Beating A Down Housing Market (NAPSA)—Eventough markets can open the door to real estate opportunities—the key is to find ways to hedge your investment. For instance, Real Estate Pro- fessionals say that as markets dip, multifamily properties can become more profitable due to increased demandfor rentals. Indeed, for the past five years, the fastest-growing segmentof the apartment rental market has been households making $50,000 per year or more, according to the Urban LandInstitute. “As the economy slows, families often downsize from a single-family home or townhometo an apartment to better manage their budget,” explains Scott Casselman, cochair of the Coldwell Banker Commercial Multifamily Group. “That creates opportunity for mul- tifamily apartment owners.” But what about when markets turn back around? Casselman says multifamily ownersare still covered. “When the economytakesoff, people tend to upgradetheir lifestyle, allowing real estate developers to reposition older apartments and increase rents or build new apartments with higher rents.” He offers these tips for investing in multifamily properties: Location, Location, Location The old adage remains true, but that’s not to say you can only buy within a certain location of a city. Rather, buy within an area or submarket in which you or your management companyfeels comfortable operating. Management Matters The most important part of the equation for a multifamily invest- ment is asset management and specifically the on-site property manager. Provide the property manager leeway to make operational decisionsto be successful. Real Estate Professionals say multifamily properties can build value in tough markets. Make Money On The Buy You can make money by buying distressed assets, caring for them and then selling at market rate. You are also providing a service to the community by cleaning up properties that are undermanaged and have significant deferred maintenance. Casselman also has tips for condo owners concerned about the fate of their investment. He says to not panic and to come up with selling incentives rather than dropping yourprice. “Offer lowestprice guarantee to reduce buyer’s remorse.” Finally, if you did make a mistake in buying a property, don’t be afraid to admit it—as that can cost you more in the long run. Instead, seek a Professional Mul- tifamily Advisor that has a track record for solving your specific circumstance. For more information, visit www.cbeworldwide.com and its multifamily client services.
