real estate market

January 22, 2015

Pull the trigger and ride the bullet.

If you are going to fire a gun, there is an old saying:  Pull the trigger and you ride the bullet. In other words, you take full responsibility for what happens not just at the time when the bullet blasts out of the muzzle of the gun, but for the entire flight of that bullet–where it goes, what it impacts, and beyond. In real estate investing, responsible investors practice this principle.  They know full well that they, NOT someone else, is responsible for everything that occurs on/in/around their units.  In addition, they are responsible for making sure that they have the financial resources available to fix things that go wrong, replace parts that wear out, and the shear guts to make the tough decisions. Also in real estate practice, responsible agents practice this principle.  It has become quite fashionable for agents to provide counsel to Buyers and Investors on the […]
February 3, 2015

How to Maximize your Rental Revenue from real estate

Each landlord we work with has a unique problem—filling their rental vacancy.  On the surface, It may seem like a unique problem to only this industry.  But when you apply business topology, the problem becomes quite common. In fact, there are at least 3 other industries who have almost the exact same problem. Unsold inventory. Billboards, hotels, and airlines all HATE unsold inventory because the moment when time passes, it is utterly worthless. As soon as the date changes on a hotel room with vacancies, that hotel cannot make up the lost profit.  Same with the radio station with unsold advertising slots for radio commercials. Same for airliners that taxi and take off with seats missing rear ends sitting in them. Same for landlords. Which is why we are a strong proponent of aggressive and early marketing of properties with vacancies coming up soon.  Think about the math here…. If you rent a […]
July 18, 2015

Fewer Renters Can Afford to Own–Great news for Landlords!

As real estate investors, opening up the Wall Street Journal can sometimes cause a panic attack. But in June 2015, this article came out giving most investors a sigh of relief and even a tingle down their leg. Spoiler Alert:  You’re going to make good money for a number of years to come if you play the market smart. http://www.wsj.com/articles/new-housing-crisis-looms-as-fewer-renters-can-afford-to-own-1433698639 Here’s a few bullet points if you don’t have time to read the entire article (but please read it eventually…) The U.S. homeownership rate is below where it stood 20 years ago when President Bill Clinton launched a national campaign to encourage Americans to buy homes. Conventional wisdom says the rate, at 63.7%, is leveling off to where it was for decades before the housing-market peak. The declines reflect a surge of new renter households, which is boosting rents. Together with tougher mortgage-qualification rules, this will leave households stuck between homes they […]
August 17, 2015

Are Residential Rental rates going up?

This is one of the Top 3 questions asked whenever I speak with Landlord and Investors. The answer to this simple question is anything but simple. As with any measurement, the answer is always two words:  It Depends. It depends on how you measure rental rates and what data points you are using.  Below are some of the ways we track this information on the portfolios we manage: Rent per square foot New Move-In rental rates Renewal rental rates Year-over-year blended rent inflation:  This is a method of tracking rent rate growth based on rent growth for new move-ins and renewals.  It ‘blends’ the first two rates since both rates operate off materially different consumer behavioral patterns. Stabilized Occupancy: While this is not exactly a measure of rental rate direction, it is a worthwhile tracking mechanism to observe how a portfolio is performing.  This is the occupancy level reached by a […]
August 24, 2015

Your Rental property is not worth what you think it is…

August 24, 2015 Today’s New York Stock Exchange activity was historical. Ouch. We may be in for continued volatility for the near term in the equity markets, which reminds me of how this relates to your rental properties… When I speak with new potential clients, the conversation usually goes something like this…. Property Owner: “I’d like to rent out my house, but I need to get at least $1500 a month because we bought it at the height of the market in 2008 and owe too much on the mortgage still to sell it. Can we get that amount for the house?” Me: “Well, according to the market comps and the demand for your house, I don’t think we can get anything higher than $1300 a month.” Property Owner: “But you don’t understand. I NEED $1500 a month in rent.” Me: “I certainly appreciate your needing to maximize the revenue […]
March 9, 2016

Housing Market Recovery–Split like Charles Dickens classic….

Today’s WSJ published an article about the US Housing Market recovery diverging into two recoveries.  Reminds me of the Dickens classic a bit…. Essentially, lower priced inventories are vanishing fast while inventory on the higher end piles up.  While on the surface this might seem like “Economics 101” (and it does reflect some of that light) there is more to the story, especially as it relates to your rental portfolio positions and future purchases. WSJ Housing Market Takes on Split Levels 030816. Here’s some of the highlights from the article: On the low end, after a slow recovery from the housing bust, first-time buyers are finally returning to the market, bolstered by still-cheap mortgages. But after years of little new construction, inventory is still tight. High-end buyers, meanwhile, are more sensitive to the stock market’s struggles this year.           So…..how does this information impact your rental […]
May 25, 2016

April 2016 Rental Stats–Indianapolis markets

Good afternoon, everyone! We’ve updated our monthly market report for Indianapolis and all the surrounding areas.  Click the link below for all the April 2016 stats! Dan Baldini Rental Stats 2016 Indianapolis markets
May 31, 2016

Young Adults choose living with Parents vs living with a romantic partner

Times they are a changin’……again. A new study by Pew Research Center shows that young people are choosing to live with their parents in a higher amount than ever before in modern history….even higher than living with a romantic partner. Why the change? Pew researchers suggest several factors, including declining employment among young men in recent decades and lingering effects of the recession. But the researchers said that the chief reason is a “dramatic drop in the share of young Americans who are choosing to settle down romantically before age 35” either with a spouse or a partner.  “Forming a new family is not nearly as important as it was for young adults,” said Richard Fry, a senior researcher with Pew, a nonpartisan think tank that conducts public-opinion polling, and does demographic research. So what does this mean for Landlords and Investors?  It could mean the following: Your rental properties with a target demographic of this age group may be tougher to fill due to financial constraints of the tenants moving out of […]
June 7, 2016

May 2016 Rental Stats Indianapolis Area

The rental market for the month of May was a busy one with brisk leasing activity and a lower Days On Market (“DOM”) for most market areas, but not all market areas. Here’s the full report:  Indy Rental Stats May 2016 Happy Investing!
July 30, 2016

More Good News for Investors and Landlords

NPR just posted this short recording clip containing some new conclusions on Rental Rates and, more importantly, Tenant Behavioral patterns. Take a listen as it’s music to your ears as a Landlord and Real Estate Investor.  It’s barely 4 minutes long but it’s jam packed with nuggets of knowledge. The retirement to the beach just got a lot closer, folks. If you are not aware of what your portfolio pricing should be, please get aware.  Golden opportunities like this don’t come around often in investing cycles. Here’s the link:  http://www.npr.org/player/embed/487470787/487522888?sf31908941=1 Your Financial Freedom awaits….