For the most updated information & news on real estate & Gabhart Investments go to our Facebook & twitter pages
Please click here to like us on Facebook
That must come with the more expensive course sold by Tom Vu
Following is a 7 minute video that was aired the 24th of August on CNBC with Hessam Nadji of Marcus & Millichap Advisory Services, and Alex Goldfarb of Sandler O’Neaill & Partners.
The subject of the interview is how to make money in the housing sector right now
Here are some key points.
They also talked briefly about the fact that institutional investors are looking at core trophy properties and locations.Â They are much more conservative and are betting that once a recovery happens that there will be above average rent growth due to the supply constrained markets they are in and the lack of multi-family construction that has been done.
I know many of you probably wonder why a company (institutional/REIT) would buy buildings at 5 CAP rates and it is a good question. What you need to consider though is they are usually more conservative and they are comparing these investments to T Bills which are giving almost no returns.
Private investors are looking at non core properties B & C. This is what most of us will buy.
Personally I am thinking that it is time to start considering Apartments again (remember I am more of an apartment investor than houses but it is the houses where we are making the returns right now because there are not many attractive apartment deals we are finding).
I don’t believe in just jumping right (back) in. I like to wait until there is some type of pricing trend because right now there is not enough sales in San Diego to be able to accurately price apartment buildings.
It’s also good to watch other people work out the kinks and really study the market/niche you are going into. Knowing the market (your niche) better than your competition is how you create opportunities for yourself. For example if you know rents can be 20% higher than your competition because you know that segment better you have the advantage of making better choices.
Okay originally I was planning on buying 2 properties in May and recorded this video towards the end of April. In these series of videos, I walk you how and what I plan to do to accomplish these buys. I will keep you posted with my progress.
I was using stumbleupon which is a really cool site which as they claim “Discover the Best of the Web in less time” is true.
Here is how the site describes itself
StumbleUpon helps you discover and share great websites. As you click Stumble!, we deliver high-quality pages matched to your personal preferences. These pages have been explicitly recommended by your friends or one of 8 million+ other websurfers with interests similar to you. Rating these sites you like () automatically shares them with like-minded people â€“ and helps you discover great sites your friends recommend.
Anyways it is a great tool to search the web for great content and is where I ran across this interesting video that plots the housing market since 1890 from a roller-coasters perspective. Don’t miss the end.