1 May 2009
The bad news: the recession drags on; continued uncertainty in the American and global economies; shrinking labor market; volatile stock market; dismal housing market; and so on and so forth.
The good news: regardless of the situation of the market, there is always an opportunity. You just have to know how to look for it.
One of our guiding principles for real estate investing has always been to look beyond the price of the property, and closely focus on the market that the property is in. The term "emerging market" tends to get thrown around a lot, and not enough people truly understand what this means. So let's go back to the fundamentals for a brief review.
Some of the questions that you want to ask when you are considering a property or market:
* Demographics
o How many people are moving in/out of the area?
o What is the average income of people in a 1 mile radius of the property? A 5-10 mile radius?
* Economic Development
o Is there a diversified, established, and growing economy?
o What is the local government doing to attract additional companies to the area?
* Affordability
o What is the average income vs. average housing debt/rent?
o How does the average rent in the property of interest compare to similar properties?
* Rental Market Trends
o What are the vacancy rates in the area of interest?
o Are similar properties in the area offering concessions to new tenants?
* Infrastructure
o How much money is being spent on infrastructure in the area?
o Are there major thoroughfares near the property of interest?
* Undervaluation
o How much lower is the purchase price compared to the replacement cost?
o How many opportunities are there to add income (which adds value) to the property?
This is by no means a comprehensive list, but if you find a market or property that meets this criteria, you know you're on to something worth spending more time and effort to do additional research. At Capital Growth Investment, we only promote markets and investment opportunities that meet this very basic criteria, and are again pleased to present another market for your consideration: Tulsa, Oklahoma.
Approximately 99 miles from Oklahoma City, Tulsa located in the northeast portion of Oklahoma, and is the second largest city in the state. It has a well-diversified economy, boasting employers in a variety of sectors, including energy, aviation, health care, high tech, and telecommunications. The city is spending a tremendous amount of resources to further develop infrastructure in preparation of continued growth, and consistently ranks very highly in national polls as an appealing place to live and work. It has a highly educated community, offers a strong mix of blue- and white-collar jobs, and is well-positioned to weather this national recession and emerge as one of the major economic forces in the country. The synthesis of all the things that make Tulsa an attractive place to invest, combined with the uncertain national economy, creates the opportunity.
Capital Growth Investment is currently in acquisition mode, and we are targeting properties in all of the markets that we promote, including several opportunities in Tulsa. We are acquiring only B and C class assets, as we believe that A class properties will experience increased vacancies and decreased income. Due to the current stranglehold that the commercial finance market is in, only stabilized properties are considered; it's better to acquire two stabilized properties with 25% down payment, than it is to acquire one distressed property for the same amount of cash.
Under Contract... and Funded!
* Tulsa, OK
* 45 units
* Off-the-MLS
* Purchase Price: $1,295,000
* Current Monthly Income: $20,500
* After raising the under-market rents, and bringing in new tenants at the market rate, we project the monthly income will go to $26,000
* This deal was fully funded by our investors within 48 hours after the purchase contract was signed!
We have Other Multi Family Investment Opportunities Now!
Open to Only a Limited Number of Investors, so Act Now!
If you would like to know more about our property offerings, or learn how this investment vehicle works, contact us directly.
Tulsa In The News
Click the link to read the full article:
Tulsa Named Best Place To Live in the U.S. : http://www.gtrnews.com/greater-tulsa-reporter/3817/tulsa-named-best-place-to-live-in-the-us
Best Cities For Jobs: http://www.forbes.com/2009/04/14/best-medium-cities-jobs-opinions-columnists-employment_slide_10.html?thisSpeed=15000
America's Most Livable Cities: http://www.forbes.com/2009/04/01/cities-city-ten-lifestyle-real-estate-livable-cities_slide_12.html?thisSpeed=15000
Questions? Comments? Contact Us!
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Ofer Goldenberg is the CEO of Capital Growth Investment
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