Thursday, April 9, 2009
Are we Crazy?
Someone asked me if I was crazy today for a posting I placed on our local Real Estate Investment Group Website. They were referring to a investment property I have for sale in Memphis. The property will be a true turn key investment property. I posted that the price was 48750.00 with an After Repair Value of 85k to 90k. It is a 3 bedroom 2 bath situated in a quiet cove. I offered guaranteed rent of 900 a month and no maintenance for 1 year. Ok, I just posted that I guarantee 10800.00 for the first year. Has anyone seen an offer that good at less than 60 cents on the dollar? You asking how can I do this. Well, the fact is that The Uptown Group is not just a wholesaler, not just a rehabber, not just about financing, not just about consulting and not just about property management. We do all of the above. What this does is create accountability. We are accountable to you every step of the way. Our product is superior. We do not over promise and we do not over inflate our numbers..period. I have to fit in one more, "not just about" so here goes. The Uptown Group is not just a about profit...we are about creating successful real estate investors. Please email us today for more info at info@theuptowngroup.com.
Sunday, April 5, 2009
Why The Uptown Group?
I received an email on Saturday from our VP of Sales that asked me to talk to a potential investor about the Memphis Market. I called this investor who lives in New Jersey to tell him about the Uptown Philosophy and why he should do business with us. He told me that he had talked with several "wholesalers" from the area and he wanted me to separate us from our competitors. The first thing I told him was that we are a full service real estate investment firm. Unlike other so called "full service real estate investment firms," every aspect of your real estate investment experience is in our hands. We handle the acquisition, financing, rehab, consulting and leasing and management of your investment property. Most of our competitors handle only one of the preceding tasks. If they sell you a property and they claim the after repair value is 95000 and it appraises for 65000, they don't care...they sold you the property...they made their money and they do not have to deal with the consequences of their inflated numbers. The Uptown Group actually loans you the money for the purchase and rehab of your property based off the ARV. Why would we inflate this number and create a situation were you are upside down on your property? Guess what...If this situation occurs we do not get our money back in a timely matter. Think about it...would you loan money to someone if you new your collateral was insufficient? Our financial analysis sheets have ARV, rent range, maintenance numbers, vacancy numbers and expected cash flow. If we inflate any of these numbers "to make a sale" we are shooting ourselves in the foot. Who lent the money, who has to do the rehab, who has to rent the property and who writes you your net rental checks at the end of the month...the answer is The Uptown Group. Doesn't that make you feel a little more comfortable knowing that we are accountable to you in every aspect of your investment. We pass the buck to no one....it is on us. Email us today at info@theuptowngroup.com for free real estate investment consulting. After a brief explanation of "our way," our New Jersey client committed to one of our properties and we look forward to serving him!
Saturday, March 28, 2009
Why Today is the Perfect Time to Invest in Real Estate
Why Today is the Perfect Time to Invest in Real Estate
I recently read an article by Isaac Taylor, the Director of Renaissance Capital, and he made some really great points of consideration for the Detroit housing and rental market which are very comparable to Memphis. Here's some food for thought.
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Beyond the strong rental income potential, the current dynamics of the housing market point to signs of a dramatic future price appreciation. First, current price levels are 70% lower than the average area housing prices over the last 15 years. It is reasonable to expect that once banks are able to unload their portfolio of foreclosed properties over the next few years, prices will likely begin to revert back to that 15 year average. This would point to appreciation of more than 300%.
Second, the current market rental rates, which average $750 per month for a three bedroom home within the city of Detroit and significantly more in the suburbs, suggest that home prices are significantly undervalued. It is currently 50-70% cheaper to buy than it is to rent. While the metro Detroit area does face negative economic pressure as a result of the declining auto industry, the continued strength of the local rental market is evidence that the effect on the underlying value of area housing has been somewhat overblown.
While no one can be sure exactly when the real estate market will normalize, it seems reasonable to expect significant price appreciation for properties located in desirable neighborhoods within metro Detroit given the above factors. Stabilization will likely begin to occur as the supply of foreclosed properties on the market declines. Appreciation should then accelerate further as demand from former homeowners increases as they rebuild their credit and begin to look to purchase homes they are currently renting.
In light of the relative stability of the metro Detroit population, it is likely that average rental rates will not fall significantly from the current levels. In fact, according to recent reports from Crain's Detroit Business newspaper, rental rates have increased by 1.9% on a year-over-year basis. Thus, over the long-term, home sale prices should increase to reach equilibrium with the rental market. Using the rental market as a guide to the underlying value of homes in the area suggests that home prices should appreciate by 200-300%.
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This article helped me think more about why there has never been a better time to get in on real estate investing. It is important to not only think of what is going on right now, but the great appreciation my rental houses may have in the future. I have always heard buy low - sell high. Today’s economy and this article help reinforce that.
Taylor, I. (2009, January 5). Why, Today is the Perfect Time to Invest in Real Estate, Part 2!. Retrieved March 28, 2009, from http://ezinearticles.com/?Why,-Today-is-the-Perfect-Time-to-Invest-in-Real-Estate,-Part-2!&id=1849782
I recently read an article by Isaac Taylor, the Director of Renaissance Capital, and he made some really great points of consideration for the Detroit housing and rental market which are very comparable to Memphis. Here's some food for thought.
--
Beyond the strong rental income potential, the current dynamics of the housing market point to signs of a dramatic future price appreciation. First, current price levels are 70% lower than the average area housing prices over the last 15 years. It is reasonable to expect that once banks are able to unload their portfolio of foreclosed properties over the next few years, prices will likely begin to revert back to that 15 year average. This would point to appreciation of more than 300%.
Second, the current market rental rates, which average $750 per month for a three bedroom home within the city of Detroit and significantly more in the suburbs, suggest that home prices are significantly undervalued. It is currently 50-70% cheaper to buy than it is to rent. While the metro Detroit area does face negative economic pressure as a result of the declining auto industry, the continued strength of the local rental market is evidence that the effect on the underlying value of area housing has been somewhat overblown.
While no one can be sure exactly when the real estate market will normalize, it seems reasonable to expect significant price appreciation for properties located in desirable neighborhoods within metro Detroit given the above factors. Stabilization will likely begin to occur as the supply of foreclosed properties on the market declines. Appreciation should then accelerate further as demand from former homeowners increases as they rebuild their credit and begin to look to purchase homes they are currently renting.
In light of the relative stability of the metro Detroit population, it is likely that average rental rates will not fall significantly from the current levels. In fact, according to recent reports from Crain's Detroit Business newspaper, rental rates have increased by 1.9% on a year-over-year basis. Thus, over the long-term, home sale prices should increase to reach equilibrium with the rental market. Using the rental market as a guide to the underlying value of homes in the area suggests that home prices should appreciate by 200-300%.
--
This article helped me think more about why there has never been a better time to get in on real estate investing. It is important to not only think of what is going on right now, but the great appreciation my rental houses may have in the future. I have always heard buy low - sell high. Today’s economy and this article help reinforce that.
Taylor, I. (2009, January 5). Why, Today is the Perfect Time to Invest in Real Estate, Part 2!. Retrieved March 28, 2009, from http://ezinearticles.com/?Why,-Today-is-the-Perfect-Time-to-Invest-in-Real-Estate,-Part-2!&id=1849782
Thursday, March 26, 2009
Memphis Real Estate
Welcome to our new blog. We look forward to interacting with like minded people who are interested in the Memphis RE Market. The Uptown Group is a full service real estate investment firm that was founded in June of 2004. We specialize in "tailor made" investment portfolios with a passion for customer service. Memphis is one of the hottest markets in the nation curently and it is time to capitalize now. You can contact us at info@theuptowngroup.com. Please stay tuned for more Uptown News!!!
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