One of my real estate passions has been personally investing in real estate and helping others to build wealth for their retirement, their children’s college education, and their enjoyment. Our team of specialist can help you in purchasing residential and commercial properties, offering you first class management so that you have truly passive income without everyday involvement, and mortgage and insurance help which gives you turnkey investment opportunities. Out goal is to make this as easy as possible for you so that you can take care of family, your job, and your leisure time, without having to sacrifice what is important to you daily.
The first question we ask you is how much risk do you want to take? Anytime you put out money for any kind of investment you are taking risk. As a general rule, real estate is a lower risk proposition that the stock market. Is has less swings in value even though it has that potential. Remember, you are investing in Oklahoma, not California, Florida, or Nevada. Our market has less swings of value as do the above cyclical market. Your investment here is comprised of appreciation and cash flow. One can be off a bit while the other is climbing. When they both climb as reflects our current market condition. Your rate of return is overall greater than other investments even in a flat market. Sure you can go lower risk with a CD, but don’t you want to exceed the rate of inflation? Important note: Oklahoma is a long term hold so this is not a “flipping market”. We are a market for the conservative long term investor.
Above I mentioned internal rate of return or IRR. This is a measure of return on investment as long as the money stays in the investment. On all purchases we will do a spread sheet detailing expenses, income, and estimate of future value. This enables you to make an informed decision as to whether you investment in real estate or something else like stocks, bonds, mutual funds, etc. If mutual funds yield you a 10% IRR on 7 years versus 18% for real estate, that helps you make a decision combined with the risk factor. I don’t care where my return comes from as long as it is the best I can receive at the risk level I dictate. Typically real estate will be that.
The third parameter for investment decision making in real estate is absorption rate, or given current purchasing numbers, how long would it take to sell all the inventory in that category. A neutral market is generally accepted to be 6 months. Anything below is seller biased and good for appreciation. Anything above reduces the prices because buyers know they have sellers competing and price is controllable. Some current market conditions like Florida, Arizona, and Nevada have anywhere from 1 to 10 years of inventory! This creates a strong downward bias on pricing. It is not just foreclosures that do that, it is always supply and demand. Important note: Oklahoma is about a 5.5 to 6 month inventory which is balanced. We are one of three states that did not go down in average price in 2007.
So what do we have to offer? We primarily recommend new construction because it offers higher rents, better tenants, and less maintenance. It also has energy efficiency features that reduce the utility cost which help us achieve our higher rents. We have condo and town home projects going up in Norman by the University of Oklahoma, and Owasso, a high end suburb of Tulsa. We are currently building duplexes in Bartlesville, Oklahoma, home of Conoco Phillips, and soon we will have town homes in Lawton, Oklahoma to help with the housing of the 16,000 people coming to Fort Sill from El Paso Texas because of the base realignment. We are also now offering office condos in Oklahoma City, and two suburbs in Dallas which are now being built. If you are interested in an equity position in a Choice Hotel Extended stay, we have 50 locations in 7 states to choose from. We can help you with short sale existing properties, and apartment complexes.