2013: The Liberal Supermajority and Your Continued Success. Can they co-exist?
2013: The Liberal Supermajority and Your Continued Success.
Can they co-exist? Part 2 of 3
By: Nicholas A. Dunlap
This is Part 2 of 3 of my 2013 Commercial Real Estate Outlook. Please note: I have been right on 100% of my predictions for 2011 and 2012. Don’t believe me? Read 2011 and 2012 by clicking on the respective years.
- Refinance, Please
We have record low interest rates that should remain low due to our underperforming economy. If you did not in 2012, please take the time to do so in 2013. The opportunity will arise and you will want to have cash on hand to move on additional real estate investment opportunities. Prepare yourself now by refinancing and holding on to your funds. Be conservative and do not over-leverage yourself.
- Look Outside of California
If you have bought or sold multifamily property over the past year, you know how hot the market is. Yes, hot as in multiple offers and above list price when priced right. Good news: there are a number of markets outside of Californiathat have continued to improve. Do you like Arizona, Nevada, Texas? There are opportunities worth considering. Not to mention, they lack the political wildcard and liberal influence.
- Raise Rents (Again!)
Understanding market data and communicating effectively is the key to success. Talk to your Broker, call your neighboring property owners and put together an updated rental survey. Chances are your competitors have increased their rents and have all but abandoned concessions. It’s time for you to make those changes as well. Even with the depressed values in the for sale housing market, renters in Orange and Los Angeles Counties remain priced out of becoming first time homeowners. Preserve the income stream at your property and raise rents again.