LA City politics. No on Mesure B

At election time I allow myself to make recommendations. I feel that the City/State/Federal regulations and taxes affect your and my real estate and are therefore fair game for this blog.

Often the best vote is NO on many things. It only should be Made Law or funded for the public good IF it is overwhelmingly agreed on as needed and worth it.

So that said, please see these two links. After reviewing them, you too will agree Measure B should get a NO vote.

The Cover Up Continues
http://www.citywatchla.com/content/view/2034/

and

Union Members: Solar Plan Not Cost Efficient
http://www.citywatchla.com/content/view/2035/

OK so Real Estate has gone down some in the market.

I work in a different market place for investments than what is commonly referred to as "The Market" that usually means a stock market trading a piece of paper that represents an interest in some company or asset. When I deal with Investment Properties we are dealing with an asset that you get a real title too.

Compared to the over valued paper being peddled by wall street for the last few years, Income Real Estate is rather secure.

Yesterday in the LA Times Business section...
http://www.latimes.com/business/la-fi-commre20-2009feb20,0,4393076.story

This story says Commercial Properties are down 15 %
and that Apartment Buildings are down 11.5 %
in the nationwide averages.

Not bad compared with all that stock market stuff.

Just read your last 401 K report and compare the amount you are down. Then think about how much you are diversified if it is all with a Fidelity account or E-Trade. No matter how much it is spread around in the stock market it is still the stock market. Some of your net worth needs to be in a performing real asset like an apartment building if you want a secure long range future.

With today's prices now in a bit of a "Market Dip" it may be possible for you to use your cash to pick up a sound investment for your future. If you are not retiring in the next 2-3 years Income Property should be in your portfolio.

Call me to review the options.

Keith Lambert
310-391-0821

What makes a good starter investment property?

On Sunday I toured several properties with clients looking for a starter investment property. We looked at sites Downtown, Midtown, and Mid-Wilshire.

8 units or 6 units or 4 units all with good strong rent rolls that bring in a healthy revenue stream. 8 units with dilapidated conditions. 6 units in good condition in so so area. 4 units in a sweet area in clean condition.

All three have the potential to work. All three have pluses and minuses. The key is what will keep the revenue up best in a market where rents are sagging? Which one will a lender be more likely to give you better terms and easily fund. (Lending is very important today, more later) Which one will give the best appreciation down the road? And be easier to sell?

At some point one must move out of your starter property and roll into a bigger better apartment building. Hope is that the 1031 exchange will then produce real income for reaching your financial goals.

Keeping those goals in sight is important when weighing the questions above.

Keith L.

*hit Comments to weigh in on what is most important to you.
Revenue flow/lender marketability/manageability/appreciation/resale-ability