Archive for the 'Q&A' Category

30 Jan

What is the difference between an economic slowdown, a recession and a depression?

The Gross Domestic Product (GDP) determines whether we are in an economic slowdown, recession or a depression. The GDP is the total value of the goods and services produced over a designated period. An economy that is growing is expected to increase its GDP. An economic slowdown happens when the rate of growth (which is […]

30 Jan

What affect has the presidential nominating process had on income property values?

The higher and record gasoline prices paid by Americans have had and will continue to have a significant affect on the value of income property. These new prices are changing the spending and driving habits of the American consumer. This is affecting where the consumer shops and the employment base of many communities. The combination […]

15 Jan

Does NetGain have a recommended strategy for 2008?

Yes. It’s covered in the recent NIPI Update. In spite of a softening economy, there are commercial real estate investment opportunities available under a strict set of guidelines. These are as follows: Stay away from negative spread, negative cash flow, mortgages with short-term maturities, leases with above market rents, next year’s projections, last year’s expenses, […]

10 Jan

What is NetGain’s prediction for interest rates in 2008?

Predicting the direction of interest rates makes for good media sound bites, but is of little value to commercial real estate investors. Commercial real estate investors don’t need to know where interest rates are going and should not attempt to play the interest rate guessing game. There are two possible questions concerning the interest rate […]