Archive for April, 2008

24 Apr

The High Cost of Risk in Real Estate Investment

The amount of potential loss should be every investor’s first concern. Why? Because recovering from a loss becomes mathematically more difficult as the investment declines in value. For example, when an investment declines 20%, it has to appreciate 25% to break even. When that same investment declines 40%, it has to appreciate 67% to break […]

22 Apr

How do different income property investments rank in the current economy?

The real test of an income property’s investment merit would be to complete NetGain’s EVS due diligence examination. That said, there are three core income properties: residential, retail and office. The following is a general overview of how income properties rank as investments in the current economy.
Residential: There will be a fallout of subprime borrowers […]

17 Apr

Is today’s economic downturn different from all the others?

There’s a quintessential list of clichés for each economic downturn. “This time, it’s different” is one of those clichés, the inference being that this will be the worst. What’s different about this economic downturn? The size of the pain (unemployment, financial loss, etc.) is different. The players are different. The politicians are different. The companies […]

17 Apr

Should I buy income property now that the market is in a downtrend?

The real question is “When should you buy income property?” The obvious answer is “At the bottom of the market when it’s about to turn.” Unfortunately, aside from luck (which smart income property investors don’t count on), there isn’t a dependable methodology available for predicting the bottom and subsequent upturn of an income property market. […]