We often evaluate properties for investment purposes here at the Tallahassee Florida Real Estate Blog
. Having done so for years, we have learned, discovered, and compiled some great models that can be learned by anyone.
Today, let's take a look at a model that I refer to as the Real Estate Stack
. This is the most basic of measurement models which allows an investor to take an investment and convert it to a mathematical model so that it can be compared with all other investment opportunities.
Too often, I see "wanna-be" investors wanting to go look at properties. Personally, I never like to go look at investment properties until I've already seen the numbers potential. If the numbers are not super attractive, then looking at the property is not only a waste of time, but it also brings in the opportunity for faulty decision making through emotional attachment. I would...
Recently, a reader of the Tallahassee Florida Real Estate Blog going by the name "Jim" asked "
Joe, Can you do a subdivision workup for Bull Run?"
Jim, you asked this question on the perfect day. Not only was I interested in knowing how Bull Run was doing, I also got hit with a case of writers block and really didn't know what to cover today. So here it goes.
Bull Run in Tallahassee Florida
According to the Leon County Tax records, home sales began in Bull Run in 2005.
||Avg. Sales Price
|2005 - 1st Qtr
I am helping an investor buy an investment property in Tallahassee today. With most people concerned about the market and choosing to be sellers, he likes to "swim upstream" and so he has moved to a buying position in the Tallahassee real estate market. I figured our selection process might make for an interesting blog post. The simplicity of what he is doing has caused me to realize that sometimes our fears cause us to miss the obvious signs of what we should do. But as he reminded me, the return in real estate is found in long-term, leveraged appreciation. Too many investors think the money is in speculation or in the "flip," whereas seasoned investors like to watch the appreciation build up. So, today's Tallahassee Real Estate Blog will feature a home for sale in Tallahassee. This is a real home that is completely renovated and will draw rents of $1,250 to $1,300 per month from the market. And because it has been completely renovated,...
Today's posting on the Tallahassee Florida Real Estate Blog
will be short and sweet. I've just come back into town and have a lot of catch-up work to do.
I've been out of town since Thursday and the first thing that I want to know is whether or not we've seen a directional change in the residential inventory in the Tallahassee real estate market
. The easiest way to do this is to go to the Tallahassee Real Estate Market Bulletin and check the graph. If the yellow section is below the zero line, then inventories are finally dropping. If the yellow is still above the zero line, then we are continuing to add inventory.
As we can tell from the graph above, our sixty-day trend is still "above the line." This means that our residential inventory in the Tallahassee real estate market
is growing by about 2 homes per day.
I am looking forward to the day that we see the yellow band drop below...
Thank you everybody for the great feedback from yesterday's blog about price reductions in the Tallahassee real estate market.
As I am on the road, this will be a brief update about yesterday's conversation regarding a price-reduction page coming to the Tallahassee Florida Real Estate Web Site
. Please preview the draft format by clicking the link below.
I would love some feedback on the fields displayed in this table. I'm not looking to make this a comprehensive project, but if you have ideas on what could make it better, please provide them in the comments section below.
As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all...
Today is a travel day for me. I'm heading to Chicago and will getting to see some of the real estate in the great Midwest.
As I sit here and write this in the airport, I am listening to the people sitting near me discussing their recent purchase of a home in Tallahassee. While I know that eavesdropping isn't exactly good form, I am pleasantly surprised at the optimism that I see in them about the real estate market in the next few years. You see, they felt that prices had come down to the levels they were right before the boom, therefore buying today is just like being able to buy a home in Tallahassee in 2005.
So that gave me a great idea. What if I could create a "Price Reductions" page on the Tallahassee Florida Real Estate Web Site
that would allow our readers to have a way to see properties that might becoming "great buys." For example, here is one example of a great buy that I...
Perhaps the question that I get more often than any other is "What do you see happening in the future of the Tallahassee real estate market
Unfortunately, I do not have a crystal ball, but I do have data on hand that has been recorded since 1991 and I'm thinking that there might be a way to extrapolate a housing consumption
estimate for the future by looking at what has happened in the past.
I have a housing consumption
formula that I have produced for this blog posting and I would love to see comments from readers regarding any errors in the model or just commenting on the results of the analysis.
My formula has two key points:
º There always exist two types of housing consumers - Discretionary...
This is our third consecutive month of offering our free Tallahassee Housing Report
. The purpose is to provide useful information about Tallahassee Housing
by showing supply and demand across all price ranges in Leon County. This is the most comprehensive report that you will find on supply and demand in Tallahassee because it brings in more sources than just the Tallahassee Board of Realtors Multiple Listing Service (MLS).
So here it is again. This month, we have simplified the Tallahassee Housing Report
by removing a column of information that readers found to be "too busy." We hope you continue to provide feedback to us on this report so that we can improve it each month. If you have any questions on how to read the report, please comment below. Our...
It's all the talk among the real estate blogs. Have you heard?
I had not written a blog on real estate short sales because there is so much out there already. I decided to get up early this morning and see if anybody had written anything that would explain this process to a lay-person (a lay-person in short sales is somebody who owns a home with lots of equity --- humor).
So what exactly is a short sale?
A real estate short sale is when a home gets sold and the proceeds from the sale "fall short" of what the property owners owes on the mortgage(s) on the home. The bank(s) agrees prior to closing to accept a lesser amount than what it is owned. The bank will do this if it feels it will get more money through a short sale than through the timely and expensive cost of a foreclosure action. The property owner will often consider a real estate short sale when the owner receives assurance from the bank the...