Showing posts with label investments. Show all posts
Showing posts with label investments. Show all posts

Saturday, April 5, 2008

Profiting From The Market Misery











I love a down market. All this uncertainty has property values dropping faster than a womanizer drops a date that says the "L" word.

The statistical figures are starting to show some significant drops - in the 20-30%ranges - and I don't see daylight yet.

I like this NNN leased investment. It's got a lease guaranteed by CVS corporate. It's 2.3M and returns a 12.58 cap rate. Unheard of only 2 years ago!

Or 48 units in Los Gatos for $12.22M, net income of $568,277 and 4.61 cap. based on actual rents. Just a year ago we were seeing 3-4 caps based on proforma rents.

So, there are a lot of investment opportunities in the market. It hasn't been this great a time to buy since 1993-1994! If I only would have kept the house I bought in 1993, in willow glen, for $172K.....

Sunday, March 2, 2008

The Glamorous Landlord Life

People think that since I own income property, I live the rich and luxurious life. So, let me just give you a glimpse into this cushy job.

First off, I am a professional, have been doing this more than 20 years, and I ought to know better than to manage my own property.

The first issue is that whenever you see a tenant you think it's a problem - when normally it's just a great friendly tenant that wants to say "hi" and catch up.

Second, there is always something that needs fixing.

Third, I hate evicting people.

So, this trip to Dallas was a quick four day jaunt. I had two tenants that were behind and it was an opportunity to touch base with my Dallas contacts.

Thursday I flew in. Met with my handyman about the work done this last month and went to dinner with clients.

Friday, I filed eviction on one tenant and a judgment against another, I broke into the abandoned property, assessed the damages, hauled all his junk out to the garbage can - including melted fudgesicles in the freezer, put out the "for rent" sign, made calls for bids and had dinner with colleagues.

Saturday, I chatted with tenants. Got some bids, shopped materials. Got new keys and a lockbox on the door, collected rents and went to the bank.

Sunday, after church, I checked on a NNN Investment that looks VERY promising, I cleaned my apartment, did the laundry, replaced a key, changed a mailbox lock, got new blinds and a mercury vapor light bulb for the security light and chatted with tenants before I hit the airport.

Sure, I love the weather in Dallas. I went running two out of four days, ate at some great local restaurants, read, worked with clients in San Jose and enjoyed the heck out of my time. I wouldn't change one bit of my glamorous life.