Some Words of Advice: Proceed with Caution

23 November 2018

Some Words of Advice: Proceed with Caution

Just catching-up on a jammed-up email inbox.
And just for the hellovit here's something from KLCG, Kasten Long Commercial Group that might be good to take a look Please note that this post is neither a promotion for the company's advice nor an endorsement
> it's for information purposes only.
NOTE: UPCOMING TOWN HALL MEETING ON
OPPORTUNITY ZONES Proceed With Caution

IS there a change in the wind? Is there anything that can go wrong with this multi-family and commercial heyday we are having? The answer is, “Of course!” And there are many of us who wish we’d listened more carefully to the warning bells during the approach of the last ‘downturn.' But the economics and fundamentals are still strong and are delivering sustained values with continued demand for apartment ownership. Conditions are definitely changing today, and the changes are happening very quickly. This should cause a prudent investor to take heed.

While jobs and economies boom, the stock market is sliding FAST. Global economies have already started their slow down. Oil is tanking and the near-term fallout from trade tariffs is only now beginning to show. A new agenda in congress and more rate hikes from the Fed are certainly no assurance of expectant prosperity. “But Real Estate is fine,” you say. And SO IT IS--For now...

What is the message? If your plan is longer term with emphasis on cash flow and ownership and you are prepared to wait it out until the next expansion phase comes along, then relax. Otherwise, one may be well advised to ‘take a profit and move on’ given the combination of uncertainties on the horizon. But wait, shouldn’t we be fussed about perfecting a 1031 exchange? “What about capital gains taxes?”, you say. Ask some of those folks who kept on exchanging right into 2007 to save 20% or 25%, only to lose 100%. The party has been going on for almost 8 years now with each sale higher than the last. Maybe it WILL continue. Are you willing to bet your equity on it?

Either way it’s best to know today’s value of your property. We can help provide this key data for you and what else is happening in the market.