Keys to understanding opportunities in real estate

By David Sherman | October 2, 2012 10:04 am as seen in http://www.pionline.com

Summary: The savvy commercial real estate investor knows that properties with stable, long term tenants that produce  reasonable (an amount determined by individual criteria) fetch top dollar. Other properties with slightly more risk (expiring leases, high maintenance, vacancy, refinancing needs, etc) are dirt cheap. The goal is to find the mispriced riskier properties, install new management and add significant value, and then sell as a safe investment for a nice profit. Investors are duplicating this process with properties from single family homes to skyscrapers.

Key Memorable Points:

Income is expensive, but bricks are cheap.

As traditional debt capital remains limited, new sources form.

A steady supply of overleveraged assets will continue to come to market.

Fundamentals have bottomed out in most major markets.

Mispriced risk creates attractive investment opportunities.

Read the full article at Keys to understanding opportunities in real estate

A. Joseph MarshallColdwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

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When Not to Talk with a Realtor

(Originally published March 2011)

I try to attend at least one networking event in the community each week and I occasionally meet other Realtors. Because we’re working the same crowd it is easy for us to chat with a group of people. But sometimes I have to politely end a conversation with a Realtor and so should you. Here are four conversational clues that tell you you’re not talking with a professional.

“It is unbelievable!” If this is the response you get after you ask, “How’s the real estate market?” you should walk away. This reply was heavily touted in training materials in the 1950’s so that, whether the market was good or bad, the agent would have an immediate, positive reply. It is still being taught. This particular reply is also outdated, unconsidered and, literally, not to be believed. If I ever say this off hand you have permission to stomp on my foot.

“…but I used to be an engineer.” An immediate disclaimer to the question, “What do you do?” should not be “I’m a real estate agent, but I used to be…” This person is probably embarrassed about his/her career choice and may not be around long.

“It is a [insert possessive noun] market.” A professional won’t bifurcate the marketplace when you ask what the market is like. It is always a buyer’s or seller’s market. She or he should have a more academic answer.

Finally, if a Realtor you’re speaking with says, “Call me when you’re ready to buy or sell,” this person is putting profit over value. I want you to know that you may call me (352-1222) for any reason.

I truly appreciate your friendship and referrals.