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INVESTORS’ CORNER: Real estate investors need stability in the housing markets

You’ve not seen me around as of late because I’ve been busy. Doing what you ask? Investing in the future -that’s what! Despite the oppressive rhetoric & rules our misguided politicians dish out, the over-bearing paperwork & regulations needed to keep our government at bay (locally, State, and Federal), and the great uncertainty in our American economic engine, I am investing in the future.  What is my #1 investment? Real Estate

It’s real estate that is hitting several of my positive economic indicators. While most are filled with doom & gloom, demand for good quality housing, both at the rental investment level & rehab-to-retail level is there. No, you say! That’s fine, just keep telling yourself that.

I’ve not been this excited since the last full year of our ‘go-go days’ (2007) in Charlotte, NC.  We are at the beginning stages of Stability in our housing markets. That doesn’t mean that we might not drop another 5-10% in valuation over the next year. In fact, if you have to sell an investment property, the probability of pain can be great -unless you truly know how to buy at a wholesale discount. As real estate investors, all we need is stability in our real estate markets. From there, we can analyze with more certainty of the time it would take to sell one’s real estate. When we can calculate that (with great certainty), we can calculate a reasonable market value given a reasonable time to sell. From there, we can calculate a true wholesale value, reflecting any cost of funds & repairs. Yes, we can all agree there are a lot of strong currents going this way & that; however, crawl out of your comfort zone and analyze your local housing market. There are pockets of real estate investing that are working. We’re seeing rehab-to-retail, rentals, and the beginning stages of wholesaling work in our local real estate markets. When wholesaling works, it’s a sign of stability as it is a free-flow function of supply & demand of investor flexibility & beliefs.

Grow slow, but don’t turn your back to an investment that provides one of the most basic needs of our day-to-day living. Invest in that which everyone is running from: Real Estate.

Tyler McCracken is an active member of the Metrolina Real Estate Investors Association, www.metrolinareia.org, which provides education, networking, and mentoring to investors in the Greater Charlotte area. Tyler has been actively investing in residential and commercial real estate in Charlotte, North Carolina since 1994. He can be contacted at Tyler@graydoginvestments.com.

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