MARKET UPDATE

The Wall Street Journal recently reported "bidding wars" for homes in certain markets.  Declining inventory coupled with historically low interest rates are contributing to the current market conditions.  The upward trends in home sales as well as slight price increases are causing some analysts to believe that we have "passed the bottom".  Inflation concerns are prompting many investors to move capital to hard assets such as Real Estate.  And, with Real Estate at bargain prices, many believe that profits are almost certain as the market recovers.

Town leaders have been pleased to see the transformation of a failed townhome project into a thriving community.  And, investors will enjoy an excellent return on their investment.  

What is "Group Investing"?

For Investors who want to take advantage of bargain real estate prices but may not have the time or inclination to locate, reposition, and manage the asset, Group Investing may be an appropriate alternative.  Investors join a "group", generally by acquiring shares in a Limited Liabilitiy Company (LLC).  The LLC is formed for a specific venture and is professionally managed for the investors.  The manager generally receives a fee plus percentage of profits.  Investors normally receive a "preferred return" plus percentage of profits.  Depending on the property type, profits may be taxed at Capital Gain rates and investors could enjoy tax benefits through depreciation.  By joining with others in a "group", your investments can produce income, growth, or both.  First Federal Properties has formed Group Investments to acquire distressed properties and loans.  The asset is repositioned, then held for long-term income and growth, or sold for short-term profits.  Investors have enjoyed annual overall returns of 15% to 30% or more (returns are not guaranteed) with very little risk.  If you would like more information, please contact us.

Brad Bowman, CCIM

Brad@FirstFederalProperties.com