Monday, October 06, 2008

Rental Incomes... Still Strong

If you are invested in the rental properties in vital markets you are not feeling the pain that wall street is feeling today.

Rents are Strong. Tenants still are making the rent. The rent roll is still paying the mortgage and insurance and taxes and the management upkeep.

The rental housing providers I know are sill receiving the positive cash flows that their investments were providing prior to the 2008 drop in the stock market.

No wall street type will tell you to take your money out of his control and give it to anyone else to help you diversify. They do not know any other investment. But you, who have some real cash to invest and a future to protect, need to take a portion of your wealth and invest in Real Property. Rental Property. Income Property.

Today's Cap rates and Gross Rent Multipliers are looking better and better.

Residential property can beat almost any recession investment.

How much! How much to Wall Street? How much to income producing land?

Risk is a chance to loose some value. But Whole companies go down to ZERO. Never does an apartment building go to Zero. Real insurance policies (as apposed to swaps/derivatives etc.) insure that your building will get built back up if hit with a typical disaster of fire etc.

Professional portfolio managers (CFP's) charge a few points to manage your money. And people like me as your Real Estate Agent charge a reasonable percentage to manage your tenants and pay the bills for the performing asset. I bet as a percentage of value a property manager is much less expensive than a money manager. I'll check on that.

What type of property would you like to own? A big building with partners? Medium or small building on your own?

Sincerely Keith Lambert
310-391-0821
www.REList.net

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