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Cedar Rapids real estate mentioned in Wall Street Journal

Bob Randklev — Wed, 01 Apr 2009 16:24:00 +0000

I’m sure you’ve heard how bad the real estate market is across the country but the Wall Street Journal named Cedar Rapids as one of the bright spots across the US!

http://blogs.wsj.com/developments/2009/01/27/more-home-price-data-prices-at-2004-levels/

Government Stimulus Programs could benefit commercial real estate

Bob Randklev — Tue, 24 Mar 2009 16:23:00 +0000

By Denise Kalette

It’s been a busy week for President Barack Obama. On Tuesday he signed into law his $787 billion economic stimulus plan. Earlier today, he unveiled a $75 billion program to stem the tide of home foreclosures. To what extent will these moves benefit the commercial real estate industry? NREI asked a handful of economists and industry experts to weigh in on whether the president’s prescription for the economy and the housing market will work.
The Homeowner Affordability and Stability Plan unveiled today will help as many as nine million families restructure or refinance their mortgages to avoid foreclosure, according to the Obama administration. The program provides financial incentives for both borrowers and lenders working to reduce the risk of default.
The homeowner plan could have a trickle-down effect for commercial real estate, says John Terrence Farris, director of the master of real estate development program at Clemson University. Farris is a former community development consultant and subcontractor in Columbia, S.C. and other cities.

Read more here: Government Stimulus Programs Could Benefit Commercial Real Estate

Thinking of investing? Borrow at 6% buy at a 9% Cap Rate!

Bob Randklev — Thu, 29 Jan 2009 01:24:00 +0000

This is an excellent time to be thinking of a real estate investment. Local lenders are still lending at excellent rates. You can make 2-4 % on the Bank’s money and 8-10% on your equity. Try that in the stock market right now.
Area banks have plenty of money but want 20-25% down. They are also looking further back at historical operations of the property and may want 2-3 years of statements.
Of all the classes of commercial property Apartments have done the best over the past year and are anticipated to out perform other real estate investments again this year.
Economic downturns create some excellent opportunities. If you shop carefully and are don’t over leverage you can find some excellent investments right now.

Improving your returns in 2009

Bob Randklev — Thu, 29 Jan 2009 01:23:00 +0000

Interest rates are near historic lows creating excellent opportunities to buy or to refinance current properties. We are seeing 6% or less Loan Rates with 5 to 10 yr. balloons and 25 yr. amortizations. If you don’t refinance, we suggest you ask yourself a couple of questions.

1-Am I earning a market rate of return on my equity? If you have owned your property for a long time, you may have lots of equity but earning a low rate of return on that equity. If so, you might want to consider a 1031 Exchange as a way to increase your return.

2-If I could get an equal or better return on my investment without management and without paying taxes on a sale, would I be interested? If yes, call us and we can explain.

Call us for a no-obligation review of your options.

Expense Creep is it costing you thousands!

Bob Randklev — Mon, 19 Jan 2009 01:20:00 +0000

We are amazed at the number of owners we meet and find they haven’t really paid close attention to their expenses.We see owners let rents settle, property management fees creep up and utilities increase. Many owners just go by each month happy they’ve put some money in their pocket and they say “I’m paying the mortgage down each month.” They don’t realize an extra $1000 in annual expenses can decrease the property value by as much as $12,500!
Contact us if you feel you may have a similar problem!

2008 a year we’ll never forget!

Bob Randklev — Fri, 09 Jan 2009 01:15:00 +0000

Just a short year ago our newsletter stated “multifamily market indicators are shooting up” and they’ve only become stronger in the past year! You’ll see on the back of this publication we’ve sold a number of properties and there will be many more transactions in 2009!

With the collapse of both the financial and mortgage markets on the east and west coasts, investors are scrambling to find safe investments for their money. They don’t want to settle on the returns of CD’s or savings accounts so they are
turning to commercial investments and specifically housing aka: multifamily apartments!
Current lending rates are at all time lows and the problems on the coasts have not affected the Midwest and Iowa. There are numerous local banks who want to lend their money on multifamily properties.
Many investors have voiced concerns about the new administration raising capital gains tax on property sales, which is a good reason to look at 1031 Exchanges or Charitable Remainder Trusts for your family!
Be careful of what you hear in the news, or from late night TV and “guru investment specialists.” Most of what you hear is false and doesn’t apply to our market! If you want accurate information we suggest calling us! We work THIS market daily and understand how to make it work for you.
We have Buyers looking for properties and owners wanting to sell their properties. Many owners want to sell their property but reduce their tax liability. They also want to maintain a future revenue stream but at the same time reduce their work load! If you fit into any of these categories be sure to contact us for a private planning session!

Fee’s are thought of as a "hidden economy"

Bob Randklev — Thu, 28 Feb 2008 20:23:00 +0000

I don’t know if you’ve noticed but we are now getting charged “fees” everywhere we turn! Remember how great is was when you didn’t have to pay a monthly service fee for your checking account but now you pay a fee for almost everything at the bank! Here’s a great article from our local newspaper that will open your eyes!

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20080209/NEWS/433289985/-1/rss01&rssfeed=rss01

Freddie Mac is looking at apartment loans

Bob Randklev — Thu, 28 Feb 2008 19:16:00 +0000

A couple weeks ago I saw an interesting article that Freddie Mac is looking to get into apartment loans! Freddie Mac is a government sponsored provider of home funding. If they get this approved they can bundle together apartment loans and sell them as mortgage backed securities!

Read the entire article here:

http://www.realestatejournal.com/indinvestor/20080205-wei.html?mod=RSS_Real_Estate_Journal&rejrss=commercial

Future is Bright for Apartment Owners

Bob Randklev — Sun, 25 Nov 2007 14:20:00 +0000

Future is Bright for Apartment Owners

Local real estate professionals say tighter lending standards after the crash of the subprime market—loans made to people with poor credit history—is bringing back renters.

Read Full Article

Third Quarter Strength Boosts Multifamily Market

Bob Randklev — Sun, 25 Nov 2007 14:18:00 +0000

Third Quarter Strength Boosts Multifamily Market By Parke M. ChapmanBuoyed by the single-family housing downturn and fewer tenant concessions, apartment fundamentals improved sharply during the third quarter. One caveat is that a handful of Sunbelt markets with an over-abundance of unsold condominium units actually saw their fundamentals weaken during the quarter. Manhattan-based real estate consulting firm Reis Inc. reports that average asking rents increased by 1.3% during the third quarter. Effective rents also increased by 1.4% to an average of $964 per unit, the largest quarterly increases in a year. Vacancy also fell by 20 basis points to 5.6% at the end of September.Read full story here.