|September 04, 2017||The Real Deal Update-September 4, 2017||no comments|
THE REAL DEAL UPDATE. 1031 EXCHANGE PROPERTIES SELLING AT THE FOLLOWING LOCATIONS AT MULTIPLES OF 15-22 X’S YEARLY INCOME. *SEPTEMBER 4, 2017.
Buyers are educated investors. Many have multiple properties for decades. The ones who adjust for the times, continue to be successful while the rest lose ground, meaning passing up building after building because they are stuck with their own formulas of multiples.
Ridgewood Buildings by Train stations are the real deal right now. Hot is not the word that describes the reason why so many are renting apartments at new record levels. Can you imagine buyers offering 18-22 x’s income on 6 families by Fresh pond rd. or off Myrtle Avenue all because of the trains? And yet many buyers pass up buildings at 16 and 17 x’s income in the same locations, why?
Is it old fashioned ways? Is it the formula that worked for them in the past? Tens of thousands didn’t adjust at one time in Green point. And look at what happened there.
College students from out of State sharing apartments with parents guarantying the leases today as many of you already know. So be aware. Be open to modify your thinking. Make your adjustments in formulas. And if you come across a 12 family brick that is in Pristine Condition, by the train with over $186k income, it really is smart of you to bid or consider 16-17 times income these days.
Jim Turano /Broker-Diverse Real Estate 1-347-837-9206
73-12 Metropolitan Avenue, Middle Village,NY 11379
*Celebrating 38 years in the Business*