real estate agents working the SFR housing / home market. Examples: HomesDelMar.com, LaJollaHousesForSale.com. 000's more of them. Feel free to contact me at (949) 939-8352 or Michael.Duhs@cox.net
We have a collection of Stealth Web Sites, Domain Names, and KeyWord URL's for southern California real estate agents working the SFR housing / home market. Examples: HomesDelMar.com, LaJollaHousesForSale.com. 000's more of them. Feel free to contact me at (949) 939-8352 or Michael.Duhs@cox.net
Orange County Faring Better than Neighbors
Orange County is faring better than its neighboring counties with respect to joblessness dropping from 9.8% in August to 9.4% in September according to recent reporting by the California Employment Development Department. Orange County is the only southern California county in the single digit category, while statewide the unemployment rate dipped from 12.3% in August to 12.2% in September. There is little good news, but this is a step in the right direction. Neighboring counties posted the following: San Diego 10.2%; Ventura, 11%; Los Angeles, 12.7%; San Bernardino, 13.6%; and Riverside, 14.7%. How do these numbers compare nationally? The nation as a whole had a down tick in the unemployment rate to 9.7%.
Positive Job Growth in Next 2 Years will Help Apartments
Cal State Fullerton’s Anil Puri, dean of Business and Economics, just released projections for 2010 and 2011 indicating positive job growth for southern California counties, a reversal from 2009. This will bode well for apartments and occupancy levels across the southland. Anil Puri is projecting employment growth as follows for the next two years:
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County
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2009
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2010
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2011
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Orange County
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-3.9%
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.6%
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1.7%
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Los Angeles
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-3.6%
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.4%
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1.3%
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Riverside/San Bernardino
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-4.9%
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.9%
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2.9%
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By Michael Duhs, Managing Broker of East West Commercial at (949) 939-8352, specializes in apartments for sale and senior housing for sale in the counties of Los Angeles, Orange County, San Diego, Riverside and San Bernardino. East West Commercial is seeing its Commercial REO and Apartment REO business increase in southern California. Contact Apartment Broker Michael Duhs at http://www.EastWestCommercial.com, http://www.CommercialREOs.tv (Commercial REO’s), or http://www.REOapartments.tv (REO Apartments) for investing in commercial properties for sale or coming to market.
Where would you like to live and work? Survey says...
The Golden State of California
California Ranks as the #1 Place to Live
Outsiders still consider California the place to live. This is good news for the outlook of the California economy – no less for apartment owners and retail establishments. California is still considered the Golden State according to a new Harris Poll recently conducted. California ranked #1 for the sixth year in row, while Florida and Hawaii ranked #2 and #3, respectively.
Echo Boomers – The Prime Renter Category Favors California
For apartment owners and investors the poll revealed an interesting statistic.The favored status was most prevalent among the echo boomers (ages 18-32),which is the group that rents more than any other group. Baby Boomers (ages46-63) was the next highest group to favor California. Weather is cited as the numberone reason for the attraction. These groups tend to live more active lifestylesand this played a significant role in their decision making.
Sun Belt States is Where People Want to Live and Work
Sun Belt States
Of the cities and states listed high on the list, the top four statesmentioned are all in the Sun Belt. The top city, interestingly not a warmweather Sun Belt area, was New York City, followedby Denver. San Francisco ranked 3rd , while San Diego was 4th and Seattle 5th . Los Angeles was 15th of the citythat most people either wanted to work or live.
Contact me if you would like to invest in apartments or retail investment properties in the southern California counties of San Diego, Los Angeles, Inland Empire (Riverside and San Bernardino) and Orange County.
By Michael Duhs, Managing Broker of East West Commercial at (949)939-8352, specializes in apartments and senior housing for sale, in the counties of Los Angeles, OrangeCounty, San Diego,Riverside and San Bernardino. East West Commercial is seeing its Commercial REO and Apartment REO business increase in southern California. Contact http://www.EastWestCommercial.com, http://www.CommercialREOs.tv (Commercial REO’s), or http://www.REOapartments.tv (REO Apartments) for your source for commercial properties for sale or coming to market.
Where would you like to live and work? Survey says...
The Golden State of California
California Ranks as the #1 Place to Live
Outsiders still consider California the place to live. This is good news for the outlook of the California economy – no less for apartment owners and retail establishments. California is still considered the Golden State according to a new Harris Poll recently conducted. California ranked #1 for the sixth year in row, while Florida and Hawaii ranked #2 and #3, respectively.
Echo Boomers – The Prime Renter Category Favors California
For apartment owners and investors the poll revealed an interesting statistic.The favored status was most prevalent among the echo boomers (ages 18-32),which is the group that rents more than any other group. Baby Boomers (ages46-63) was the next highest group to favor California. Weather is cited as the numberone reason for the attraction. These groups tend to live more active lifestylesand this played a significant role in their decision making.
Sun Belt States is Where People Want to Live and Work
Sun Belt States
Of the cities and states listed high on the list, the top four statesmentioned are all in the Sun Belt. The top city, interestingly not a warmweather Sun Belt area, was New York City, followedby Denver. San Francisco ranked 3rd , while San Diego was 4th and Seattle 5th . Los Angeles was 15th of the citythat most people either wanted to work or live.
Contact me if you would like to invest in apartments or retail investment properties in the southern California counties of San Diego, Los Angeles, Inland Empire (Riverside and San Bernardino) and Orange County.
By Michael Duhs, Managing Broker of East West Commercial at (949)939-8352, specializes in apartments and senior housing for sale, in the counties of Los Angeles, OrangeCounty, San Diego,Riverside and San Bernardino. East West Commercial is seeing its Commercial REO and Apartment REO business increase in southern California. Contact http://www.EastWestCommercial.com, http://www.CommercialREOs.tv (Commercial REO’s), or http://www.REOapartments.tv (REO Apartments) for your source for commercial properties for sale or coming to market.
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