With the stock market volatility making many sick to their stomach, investment real estate continues to hold steady. Real assets, as opposed to paper assets, are more stable in volatile markets for several reasons. Liquidity, scarcity, and tax benefits are three major factors that create a stable real estate market.
Despite its relative obscurity, a great investment tool for college bound students is growing in popularity among savvy college parents. The FHA loan program, affectionately nicknamed "Kiddie Condo Loans", is one of the best programs out there to help jump start a student's credit and provide a low down payment option for cash strapped parents to purchase a home for their son or daughter.
Two nationally renowned experts
in economic forecasting recently spoke in Atlanta at an annual meeting
of the CCIM Institute, a group of recognized experts in commercial and
investment real estate from across the nation. The event was attended
by members of the group from over thirty states.Commercial Real Estate Fundamentals are StrongThe bad news of the residential market over the last few months begs the question of what will happen to the commercial real estate market in the coming year. In order to gauge investors' expectations for 2008 in this market segment, a group of leading research companies recently surveyed more than 1,000 developers and investors. The survey group included 92 institutional investors with an average of 19 years experience and an average real estate portfolio of $36.6 million.
Retail sales and inflation increase - effects lenders and borrowersA new government study on the strength of the US economy is a mixed bag of news. The report was introduced recently and found that November retail sales rose 1.2%. This is obviously good news for retailers anxious about the upcoming buying season. Some other good news is despite some slow down in the national housing market, housing related items, such as furniture and building materials, increased in sales in November.
Negative Cash FlowCash is king and so is cash flow. I've heard investors talk about buying a property and having negative cash flow for several years. While this may be advisable in very rare cases; in most instances, it is a bad idea to purchase an income property and lose money from the beginning. My 3 Rules of buying single family homesInvesting in single family homes? Not a business for the faint at heart, but it can be done. Here are my three unwritten, until now, rules for buying single family homes. I've learned these rules the hard way...trail and error, blood sweat and tears. 1. The house should not be up a hill or down a hill. If the drive way is steep either way, stay clear of it. The house is best to be above the level of the street. Five to six feet is ideal. California Investors look at Georgia Real Estate
Old Magnolia Apartments, a 16-unit apartment complex on Maxwell Road between Ga. 9 and Hembree Road, recently sold for top dollar to a California investor. After a brief inspection period and entertainment of multiple offers, Selina Chao closed on the property at just more than $77,000 per unit, or more than $1.2 million.
Net worth vs. Cash flow
The times are good for investors. That was the conclusion from my last
blog regarding the latest mortgage industry problems and their affects
on landlords and tenants.
The current credit crunch has stifled some potential home owners from purchasing their dream home, forcing many to stay in the rental market. This has been an encouragement to landlords who have suffered under stagnant rents and fewer prospective tenants over the last few years. 
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