Brian Patton's Blog

 

 

Investment real estate more stable than stocks

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.

 

New Housing law affects Investors and Homeowners

The recent housing downturn has spawned some definitive action by the U.S. Congress in the form of a wide sweeping new housing law.   It appears that the law effectively addresses some short term and long term problems of the housing market. 

 

Save at the Pump - Live where you Work

Live, work, and play has become a mantra of progressive thinking communities throughout the nation. Evidence is mounting that consumers not only want to live near their work because of the convenience, but also because of the rising costs of energy.

One such Alpharetta business owner that I spoke with has taken advantage of a little known allowance in the zoning code. See the code section here: That portion of the code allows business

Kiddie Condo Loans a Great Strategy for College Students and Parents

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.

Focus on "bad news" creates problems for markets

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 Strong

The 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 borrowers


 A 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 Flow

Cash 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 homes

Investing 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.

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