Real estate Tips

Everyone hasallheededthe real estate axiom: location, location, location. For investors it is really situation, situation, situation. Situation is the mixtureof:

• proper timing
• ideal area
• the bestcapabilities

There’s an example in every town: a decent commercial building on a busy street corner with easy access and good parking. It’s a decent building but it’s usually vacant. If a new business moves in, it’s gone within a year. Down the street was a multiple business property, includinga specialty bakery. Location couldn’t carry the bakery. Next, a neighborhood diner moved in.The diner does well since the owner picked a good location and facilitated the accomidations correctly. That’s the right situation.

In multifamily investing, situation is the combination of:

• the right location: Are you entrustingin

  the pathof progress

  or

  declining neighborhoods?

• proper timing: Are you investing in marketsin:

  recovery… expansion

  or

  contraction… recession

• abilities: Do you have:

  adequatetactics… abilities; a professional team; economicassets

  or

  insufficientskills … experience; a go-it-alone plan; no financial reserves