Hey you! Yea you! The one who's been listening to Fox News, or CNN, or whatever your poison. The world is not coming to an end. Sure, our economy has changed more for the worse than better. Sure, as citizens we are having to make lifestyle changes. Okay I hear you and understand... I'm feeling the same. However, all is not bad. As a matter of fact, I just updated my chart for manufacturing index and realized a nice surprise, manufacturing has increased after a six month decline. Now if one was to evaluate our market then they would use lots of factors and I can do that, but then what would I have to write about the next time! If you are interested as many have already requested, email me and I'll send you my entire real estate dashboard with many charts. My email is sduffey@eysterproperties.com and put "Dashboard Request" in the subject line.
Friday, February 27, 2009
Warehouses On the Mend
Hey you! Yea you! The one who's been listening to Fox News, or CNN, or whatever your poison. The world is not coming to an end. Sure, our economy has changed more for the worse than better. Sure, as citizens we are having to make lifestyle changes. Okay I hear you and understand... I'm feeling the same. However, all is not bad. As a matter of fact, I just updated my chart for manufacturing index and realized a nice surprise, manufacturing has increased after a six month decline. Now if one was to evaluate our market then they would use lots of factors and I can do that, but then what would I have to write about the next time! If you are interested as many have already requested, email me and I'll send you my entire real estate dashboard with many charts. My email is sduffey@eysterproperties.com and put "Dashboard Request" in the subject line.
Friday, February 20, 2009
Wednesday, February 18, 2009
Auto Bailout, Again
I know this isn't really about Alabama or even commercial real estate, but dang, I just had to put my two cents in. I just read that GM and Chrysler are asking for more bailout money. I called it in an earlier blog posts (HERE) and again (HERE). Maybe I'm not such a dumb guy after all.
Anyway, when will it stop. If you have a bad business plan no amount of capital injection will ever solve the problem over a long term. Sure, free money is great! I'd love a million bucks. Anybody... Anybody... But, if I go squander it on bad investments i.e. expensive boats, cars, and other crap - you pick your poison - I will soon run out. The same is true for a business. I'm not saying that GM or Chrysler are spending money on junk like boats and cars, but they clearly need to revamp their plan. I mean, I may not be such a dumb guy (see first paragraph), but I'm no genius either, but if you spend more than you make, there is no profit. If there is not profit, you may want to change something to make a profit, right?
I also remember a Chinese proverb that I once thought was in the Bible... "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime."
Anyway, when will it stop. If you have a bad business plan no amount of capital injection will ever solve the problem over a long term. Sure, free money is great! I'd love a million bucks. Anybody... Anybody... But, if I go squander it on bad investments i.e. expensive boats, cars, and other crap - you pick your poison - I will soon run out. The same is true for a business. I'm not saying that GM or Chrysler are spending money on junk like boats and cars, but they clearly need to revamp their plan. I mean, I may not be such a dumb guy (see first paragraph), but I'm no genius either, but if you spend more than you make, there is no profit. If there is not profit, you may want to change something to make a profit, right?
I also remember a Chinese proverb that I once thought was in the Bible... "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime."
Friday, February 13, 2009
Wednesday, February 11, 2009
The Real Estate Expert: Bottom Fishing
Big fish are at the bottom right?
I hear of that these days. Speculators seem to be diligently searching for the bottom of the market. I deal in real estate, but many markets are performing similarly these days so the same applies.
First, is a bottom bad? Not necessarily. It creates a great environment for the purchase of undervalued assets. I know, I know, I'm an optimist! However, the truth is, a lot of folks have made fortunes by purchasing assets at just the right time.
Next, is seeking the absolute bottom the best strategy? Possibly not either. By the time the bottom actually hits much of the quality product has been picked off by other buyers. Therefore, one strategy is to intentionally seek out the "pre-bottom". Hmm, sounds easy right? Likely not. However, if timed right, you may see a short-term decline but over a longer term the high quality asset tends to survive better in all market conditions.
Remember, this analysis is part science and part artform. There are moderate amounts of fact that support instinctual assumptions to gauge the peaks and valleys. Also remember perfection is not the goal. The odds are against you, but a skilled analysis will get you close enough for successful investing.
I hear of that these days. Speculators seem to be diligently searching for the bottom of the market. I deal in real estate, but many markets are performing similarly these days so the same applies.
First, is a bottom bad? Not necessarily. It creates a great environment for the purchase of undervalued assets. I know, I know, I'm an optimist! However, the truth is, a lot of folks have made fortunes by purchasing assets at just the right time.
Next, is seeking the absolute bottom the best strategy? Possibly not either. By the time the bottom actually hits much of the quality product has been picked off by other buyers. Therefore, one strategy is to intentionally seek out the "pre-bottom". Hmm, sounds easy right? Likely not. However, if timed right, you may see a short-term decline but over a longer term the high quality asset tends to survive better in all market conditions.
Remember, this analysis is part science and part artform. There are moderate amounts of fact that support instinctual assumptions to gauge the peaks and valleys. Also remember perfection is not the goal. The odds are against you, but a skilled analysis will get you close enough for successful investing.
Wednesday, February 4, 2009
Birmingham Quick Facts
(1) Mountain Brook, a Birmingham suburb, is the tenth most likely town to be hit hard by the financial crisis. The basis of this claim is that 18.66% of the population is employed in the FIRE sector. If you are not familiar with the definition of FIRE, it is Finance, Insurance, and Real Estate. (Source: Business Week)
(2) Birmingham, Alabama is the second highest multi-family market based on most-improved annual effective rental rate growth which is 2.00% from 3Q07 to 3Q08. (Source: Axiometrics)
The above facts were taken from the Commercial Investment Real Estate magazine January/February edition. This is a publication fo CCIM candidates and designees.
(2) Birmingham, Alabama is the second highest multi-family market based on most-improved annual effective rental rate growth which is 2.00% from 3Q07 to 3Q08. (Source: Axiometrics)
The above facts were taken from the Commercial Investment Real Estate magazine January/February edition. This is a publication fo CCIM candidates and designees.
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