Guest Blog Post by Darrin Garman, CCIM
One of the things that I hear over and over again is how bad the real estate market is. For example, just heard a few days ago that home sales are down 27% (in the USA) – largest in history I think.
I am not surprised.
In this email I don’t plan on getting into the “why’s or why not’s” of this, rather, I want to answer the question that I think is at least in the back of most people minds right now.
IS REAL ESTATE A GOOD INVESTMENT RIGHT NOW?
My answer: IT DEPENDS!! 
Ok, let me be clear. I think it depends on where the property is, the dynamics of the property and the local marketplace. I know this is a general statement and there may be other factors for sure, but it does depend on what is going on locally.
For example, I own an apartment property in a very small community where the largest employer right now is laying people off. Do you think that I am looking to buy another property right now in this community? Of course not – right now is not the time.
Maybe if the price I could pay could be discounted so much for this THEN I might look and weather the storm but in an every day situation – probably not.
OR…
I just purchased (with partners) a large project in a great location, in good condition in an economically vibrant community that has a terrific track record and room to realistically raise the cash flow even higher. This was a no brainer for me – even in a time where many say that real estate is not a good investment. This one will be a big, big winner.
So, there are definitely areas you want to avoid at this time, no doubt about it but it is not a situation where you want to avoid ALL of it because there are some nice projects that can be had right now
- IF – you know what to look for.
More on this in future guest posts.
Have a great day.
Darin
