With Commercial Realestate trending down, when would be a good time to get back into apartment buildings?

In Buying Property - Asked by Russell A. - May 23, 2010
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Answer(s)

Lazer N.
Broker/Agent
Brooklyn, NY

not yet

May 24, 2010
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Bert F.
Broker/Agent
Boynton Beach, FL

Availabe financing in today's market is an important element to any acquisition of property. Lender's today consider that Multi-Family properties are one of the better income property investments and thereforeis one of the more financable investment products today. With the housing market still an uncertain commodity, in terms of appreciation or market loss in the near terms, housing is an necessary commodity. Combined with lower earnings in a number of market areas, rental is seeing a resurging demand. with a seasoned, experienced Realtor assisting in the transaction multi-family housing is an excellent product to consider for the long term.
Bert Freehof - Brenner Real Estate Group - 561-901-1031

May 24, 2010
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John S.
Broker/Agent
Saint Petersburg, FL

Now. While MF Housing is on the down swing, it is that way based upon the availability of financing in the MF Market. Once lenders start lending again in this market property values will rebound significantly. Our fundamentals based bank REO and Note purchase strategy allows us to purchase what would be, or will be fundamentally strong properties at significant discounts. We buy cash, foreclose, fix-up and lease up. When the lending sector begins to compete for MF Housing loans, and they will -- it will be too late for all the wait and see-ers... If you want more details, contact me, John Shine, VP, Acquisitions, International Commercial Property, at 7272-365-6112.

May 24, 2010
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DAVID B.
Broker/Agent
Los Angeles, CA

Russell, it depends on what your investment strategy is and where you looking to invest. I am seeing a combination of high-quality assets appearing for the first time in several decades, great cashflow investments hitting the market and many seller financing opportunities.
In Los Angeles, certain areas have CAP Rates compressing while other lower grade areas have CAP Rates increasing slightly. Around Downtown LA, rents have begun to stabilize and I am not seeing the amount of tenant turnover that we saw in 2008 and most of 2009.
Areas like Hollywood, Los Feliz and parts of Silver Lake have quality investments becoming available. In areas of South Echo Park, Westlake, Pico-Union and around USC, I am seeing very high CAP Rates.
The short answer: You should be actively looking and engaging the market to discover the types of opportunities you want. They are all out there now.

May 24, 2010
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Brandi L.
Oak Brook, IL

Good question. The answer is completely speculative and will certainly vary on a market and property-specific basis. Tough to time real estate transactions precisely with the bottom and top of the market as statistics can lag by months.
There are good opportunities in every market. Those who are informed and diligent but can still move quickly get the deals.
Jim Blanchard-Inland Real Estate
jblanchard@inlandgroup.com

May 25, 2010
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Carter M.
Broker/Agent
New York, NY

Hi Rusell,
I am a Real Estate Broker in Manhattan and I specialize in small buildings and individual units. The Real Estate Market has basically stabilized and I would suggest investing immediately. Let me know if you would like me to email you our Market Report.
Warm regards,
Carter

May 25, 2010
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Nathan D.
Broker/Agent
Yucaipa, CA

Russell - The answers below from "Shine" and "David" are right on point. I agree with both approaches and statements.

May 25, 2010
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Joe H.
Broker/Agent
Columbia, SC

Most people look at real estate as a one time purchase, where as some of the wealthiest individuals have portfolios filled primarily with real estate. Yet the average person pours thousands of dollars into the stock market, sometimes, to only have a piece of paper in the end. Real estate is now at the lowest prices we will ever see in our life time. BUY BUY BUY

May 26, 2010
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Nehal and Rupen S.
Researcher
Iselin, NJ

As one of the Real Gurus, Mr. Donald Trump, said in an interview when asked his greatest mistake in real estate. His reply, " Not buying enough real estate". He is absolutely right, take advantages of the depressed markets. Since markets don't alway remain depressed(business cycles come and go).

May 27, 2010
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