Imagine if there was a market shift in the technology sector that caused all technology stocks to temporarily drop. However, looking at the role technology plays in our modern lives, one could be confident that the prices would soon rebound. The situation just described is an example of undervaluation; or discounted property. It is analogous to the current state of the real estate property market in the United State.
Owning investment property can be time consuming. So much so that it can encroach and even eclipse other aspects of life. It can, at times, feel like a huge time-suck, compromising family time, leisure time, as well as time to extend and grow wealth. It doesn't have to be that way. There are ways to own investment properties, manage them effectively, and maintain their profitability, while preserving time to have a gratifying life.
If you live in Memphis of follow the headlines of real estate news, then you may be as surprised as I am to find every news story written about the real estate market coming from the view point of doom and gloom. Sales are down, prices are down, values are down, buyers are down, my dog is down, my girlfriend left me, my car broke down, my wallet is empty...sorry, I seemed to have gotten caught up in my 'Country Music' moment!
Three research or news organizations have ranked Memphis real estate at or near the top of major real estate news stories over the past few months with a brand new research paper being released this past week showing Memphis as the #2 market in the country for affordability. The Council for Community and Economic Research (C2ER) gathers data from 309 urban areas to rank them in their Cost of Living Index (COLI) and Memphis has always ranked as one of the most affordable cities to live in as well as raise a family and invest.
Real Estate investors should treat their investment properties just like a business and with every business there needs to be time set aside for planning. The entire staff of MemphisInvest.com came together last week to present our plans for 2012 and the owners presented our plan to the staff of new programs, new cities, new hires, new promotions and the exact steps we were going to implement to grow over 60% for the second year in a row! Spending five days together was fantastic for the entire team even though it really shook up our normal routines. Planning for success and sharing as well as involving the entire team was by far the best thing we could have done to start 2012 with a bang!
Heading into a new year is always a great time to take stock of where you are and start preparing for any changes or adjustments you need to make. It's also a great time to educate yourself and real estate investors are not immune to continuing education!
We get asked all the time why we don't send out emails to our entire list of the latest and greatest deals that we have available. That is, after all, the traditional way wholesalers sell their properties. They spend a lot of time getting as many emails as possible, throw those email addresses into an email tracking system and start pounding that list with everything you get under contract. When I get asked why we don't send out houses by email I give two easy answers:
Real estate investing sometimes gets a bad rap from investment advisers. They often prefer REIT's and other supposed easier forms of investing in real estate because it's easy for them to track and control their clients portfolios. I don't begrudge them for that attitude, I just think it short changes an investor and eliminates a very powerful source of income when investors will need it most...retirement.
I wrote this blog after reading an article in the local Memphis newspaper, The Commercial Appeal.
I have been making a concerted effort to keep the numbers up to date each month on here for all our readers and clients. But, I also want to make these posts as a way to give a lot of credit and praise to Premier Property Management. By far, that is the most thankless part of our entire business from staff to clients and we all owe them a big thanks for the effort and attention they give to our portfolios...including mine! There is a reason Premier Property Management is quickly growing into the largest Single Family resident management company in Memphis.
