I am retired and take educated guesses on all things financial.

August 15, 2008

August 15, 2008: Real Estate and More Real Estate

Returning from an extended trip to Columbus, Ohio working on the 96 unit rehabilitation of an older troubled apartment complex and continuing to ramp up operations near Wilmington, North Carolina with affordable homes in a sea of premium priced luxury plantation settings (that are not selling).

It appears to me that some of the Property Management programs in place at the premium developments are really puffing up costs to make a quick buck. Out of state property owners are naive as to the hosing they are taking. Present owners are naive. A perfect storm for Property Management firms, their legal departments and some real estate brokers to make a financial killing. I believe that this out of control situation works to my advantage because any legitimate and reasonably priced construction and management entity looks mighty appealing once the management fees of many current outfits are exposed.

I maintain the strong appeal of cheap multi-family housing for banks to rehabilitate for future profits and individual investors to own. The rental market is strong in every area I have explored. Forget the beachy-coastal areas of Florida and California. They have many more social and money problems that will tax or frustrate owners to look elsewhere. I would not buy multi-unit housing in either state on a bet.

On the run here at a Columbus Marriott with a weak laptop battery.

Posts that have been sporadic lately will pick up significantly beginning next week. I have a lot of opinions to vent on the market and real estate.

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