TO EVERYTHING (EARN, EARN, EARN)...THERE IS A SEASON (EARN, EARN, EARN)... That's how Pete Seeger and The Byrd's famous 1962 hit, "Turn, Turn, Turn" could be rewritten for the financial markets of late - earnings season kicked off last week, with several reports delivering music to the economy's ears. I have always been an Earnings person. Not a speculator. Whether a stock or a property. What is the cash flow? It must be positive after taxes.
Last week, the week began with the sweet sounds of investment banking giant Goldman Sachs reporting earnings that were much better than expected. More good news from the financial zone followed, with better than expected earnings from JP Morgan Chase and Citigroup. As you can see in the chart below, the financial sector has clearly been helped by the recent mark-to-market discussions and easing of the FASB ruling. In other sectors, big players Google and General Electric also reported earnings that were higher than anticipated.
And more good news last week, as Fed Chairman Ben Bernanke sang out that there are signs that the sharp decline in the economy is slowing, indicating a potential "first step" towards a recovery from the worst recession in a generation. Specifically, he said, "I am fundamentally optimistic about our economy. Today's economic conditions are difficult, but the foundations of our economy are strong, and we face no problems that cannot be overcome with insight, patience, and persistence." While last week's Retail Sales Report came in lower than expected, indicating that consumers are still keeping a good grip on their wallets - Bernanke's words certainly inspire some economic confidence.
Confidence for the Banking Industry may now help loosen up the lending side a little. Now that new mechanisms’ are in place for apartment building buyers to have to qualify under the best news for us would be a relatively simple way to gauge how the lenders will view the investment property and how much new financing it will receive.
There are some buyers out there. There are some realistic sellers who recognize the market has changed. Now then, are the lending sources ready?
**If you are in the lending side, please hit Comment button below and let us know what you are able to finance. Apartments / Income Property 5 or more units.**
Thanks all for reading.
Get your lending set up soon. The time to find a good property is soon at hand.
IMHO Keith
310-391-0821
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1 comment:
It is nice blog !!!! I like also
With Old Man Winter upon us, building an outdoor living space — such as a deck — might not seem like a particularly appealing proposition for many homeowners. But as the housing market continues its downward slope and the economy slumps in a recession, building a deck can be a smart way for property owners to maintain or even improve their home's value. After all, it's less expensive than building an additional room but still enables homeowners to expand their living space. "It's safe to say that a deck is one of the more cost-effective things you can do," says Robert Markovich, home and yard editor for Consumer Reports. "Decks are really a high-return item."
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