updates

January 21, 2015

Have Rental Rates become Unaffordable?

  Is the party almost over for Landlords and Real Estate Investors in residential rentals? Rental rates across the US, Indianapolis metro area included, have been on a consistent tear for a number of years now….Landlords have benefitted allowing the asset prices to get bid up on both rental properties for sale. However, just like with everything in life, there are limits…. Here’s a good article that takes both a granular and high level approach at looking into this pending issue…. http://nreionline.com/multifamily/rent-burdened-nation-housing-expert-discusses-affordable-housing-crisis Certainly, if your local market conditions allow, maximize your rental revenue whenever possible, but keep this knowledge on your radar as we may be witnessing a market shift in rental rates. If you haven’t repriced your properties lately or done a competitive analysis, now may be a good time to get this information gathered. As always, if we can assist, call or click.
September 8, 2016

Are we in another Housing Bubble already?

  Kids like bubbles.  Even dogs like bubbles. Real Estate Investors typically don’t like bubbles.  But it doesn’t have to be that way if you think about it…. A recent article on CNBC highlights the possible statistics pointing to another Housing Bubble for specific States and Cities in the US. However, unlike the last major bubble, the underlying forces causing this bubble are distinctively different. Here’s the full article link:  http://www.cnbc.com/2016/08/29/were-in-a-new-housing-bubble-why-its-less-scary-this-time.html My favorite Take-Away paragraph from the entire article is this…. “Rental demand, especially for single-family homes, is very strong and is an attractive income stream for individual investors and current homeowners. As millennials age into their prime homebuying years, more than ever before they are choosing to rent single family-homes, because they either don’t meet mortgage credit requirements or are unable to save for a down payment because rents are so high.” So, if you’re worried how the housing […]
November 15, 2016

Should You Sell All Your Rental Properties?

ARGGHHHHH!!!!! Economic uncertainty is nobody’s friend but lately, if you watch the talking heads and read the mass media pundits, you would think the world is coming to an end and the rapture is here. I’m not so certain these folks are using the correct lens to look through for their prophesies…. This article by David Lynn, Ph.D., covers some of the flight and self-preservation concepts very nicely.  He also reminds the reader that business is a cycle with repeatable stages of peaks, contractions, troughs, and expansions. “So where are we now?” is the BILLION dollar question, isn’t it? Here’s Dr. Lynn’s conclusion for those of you who don’t care to read the entire article: We are in a very unusual situation in that the normal pattern of oversupply has not occurred in this real estate recovery. This bodes very well for the real estate market. Over-supply has always killed […]
November 22, 2016

Year End Planning Questions

Tick Tock…..time stops for nobody. We are quickly approaching the end of the calendar year and for most investors and property managers that means the end of your tax year, too. As such, it’s time to consider how to best wrap up your 2016 for maximum effect towards your Financial Freedom.  Here’s some boxes to flip up the flaps and peer into: YTD P&L:  Yes, it seems like this should be self-evident.  But after counseling hundreds of investors and property owners, what constantly comes across is how frequently this review gets skipped, especially when profits are strong.  However, doing a quick review now is beneficial to compare the P&L to past years to confirm if any expenses are perhaps out of line–both too high and too low.  Both can be valuable indicators of something to dig into deeper.  (Sidenote:  To get a quick and accurate ROI on your property’s profitability […]
January 24, 2017

December 2016 Rental Stats

2016 is complete. Another solid year for Landlords and Investors. Here’s the full year of the sixteen (16) markets I track for the Indianapolis rental market. Indy Rental Stats YTD   Enjoy! Dan      
February 7, 2017

2017 outlook for SFR Owners

“There is a shortage of quality rental housing.” Fist pump time if you’re a Landlord or Investor. That’s the overall opinions of some of the top managers of large, institutional portfolios of single family residences (SFR).  Here’s the link to the brief article:  http://nreionline.com/single-family-housing/top-sfr-owners-plan-grow-2017 It indicates, if demand for SFR’s remains stable, that rent prices should remain solid and absorption rates should be strong.  What it also, indicates however, is that these same large institutional portfolios have new targets–YOU. As a smaller operator of SFR’s, you are seen as the enemy. You’re the competition. You’re who they want to gobble up or squash out of the rental game. So here’s the question for today: These portfolio managers have the spare cash, the human resources, the advanced technology, and the patience to crush you.  How do you plan on continuing to compete against them? Go Guerrilla Warfare style against them. Here’s […]
July 7, 2017

All is Well….Nothing to See here….

Unemployment is down.  The Stock Market is soaring.  Everyone is happy. But should they be? It’s times like these when that trusty Spidey-sense starts to tingle…play the real estate investment game long enough, and you see the telltale signs of impending mayhem ahead: Everyone and their brother suddenly thinks real estate is easy money.  (We can tell by the phone calls and referrals we get on this qualitative point.  And the calls and referrals are coming hot and heavy right now….) Folks who shouldn’t be buying rental properties are buying them up faster than Fidget Spinners. (Always a dead give away when the question gets asked,”How many months of PITI do you have in reserve for when this property goes vacant?” and the buyer has that deer-in-the-headlights-look.) Banks easing their lending standards to allow for more marginal buyers. (No income, no doc loans are back.  Yes, seriously, they are.) Yup….it’s […]
July 13, 2017

Good legislation….finally.

The Indiana General Assembly finally passed clarifying language on occupancy standards. If you’ve had to battle this issue with prospective tenants applying for your property, crack open an adult libation to celebrate.  This new language offers you better protection from Fair Housing lawsuits alleging discrimination due to disparate impact against families with children. Beginning on July 1, 2017 the below state-wide occupancy standard will go into effect. Sec. 7. (a) The residential landlord-tenant statute (as defined in IC 32-31-2.9-2) does not prohibit an owner or landlord from refusing to rent a rental unit on the basis of a reasonable occupancy standard. (b) For purposes of this section, an occupancy standard is presumed reasonable if: (1) it permits two (2) individuals per bedroom; and (2) the owner or landlord: 9100 Keystone Crossing, Ste 725, Indianapolis, IN 46240 (A) does not include infants less than one (1) year of age in the […]
July 25, 2017

Meet your New Landlord: Wall Street

The Backstory to Now…. Clients who hire me to coach them before and during their first investment property transaction ask how and when and where all the money came from Wall Street to buy so many thousands of rental homes.  Answering them takes patience and detailed explanations as this is the first time in history such a platform of investment has occurred on such a massive scale. This WSJ article does a solid job of discussing the backstory, the history, and leads with some hints about where the industry of property leasing is headed.  After all, big investors have plopped $40,000,000,000 into buying 200,000 houses as rentals. Some questions for you to ponder as you read the article: As a small, private investor:  How can you compete with these powerhouse-landlords on pricing, marketing, and profit margins? As a property manager:  What lessons can you take away from the article on […]
October 4, 2017

Rental Fraud–The Good, the Bad….ok, there is no good about it.

Rental Fraud continues to be a scourge on the real estate industry. By attending this educational event, REALTORS will learn: What Rental Fraud is and why it occurs How to recognize it when it occurs How to protect your Seller and Landlord listings if it occurs to You How to protect YOUR REPUTATION if it occurs to Your listings How to report it to the authorities Hosted by Eastern Division of MIBOR. Looking forward to seeing everyone there!