Realtors for Investors

The financial times right now may seem dark and bleak and frought with fear - however it is an exciting future that we are going to be having!  The most recent Wall Street Journal Article on 11/17/2008 discusses something that has never happened before - the G8 actually has a G20 meeting.

What I have not seen in all the negativity is that the future is exciting.  Look at all the incredibly powerful things happening for the first time in the world.  Instead of the top 8 economic powers, the top 20 are meeting.  For the first time in the history of Humanity - we are all facing a majore crisis together and we are working together to chart a new course, a new future!  The Human capacity to have things be different is unimaginable.  We are able to do anything that we put our collective minds to.   The 44th President of the most powerful nation on the planet looks different than the last 43.  The world is facing an economic crisis - together and there are many “never done before” things happening that will give us a different future.

So, what does it mean for the financial future?  Some things will be just like the past - the cycle will do what cycles do - lots of money will be lost and a few will get very wealthy during this time.  So you might say what does this have to do with income real estate?  The exciting thing is that people who have income real estate will make more money as the market turns around.  During the tight times their rental incomes will have provided a nice dividend return and then when the market goes up, their value of their real estate will go up - thus having a great return.

The current times are the tight times and people do still need a place to live.  Additionally, they will pay those bills because you can live without electric, but you don’t even need electric if you don’t have a roof over your head.

People will seek more safe, reliable, understandable and secure investments - income real estate is one of the safest, most reliable, easy to understand and secure investments.  People will more and more understand that a nice alternative to stocks - this investment they can touch, feel, see and most importanty have control over the profitability of.

Yes - the future in imcome real estate is very bright.

For people that are cash buyers or have IRAs, 401Ks or othe investment vehicles, please contact the team at Legacy Real Estate for us to answer your questions as well as work with you to have you make money and keep it safe and secure.

I think this time will go down as one of the best times to have invested in income real estate!  An investment property will generate rents & can operate like the dividend on a stock.  However, I can’t go and paint my stock certificate or upgrade it if its not paying rent (or a dividend).  Right now the market is slow and Cash buyers can get investment income properties cheaper.  When the market recovers, as all cycles do, investors will have received a decent return on their cash while it was generating rents & then a “bonus” return by the price of the building going up.  This understanding of the multiple facets of investing in real estate are what make it fun & a time tested alternative to the stock market.  The team of professional real estate agents at Legacy Real Estate work with cash buyers in finding them great, low hassle properties in safe neighborhoods. 

As of Friday, October 10, 2008 - The Dow Jones Industrial Average (DJIA) is down 40.3% since October 9, 2007.  This was showcased in an excellent front page article in The Wall Street Journal on Friday October 10, 2008.  In fact seeing that article motivated me to lead a Free 60 minute Seminar on “Smart Places to put your cash in this scary and confusing time.”  I am hosting the first one at Legacy Real Estate offices - 800 Bethlehem Pike, Erdenheim, PA 19038.  The seating is limited so if you are interested - please call 215.836.8000 to reserve your spot.

In the last 100 years, there have been 3 major bear cycles.  The Great Depression lasted for 13 years from 1929-1942.  The second one lasted 16 years from 1966-1982.  This one started in 2000 and who knows when it will end.  What many people don’t see is that a 40% drop in the DJIA will now take an 80% increase to get back to 0%.  There is a new base and that base is now what has to rise by gains at a rate of double the loss just to get back to the same old base.

The reliable time tested alternative to the stock market is rental/income real estate.  Rental income properties don’t have the volatility of the stock market.  Even if the value of the property drops, the return based on rental income doesn’t.  People can use cash, self-directed IRA’s, 401Ks and othe vehicles to buy specific real estate that can generate a 6-15% return.  Think of it like buying a stock for the dividend that it pays out. 

That’s what rental income properties provide.  Except there is more reliability in receiving rents than receiving a dividend right now….  Then, when the price of the property goes up, there’s an even higher return.  this is why rental income properties are a reliable time tested alternative and the smart place to put your cash in this scary and confusing time. 

Restaurants are the easiest way to revitalize a business district!  Many upscale communities and towns, like Alhambra, CA have discovered this is one of the most effective ways to revitalize, maintain or raise the level of the area.  People that have had success in one community, like South Beach in Miami, Fl are now able to duplicate what works in other communities like the Miami Design District.  Even in Haddonfield, NJ (2004 Best of Philly: Revived Shopping District)  Restaurants played a critical role.

It is restaurants that can create traffic, the traffic brings retailers and then it is simple math….  The higher the demand, and since real estate is fairly limited in supply, the price goes up!  It is a developers/investors dream - rents go up, as rents go up, values go up.  Everyone wins! The community, neighboring businesses, property owners, investors and most importantly the Consumer!

After spending several years in Chestnut Hill being on most of the Boards and Committees (Business Association, Marketing Committee, Business Improvement District VP, Parking Foundation, Community Association VP, Aesthetics, Development and Review, Physical Division VP) I have personally seen so many reports and surveys that say the same thing - More Restaurants!

Having personally brought the Chestnut Hill Coffee Company, Bocelli’s Fine Italian Cuisine, Cuba Restaurant and Gallery all on the 8600 block of Germantown Ave. - I can see the difference it has made in bringing more foot traffic to Chestnut Hill.  This is one of the benefits of being an owner, investor & developer.  The Community Response has been powerfully positive!  This is especially evidenced by all the customers that are coming to these restaurants.

Restaurants bring people out to enjoy the finer things in life!  The simpler things that create fulfilment.  A good meal with family, friends, business associates.  A great cup of coffee, along with a bag of freshly roasted coffee beans (that were roasted on site on the 2nd floor) at a place that has now received International Recognition as a premier botique roastery.  In a location like Chestnut Hill, Upscale Restaurants and an award winning Cafe (Chestnut Hill Coffee Company) provide for more of the Community meeting, greeting and congregating.  It means people don’t have to leave their neighborhood to get fulfilled and they can bring others to their own community.

Want to make a difference and make money - look for opportunities like this to capitalize on where everyone wins!