Real Estate Investment Guide & Trends for 2020 /

 

 

“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “   I AM YOUR LAND / COMMERCIAL AND INVESTMENT REAL ESTATE SPECIALIST / LOOKING FOR OWNERS & BUYERS. Call me if you want to sell your property and  need an estimated value.   Phone: 480-948-5554     Prefer cell: 520-975-5207 or email me walterunger@ccim.net.       

 

PUBLISHED MARCH 23, 2020

Real estate investment remains one of the most lucrative and assured investments you can make. It just requires an investment of time and learning to unlock its true earning potential.

In this guide, we’re going to look at the market of 2020 in detail; the facts and the figures that will shape the market in the days, weeks, and years to come.

If you’re thinking of investing or you already have and would like to be kept up to date with the latest changes, read on.

Real Estate Investment Guide For 2020

Introduction To Real Estate Investment

Real estate investment is much like an investment in any other industry or portfolio. It has its risks and rewards and has both low-risk, low-return and high-risk, high-return opportunities.

Knowing what kind of investor you are, what you are looking to get out of the investment, and what kind of real estate you are looking to invest in will be the first big decision to be made.

Types Of Real Estate Investment

There are three major categories into which real estate investment falls. They are residential, commercial, and land. Each bracket also has branching subcategories, and it is highly advisable to pick a niche in which to specialize to stay informed and minimize risks.

Residential Investment

  1. Single-Family Rentals

The most common form of real estate investment is single-family rental homes. This includes condos, townhouses, detached houses, and any other category of single-family homes. These properties can either be self-managed or managed by a professional property management company. Typically leases will last for a minimum of 12 months.

  1. Government Subsidized Rental

In the United States, this form of rental is known as a section 8 rental, but there are similar schemes in other countries. This investment is the same as with single-family rentals, with the only exception being that the tenants come from little to no income, and the government will pay all or part of their monthly rent.

These properties can be a guaranteed income source but also come with their specific risks and challenges.

You may get less control and choice in your tenants, and the contracts will be for longer periods with more security and protection for the tenant.

  1. Vacation Rental

This type of property is much the same as that of a single-family home but must come fully furnished and available for much short term rental.

To be profitable, this investment works best in areas with significant holiday appeal, such as near to a lake, beach, or major entertainment hub. Having property like this managed by a property management company is much more common.

  1. Small Multi-Family

This type of investment includes small apartments and walk-up complexes. It is any property that looks to offer multiple leases under one roof and has the potential for strong capital return if properly managed.

Month-to-month leases are much more common, and so turnover can be higher than with a single-family home, but given the areas these properties are usually found, so is the risk.

  1. Fix And Flip

If the wealth of T.V. shows on this type of investment are to be believed, fixing and flipping is an area that provides massive ROI in a relatively small time frame. The basic concept is fairly simple; buy property under-value, add value through investment (upgrade and repair), and then sell for profit. The risks lie in unexpected costs and sudden market fluctuation.

Commercial Investment

  1. Retail

Retail property investment is any form of property that will be leased out to more typically B2C businesses. This includes malls, community centers, shopping strips, or larger stand-alone businesses such as a gas station or bank. Investment in this area is more commonly made through a real estate investment trust (REIT).

  1. Office

As the name implies, investment in this type of real estate is typically the leasing of commercial office space to businesses. There are different classes of office space investment to consider.

Class A is a high-end office space in a desirable district, where rent is usually above average as the building has a certain amount of prestige in itself. Class B is the most common investment and has the highest level of demand.

Class C is a property with a lower standard of finish in older areas of town with a higher turnover and difficulty in finding tenants and retaining them.

  1. Industrial

Industrial real estate means investing in properties used for heavy manufacturing, light assembly, warehouses, and any combination in between. It can be an incredibly stable investment with long tenancies but is one of the most susceptible to tech advancement and sustainability issues.

  1. Multi-Family

Multi-family commercial investments are the same as with small multi-family properties but on a larger scale. This includes high and mid-rise buildings, as well as garden-style complexes and manufactured home communities.

The risks and rewards are similar to that of a small multi-family investment, and it is another area where it is more common to invest together with partners or a REIT.

Land Investment

  1. Land For Commercial Development

Commercial development is land that is acquired with the intention of turning it into commercial development. It will require working with an architect to develop the plans and the local government in order to ensure the appropriate zoning is in place.

  1. Land For Residential Development

Land for residential use is much the same as that used for commercial development. It will require an architect to design and local government to zone. It is common in in-fill areas or by rezoning of other land and undeveloped projects.

  1. Land For Farming

Purchasing farmland offers some great rewards as well as significant risks. Farmland can be purchased and then rented out to be farmed to provide income as other development goals are being pursued. There are also significant tax breaks provided by the government for land in agricultural use.

  1. Land For Mining

Investment in land where there is access to desirable resources makes for a great multi-generational investment. In the short term, it provides cash flow in leasing directly proportionate to the value of the minerals offered.

In the long term, there is a chance of appreciation in goods when the lease is up, and then when the minerals finally run out, development opportunities arise.

Things To Lookout For When Investing In Real Estate

Investing in real estate, like an investment in any area, has a unique set of risks and rewards. Here are just a few of the things to consider before you decide to invest.

“If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”
John Paulson, Investor, and Multi-Millionaire.

Location, Location, Location

It’s the mantra at the heart of the property business, but what does it actually mean?

In the simplest terms, your property’s location is what makes it desirable. Desirability drives demand, and demand sets prices. You could own a mansion in California City that would be worth less than a townhouse in L.A.

If you want to ensure you get the most out of your investment, be sure to pick a home in a central location within your chosen city with good access to roads/public transport.

Choose a good neighborhood with local amenities and services.

A good indicator that it’s a desirable area is how quick the turnaround is on other houses on the market. [1]

The Properties Valuation

A property valuation is a good way to get an idea of its worth. How quickly it will depreciate or appreciate in value is a quick indicator of how desirable the area is.

For existing properties, a common method of valuation is a comparison against similar houses on the market. For new builds, they might tally the total cost against potential depreciation.

Valuation isn’t just important as an indicator of worth, though; it also plays a part in the potential financing options you can apply for and how much, the cost of insurance on the property, and also in the taxes paid. Properties can be over or undervalued, and you should do your own independent research, too.

Investment Purpose and Profit

Before investing in real estate, you need to know why you’re making the investment and what sort of investment it’s going to be. There are many different ways that you can profit in the industry, and it depends on your goals, finances, and the amount of time you can afford to put into the project.

You can profit off of property without actually owning any by investing in property construction or property management stocks, or by investing with a group like a REIT.

If you own a property already, you can invest in your own home and make improvements while you live there to boost its appreciation.

Are you looking for a short-term or long-term investment? How much profit would you be expecting to make the high-value investment worth it?

New Construction vs. Existing

New construction can offer some very enticing investment opportunities in both cost and the ease of the sale. You only have to deal with the construction company and also have the ability to customize the property.

The drawbacks are in the fact that there can be delays in completion, a rise in cost due to unforeseen circumstances, and lack of knowledge about the neighborhood and other developments.

With existing properties, the situation is reversed. You will have to deal with realtors or the seller directly, and due to the fees and desire, you are less likely to come across such attractive pricing.

You will have a property valuation to gauge the investment against and can do extensive research on the area and potential future projects.

Loan Leverage and its Pitfalls

In an ideal world, we wouldn’t need to take out a loan or a mortgage in order to invest in real estate. But in the real world, the high-value upfront cost means it’s basically essential.

There are as many different types of loans and mortgages as there are ways to invest in property, and knowing the market and what you are signing up for can help you reap the rewards and minimize the penalties.

Shopping around is essential; don’t take the first deal offered and use other lower interest rates as leverage to get better deals from companies offering other benefits that work for you.

Do you need a fixed rate, floating rate, interest-only, or zero down payment mortgage? Know what works for you before you start doing the rounds.

Why Invest In Real Estate In 2020

We are currently enjoying the benefits of a buyers market in most major cities and markets, which means it’s a great time to invest.

In the United States, according to the Federal Reserve Economic Data (FRED), the median sales price of houses sold has been falling since 2017. [2] Mortgage rates are also down 1% since their highs in 2018 [2], and the stock market is back to an all-time high with the S&P 500 closing at a 28.9% increase in 2019 [3].

“Ninety percent of all millionaires became so through owning real estate. More money has been made in real estate than in all industrial investments combined.”
Andrew Carnegie, Philanthropist.

All this means is that buyers have great negotiation leverage due to the flood of new developments coming into the market and the still all too fresh memory of the market crash. The real estate market this year is set to be higher in supply and lower in demand than usual.

There is also the fact that in America, it is an election year, and across the globe, various other geopolitical situations are causing uncertainty and fluctuation in the market.

This creates a great opportunity for a smart investor.

SEE IT ALL GLOBALLY AND WITH GRAPHS:    https://precondo.ca/real-estate-investing-guide

Real Estate Investment Guide For 2020

FROM ME:                                                                    

Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group.  I also sold  hundreds millions of dollars’ worth of  Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with  brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land  Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial en.wikipedia.org/wiki/CCIM    I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS,     PLEASE CALL ME –  cell: 520-975-5207 or email me walterunger@ccim.net

 

I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS   

 

Walter Unger CCIM

Associate Broker

West USA Commercial Division

7077 E MARILYN RD.

Suite 200, Building 4.

Scottsdale AZ, 85254

Phone: 480-948-5554

Cell: 520-975-5207

walterunger@ccim.net

I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS  

What is a CCIM.

 

 

 “You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “  ARE YOU READY TO SELL OR PURCHASE YOUR INDUSTRIAL / OFFICE OR RETAIL BUILDING OR YOUR  LAND  in Phoenix, Maricopa County and Pinal County, Arizona, please call me.  Office: 602-445-4113,  , cell: 520-975-5207 or email me walterunger@ccim.net.

CLICK HERE:  Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.

History of Arizona from  900 BC – 2017 -Timeline.

WHY PHOENIX? AMAZING!!!  POPULATION – IN 1950 THERE WERE 331,700 PEOPLE LIVING IN PHOENIX – “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”

PHOENIX TOPS US IN POPULATION GROWTH (MORE THAN LA, NYC) AND WHY THAT’S GOOD FOR THE ECONOMY, BUSINESS

 

8 Reasons You Should Invest in Land

History of Arizona from  900 BC – 2017 -Timeline.

 

WHY PHOENIX? AMAZING!!!  POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”

PHOENIX TOPS US IN POPULATION GROWTH (MORE THAN LA, NYC) AND WHY THAT’S GOOD FOR THE ECONOMY, BUSINESS

DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION

ARIZONA FACTS – YEAR 1848 TO 2013

VIEW ALL OF WALTERS LISTINGS

What is a CCIM.

CLICK HERE TO VIEW MY WEBSITE

  • DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
  • The average age of the population is 34 years old.
  • The health cost index score in this area is 102.1. (100 = national average)
  • Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).

LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17

Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience                                                                                                                         

Click here to find out what is a CCIM:

Click here to view my website:

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Walter Unger CCIM –  walterunger@ccim.net   – 1-520-975-5207  –  http://walter-unger.com

Why Phoenix?  This is a very interesting article, you should read it, amazing, there were only 350 K people living in Phoenix in 1950

Timeline of Phoenix, Arizona history

Phoenix, Arizona

Facts of Arizona – year 1848 to 2013

Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.

Walter Unger CCIM

Associate Broker

West USA Commercial Division

7077 E MARILYN RD.

Suite 200, Building 4.

Scottsdale AZ, 85254

Phone: 480-948-5554

Cell: 520-975-5207

walterunger@ccim.net

I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS  

What is a CCIM.

 

“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “   

Please check maps if your Land or Commercial Property is in the Opportunity Zone, IF SO CONTACT ME / THIS IS FOR SELLER’S AND BUYER’S.

ARE YOU READY TO SELL OR PURCHASE YOUR INDUSTRIAL / OFFICE OR RETAIL BUILDING OR YOUR  LAND  in Phoenix, Maricopa County and Pinal County, Arizona, please call me.

Also Call me if you need an estimated value of your Property.

Call me if you want to see a map with what is in the Construction Pipeline for Apartments.

Prefer cell: 520-975-5207,   or email me walterunger@ccim.net.       CLICK HERE TO VIEW ALL MY LISTINGS.    

 

Check out my professional profile and connect with me on LinkedIn.

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 Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages.  The interactive map  shows the location of each community (10+ units) and each location is color coded by the size (number of total units). 

 Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207

www.Walter-Unger.com

 

Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me.

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