Real Estate Investing

NBC News reports that the housing market recovery is well on its way. Indeed, more people are buying houses, inventories of distressed properties are down, and prices are moving slowly upwards.

Interestingly, according to NBC, "Current homeowners accounted for 54 percent of October’s non-distressed market, up from 50 percent in June," while first-time home sales are actually declining. "Unfortunately, first-time home buyers are seeing just the opposite, largely left out of this surge in sales and prices. Their share of the market, usually up in the 40 percent range historically, fell to 34.7 percent in October."

For any investor wanting to get started in real estate investing, it is a dilemma. For others, it is a clear-cut issue. If you own investment property, you may feel hesitant to allow renters to have pets inside, especially if you have dreams of keeping that property pristine over time. You may also want to direct your property management company to no allow pets in your properties if you have a management company in place.  However, you may be surprised to find that there are many benefits to allowing animals, and it can even boost your real estate cash flow.  A great article from Karen Aho on MSN Real Estate points out the benefits of renting to tenants with pets while also pointing out that some of the 'best" horror stories are often far from reality.  The story also highlights one of the few if only studies conducted on rental properties and pets and it found that units allowing pets experienced a longer occupancy term, 46 months, compared to those that openly prohibited pets, 18 months. 

Memphis Invest Hosts Real Estate Investors

Real Estate investors from 16 states came to Memphis, Tennessee on October 19th and 20th to meet with one the U.S.A.'s premier real estate investment companies, MemphisInvest.com.  Eighty-Four investors spent Saturday with the company learning about Memphis and the opportunity for real estate investors followed by a quick tour of some completed renovations.  The jam-packed education was followed by a great night at the offices of Memphis Invest and Premier Property Management. 

The most common question I get from interested real estate investors is "Why is Memphis a place I want to invest for the long-term?".  This week, Memphis Mayor A.C. Wharton, Jr. made the answer easy for our company...and every other Memphis company spreading the word about our great city. 

Steve Cook published an article in The Niche Report, a magazine about real estate, mortgages and  financing, today that focuses on the dilemma faced by real estate investors who want to participate in the current market.  Too many investors are being shut out, or at the very least limited in their ability, from the opportunity of buying single-family homes.  

In today's changing economy, the definition of smart investment choices is changing. According to one recent news story, the expected annual yields for investors in the stock market is significantly lower than it has been over the last century. Rather than returns close to 10 percent, investors can expect closer to an average of five percent yields in the foreseeable future. 

The jury is out about whether the housing market recovery (or lack thereof, depending on your perspective) will have any impact on this year's presidential election. According to a recent CNN Money article, the housing market is showing some significant gains in swing states such as Florida and Nevada, which could certainly play a role in electoral results.

Real estate is being added to the investment portfolios of Americans and more are looking for real estate to provide a passive income stream in their retirement years.  

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.