I received a great market analysis put together by the really smart guys in the home office. I've created a link to the market summary. I hope you like me, can take some useful information from the report. I have read the document which takes a national perspective and already see some factors that don't quite match up with our local economy in Birmingham, Alabama, but overall the facts are very handy to have and continue to watch.
I guess there's no second best for good local knowledge! That's why I still have a job!
Friday, May 9, 2008
Friday Surprise!
Friday, April 25, 2008
Bank Appears to Bail Out Their Own Interest
In a recent article published by the Birmingham Business Journal, the lender for the Capri Condominum project claims to have settled their debt from the borrowers who have filed bankruptcy. After reviewing documents filed with the Alabama Secretary of State, it appears like the filing members of the new owners, Capri Real Estate, LLC, is in fact the lender itself and one other bank. I am not sure if the other bank has been involved all along or not.
Anyway, it's never good news to have to go through the settlement process, but maybe the bank's new equity position will allow them to complete the deal and "truly" close the matters at hand. While they likely don't wish to be developers and prefer the position of comfort as the lender, the unfinished building is a worst-case-scenario. Think of it this way, the building fails to produce ANYTHING if it doesn't reach the stage of an issued C.O.
All in all, this is probably a common practice among lenders who have the misfortune of facing bankruptcy threatened deals and actually the better of few available options.
Hey guys, I'm just digging a little deeper than what was reported in the BBJ article. I hope you, like me, can have a little more knowledge to use in your projects.
Here's Lookin' at You Kid!
Wow! I am amazed the blog is getting around. I just looked up on a stats page and people from 16 of our 50 states are looking at the information I publish. Obviously, there is room for growth, but I am blown away about the support from all you guys and gals. Thank you, thank you, thank you!
The map below shows who's looking:
Thursday, April 24, 2008
Hot Property Downtown
We are offering about 2/3's of a city block between the 5th and 6th Avenues South. The location is well established and offers excellent access to all parts of Birmingham and its surrounding cities and well as other areas of the State of Alabama.
Most of the property is warehouse, but there is also some office and a showroom.
I have more information at the following web link:
LIGHTING AND LAMP INFORMATION
Sunday, April 13, 2008
Return From an Alternate View
Sure a 13% year-one return in a good, growing, location would be awesome. However, these days, that's not a readily available product. For a few years now, investors have been challenged to think a little more about positioning their investments. One strategy, I encourage is to look at a property's rental rate position.
Is the rental rate above the market? If so, it might be hard to demand equal or more rent in the near future. Is the rental rate below market? If so, you might have a good opportunity to raise rent in the near future for a lease renewal or new lease.
Okay guys and girls, this is not a trick question. Generally speaking, if expenses stay constant, for this example, and rents increase, what happens to the bottomline? Net income goes up, therefore, return increases as well.
The idea is not to merely look at rents, however, that is generally a reasonably easy factor. I want to encourage you (and myself), to find alternate views to uncover value in properties. Find your niche. Is it rental rates? Traffic counts? Population density? Starbucks with in a certian distance? You would probably be surprised how some high-level executives approve properties.
Wednesday, April 2, 2008
Should I Form an Investment LLC Group?
When dealing with other investors you might want to consider the following:
- How much do I know about my partner?
- Do they have experience in dealing with real estate?
- Does he have the financial strength to back up his obligations?
- Are our goals in alignment?
- Who makes decisions? How are they made?
- What if there is a conflict? How is it resolved?
Basically, it is important to not enter into a partnership relationship lightly. Partnerships have opportunities for conflict. However, if operated properly, partnerships offer a way to buy larger properties or diversify a portfolio.
Wednesday, March 26, 2008
Update: Green Building
Update to a post earlier this month.
Alabama-based construction firm is developing "green" buildings. An article published by the Birmingham Business Journal states that BL Harbert International constructed $260 million in green buildings.