{"id":971,"date":"2007-01-30T06:50:10","date_gmt":"2007-01-30T13:50:10","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=971"},"modified":"2007-01-30T06:50:10","modified_gmt":"2007-01-30T13:50:10","slug":"the-savvy-investor-watchouts-for-new-market-investing","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/971\/the-savvy-investor-watchouts-for-new-market-investing\/","title":{"rendered":"The Savvy Investor: Watchouts for New Market Investing"},"content":{"rendered":"

You may have noticed my absence Thursday and Friday, while I was in sunny Greensboro, North Carolina (sunny as oppose to Ithaca, NY). While the trip was a short four days, I met tons of contacts and had a very interesting introduction to the market. There are so many things to talk about, I am going to break them up by topic and try to write them up over the next couple of days. Today, I want to talk about the savvy investor.<\/p>\n

I began the journey meeting my agent at the airport. I worked very hard in selecting an agent that I thought would offer me a good look at the market, with an objective opinion on pricing. My goal is to always try to choose an agent, who has experience in the market and is hopefully equally savvy (or more so). <\/p>\n

The first problem I encountered right away was a language barrier. I thought cap rates were the universal language, so I assumed that all commercial pricing would be based on local cap rates. Wrong! My agent informed me that the pricing assumptions in Greensboro were based on an assumed appreciation rate of 1-2.5% a year. Interesting… As I stretched my mind to try to understand this concept, I made an assumption that rents would be increasing by at least that or that despite what I saw with my eyes there was a rush on small apartments in Greensboro. Of course, neither was the case. <\/p>\n

Interestingly enough, when I made some calculations based on my own models most of the properties I looked at were in the 6.5-7.5% cap range. Although the rates seemed very aggressive for the Greensboro area, every property I looked at fell into this range. My next stop was a commercial mortgage lender. As I sat down in his office, I wondered if everything I had learned in life and in school did not apply in the town of Greensboro or if other investors were just plain crazy. I say this specifically because of all the properties I looked at only one of them was actually Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

You may have noticed my absence Thursday and Friday, while I was in sunny Greensboro, North Carolina (sunny as oppose to Ithaca, NY). While the trip was a short four days, I met tons of contacts and had a very interesting introduction to the market. There are so many things to talk about, I am […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,8,5],"tags":[],"class_list":{"0":"post-971","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-investment","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7636,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7636\/its-springtime-in-madison-wisconsin-the-trees-are-in-blossom-the-students-are-protesting-and-i-have-a-no-fee-referral-for-an-investment-savvy-agent-who-works-like-a-bloodhound\/","url_meta":{"origin":971,"position":0},"title":"It’s Springtime in Madison, Wisconsin. The trees are in blossom, the students are protesting — and I have a no-fee referral for an investment-savvy agent who works like a Bloodhound…","author":"Greg Swann","date":"March 31, 2009","format":false,"excerpt":"An old friend, very smart, very good with numbers, has landed in Madison, Wisconsin. He's sitting on way too much cash, and he realizes he needs to capitalize that dough before it gets inflated away to nothing. That much is a silver platter. Deep pockets and unlimited future earning power,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3104,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3104\/how-a-realtor-can-work-with-a-real-estate-investor\/","url_meta":{"origin":971,"position":1},"title":"How A Realtor Can Work With A Real Estate Investor","author":"Barry Cunningham","date":"May 12, 2008","format":false,"excerpt":"It\u2019s no secret to most Realtors that the housing market is in the toilet right now, but there is still a group of aggressive buyers who are still quite active. The Real Estate Investor. While the mere thought of working with investors causes some Realtors to cringe, it\u2019s time for\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"Real Estate Radio USA | Real Estate Investors","src":"https:\/\/i0.wp.com\/www.realestateradiousa.com\/blog\/wp-content\/uploads\/2008\/05\/investor.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":964,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/964\/964\/","url_meta":{"origin":971,"position":2},"title":"Touchdown in Greensboro: What makes a good investment?","author":"Cooksquared","date":"January 29, 2007","format":false,"excerpt":"The rubber has finally hit the road. After a lot of researching, speaking with agents, and working with mortgage brokers, I finally touched down in Greensboro. Armed with financial models, a few perspective properties, and a lot of appointments, I set off to find a good investment. Today, I want\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14249,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14249\/i-have-a-no-fee-referral-for-a-hard-working-listing-agent-in-minneapolis\/","url_meta":{"origin":971,"position":3},"title":"I have a no-fee referral for a hard-working listing agent in Minneapolis.","author":"Greg Swann","date":"March 1, 2011","format":false,"excerpt":"Mom has moved to managed care in sunny Arizona. Daughter and son-in-law need to get the old family homestead sold. Zip code is 55418, and it looks fairly near into town. Zillow has it at $147,000, decent money if you're willing to work. But: You'll need to be a hard-working\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14277,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14277\/if-you-have-any-time-to-spare-from-catching-all-those-paper-fish-on-twitbook-i-have-a-no-fee-referral-for-a-bloodhound-in-mckinney-texas\/","url_meta":{"origin":971,"position":4},"title":"If you have any time to spare from catching all those paper fish on TwitBook, I have a no-fee referral for a Bloodhound in McKinney, Texas.","author":"Greg Swann","date":"March 4, 2011","format":false,"excerpt":"My tenth house for this year is closing today, and I may be leasing up my two vacant rental properties between now and five o'clock. I know, I know -- I'm missing out on all those wonderful paper fish on TwitBook, but my experience is that paper-fish chowder doesn't make\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2202,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2202\/a-consumers-guide-to-the-divorced-real-estate-commission-cataloging-benefits-starting-with-a-complete-catalog-of-available-homes\/","url_meta":{"origin":971,"position":5},"title":"A consumer’s guide to the divorced real estate commission: Cataloging benefits — starting with a complete catalog of available homes","author":"Greg Swann","date":"November 10, 2007","format":false,"excerpt":"Part IV: Divorcing the real estate commissions will result in benefits not just for buyers but also for their agents and for the real estate market as a whole The National Association of Realtors is embroiled right now in a protracted anti-trust suit brought by the United States Department of\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=971"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/971\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}