Bluestone and Hockley Real Estate Services

UPDATED 09-MAY-2012

This article sums up the following important topics that directly affect the multifamily investors:

~New law (passed in last session) affecting NOAA and public health commissioned employees
~Fair housing test audits
~The mold crisis of 2012
~Window guard redux…[...]

UPDATED 14-MAR-2012

The answer to that question centers on how many tenants are in the marketplace and do they have a job to pay the rent?

Jobs Outlook
It looks like the unemployment rate in Oregon is dropping…[...]

UPDATED 2-FEB-2012

As we begin 2012, all real estate investors need to pay very close attention to the ever changing tax landscape. Particular attention needs to be paid to the significant tax increases slated to occur in 2013. Investors considering whether or not to sell and pay their taxes, or sell and 1031 Exchange, must consider the year-over-year tax implications. Real estate investors will have a much greater tax burden in 2013 than in 2012…[...]

UPDATED 11-NOV-2011

On October 21st, the commercial real estate brokerage of Sperry Van Ness | Bluestone & Hockley held their first semi-annual investors forum, Charting The Northwest Multifamily Marketplace: How To Thrive In The New Reality at the Multnomah Athletic Club in Portland, Oregon. An audience of 160 attendees filled the room to hear Scott Selke, Director of Financial Services for PPR Global Research/CoStar Group, Inc., Clyde Holland, Chief Executive Officer and Chairman for Holland Partner Group, and Robert Noble, Senior Vice President & Multifamily Real Estate Executive at Sterling Savings Bank, discuss the current state and future of the Portland and SW Washington multifamily marketplaces…[...]

UPDATED 7-NOV-2011

Typically when investors consider purchasing an investment property, they inspect the property as part of their due diligence and also review the proforma income and expense reports provided by the seller. In addition, the investors review the rental income and expenses to make a decision according to their comfort level and ability to raise cash (i.e. obtain financing to close the transaction)…[...]

UPDATED 13-SEPT-2011

Setting the stage:
Owners who are selling their real estate assets are doing so for many reasons:
Large Class-A properties (“core assets”) are currently achieving high premiums upon sale.
Partnerships are breaking up because investor partners need money.
Many properties bought in the run-up (2005-2008) are not performing so sellers must unload, even if they have to take a loss…[...]

UPDATED: 1-SEPT-2010

We’ve all heard the old adage about selecting real estate to invest in…look for ”Location, Location, Location”.

In today’s market we think that needs to be modified to “Location, Location and Cash Flow”. There are numerous properties on the market that if evaluated with this new adage in mind will build value for those looking to grow their wealth through real estate ownership…[...]

UPDATED: 08-July-2010

As real estate investors, we know that every day brings a new challenge:

Tenants do not perform
Roofs leak
There is mold
The economy tanks

I believe that real estate investors (and their property managers of course) fight fires everyday and should be issued fire helmets and jackets to protect themselves and their assets…[...]

UPDATED: 13-Apr-2010

TIC Investors

In this very dynamic real estate market TIC (Tenant in Common) investors have suffered as the market has weakened. In particular, those real estate investors that joined TIC investments in the last four years, (at the top of the market) are finding that in some locations, high vacancy rates and plunging rental rates are squeezing their cash flow and their ability to pay their mortgages…[...]

UPDATED: 08-Feb-2010

Real estate investing needs a long term vision. As individual investors we save money, purchase real estate and try to increase our portfolio over time, hoping that by the time we retire, if not before, the cash flow from the investments might pay for college for our children and then pay for a comfortable retirement…[...]

UPDATED: 07-JUL-2009

Bluestone & Hockley Real Estate Services has for a very long time only offered commercial real estate brokerage services. As with most businesses these days, we’ve had to modify our business model and have branched out into the brokerage of select residential properties. For us this means representing Banks and Servicers selling their foreclosed inventory and working with Investors to acquire homes for rentals.[...]

UPDATED: 12-MAY-2009

The biggest challenge for real estate investors right now is access to money to finance or refinance their investments.

This newsletter will summarize financing options for different kinds of property to help clear some of the smoke in the financial air. Bear in mind that we are in a fluid, ever changing market place. [...]

UPDATED: 06-APR-2009

As a real estate investor setting aside a reserve fund is always a good practice. Not only is the economy unpredictable, so are the weather and your tenants. How do we evaluate how much to set aside? Let’s review some of our risks.[...]

UPDATED: 10-MAR-2009

par·a·digm

1. One that serves as a pattern or model.

paradigm \s for investing

As real estate investors our world has changed.

Our paradigm has shifted. Once American Investors were the kings of leverage. 10% percent down, 20 % down, 25 % down were the currency that was used to purchase real estate. [...]

UPDATED: 01-JUN-2008

As the stock market attempts to work its way out of its funk, and the national economy slows down, we are faced with decisions involving the transfer of investment dollars from the stock market into real estate.[...]

UPDATED: 01-FEB-2008

What do the following states and territories have in common?

• Alaska
• California
• Commonwealth of Northern Mariana Islands
• Guam
• Hawaii
• Idaho

[...]

UPDATED: 01-DEC-2007

Baja Mexico – an area surrounded by water- with flat lands and mountains, covered by sand and cactus is home to Mexicans and vacationers alike. Those that love sun, come here. A recent visit unravels fascinating details.[...]

UPDATED: 01-OCT-2007

Most buyers and sellers of real estate look at 1031 exchanges as an option as they consider their investment agenda. They figure that they defer paying state and federal capital gains taxes and depreciation recapture until they die and their estate goes to their spouse, charity, their children or grandchildren. They may also be able to stave off the alternative minimum tax that might sneak up on them if they were to sell a property.[...]

UPDATED: 01-SEP-2007

• By 2010 over 40% of all households will be comprised of an age group over 55 years.
• The number of citizens over the age of 65 years will jump from 34.7 million in 2000 to nearly 70 million by 2030 (a mere 30 years).
• The Spanish speaking population will increase from 31.4 million in 2000 to nearly 65.6 million in 2030.
• 50% of children under the age of 18 (42,853,649) will be a minority in 2030. Total US population is estimated at 400 million in 2030.
• The traditional household (married couple with children) which comprised 90% of the households in 1950 will comprise only 65% of the households in 2030.

UPDATED: 01-MAY-2007

After years of flat rents and increasing costs for apartment landlords, rents are finally increasing.

You may ask, “What is driving this sudden change?” Just twelve months ago, landlords were faced with vacancy rates of 12%-15%. Rental concessions drew tenants from one property[...]

UPDATED: 01-DEC-2006

We had just taken off from the Portland airport, and I was getting comfortable in my seat. Well that’s if you call getting comfortable negotiating with your neighbor’s elbow. [...]

UPDATED: 01-SEP-2006

As baby boomers get older and closer to retirement, and the stock market continues to underperform, many investors have been driven to real estate investing. This demand has created a “boomlet” that has significantly increased the pricing, and thereby the purchase cost, of real estate in many parts of the United States. [...]

UPDATED: 01-AUG-2006

As an owner of investment property your ideal is to not have to worry about your property. You go on vacation, you work overtime, you retire to Bali and your property keeps making money for you. [...]

UPDATED: 01-JUL-2006

For years we have been hearing about the real estate mantra, “location, location, location,” but is that really what drives the success of an investment? I agree with the pundits that you can charge more rent at a better location and potentially have more return. Perhaps your vacancies will turn faster because you have a better location. [...]

UPDATED: 01-JUN-2006

Tom and Irma spent a lifetime buying real estate. By the time they were in their sixties they owned 4 houses, a 30 unit apartment building, three commercial buildings, and had additionally invested with a couple of friends in some real estate partnerships. [...]

UPDATED: 01-MAY-2006

Increased interest rates have created an interesting dilemma for the potential real estate investor — especially in the area of apartment investments. Is now the time to buy, or not? [...]

UPDATED: 01-MAR-2006

What is it that you might not know about American demographics that would affect your decision about when and where to invest in real estate? [...]

UPDATED: 01-DEC-2005

Every day investors ask me to look at potential real estate investments to help them evaluate the quality of the investment decision. [...]

UPDATED: 01-AUG-2005

Often real estate brokers are faced with deals that do not come together. Owners of real estate properties are not too happy when that happens. With this article I thought I would discuss some of the reasons commercial lease transactions might not close, and suggest possible strategies to help increase the closing percentage. [...]

UPDATED: 01-JUL-2005

Welcome to Central Oregon — Lake County to be exact. I am gazing out the window of my cabin overlooking Summer Lake, one of the most beautiful places in Oregon. This is a county of deserts, forests, rangeland, lakes and cowboys. [...]

UPDATED: 01-JUN-2005

I just returned from a meeting in the wonderful town of Coeur D’Alene, Idaho.

Twice a year I have an opportunity to meet with other well-established real estate brokers and property managers to discuss the future of real estate investments. This time we discussed Capitalization Rates (CAP). [...]

UPDATED: 01-APR-2005

You may think that investing in real estate is simple, but you first must decide what your investment objectives are. This is equally important for sole owners of real estate, those investing in Tenant in Common investments (TICs), or those with limited or general real estate partnerships. [...]

UPDATED: 01-AUG-2009

All renters expect basic levels of livability and habitability in their homes or apartments. It is the challenge and the responsibility of the landlord to address these fundamental needs. [...]

UPDATED: 01-JUL-2009

With over 1,000,000 attorneys and over 150 law schools graduating attorneys each year, the average American is well represented (ABA web site data). According to the “Power of Attorneys” website, a survey conducted by the American Bar Association in the 1970s revealed that 70% of Americans not only did not have an attorney, but they also did not know how to find one. That is not the case today. [...]

UPDATED: 01-JUN-2009

Real estate partnerships have been around since the cave man’s days. This is because people have learned to pool their resources in order to reduce their risk and increase their leverage. Pooling resources enables them to have a larger down payment, stronger financial statements, or greater experience. [...]

UPDATED: 01-MAY-2009

Rudolf Holtzman had just purchased an office building as an investment. He was very proud. It was beautiful: 20,000 square feet with six tenants. Regrettably, the day after he closed, one of the tenants experienced an electrical computer malfunction and as a result, his 2000 square foot suite suffered extensive fire damage. Fortunately, the building was just three blocks from the closest fire station, and the fire department was able to limit the loss to only this suite. Portions of the building sustained water damage from the fire hoses as well as smoke damage from the fire. In all, half of the building was unusable. [...]

UPDATED: 01-APR-2009

The purchasing craze of the baby boomers is on. They are buying every stick of real estate in sight. As corporate pensions vanish, social security evaporates/extends to age 70, and the stock market delivers inconsistent returns, baby boomers have increasingly turned to real estate as their retirement vehicle. Real estate investment brokers cannot currently get their hands on sufficient inventory to satisfy them, and competition has reduced returns for investors. [...]

UPDATED: 01-FEB-2004

On September 23, 2001 President Bush implemented Executive Order 13224 which gave the government, specific authorization to impede terrorist funding by disrupting and blocking the assets of foreign nationals and entities that “commit or pose a significant risk of committing acts of terrorism.” [...]

UPDATED: 01-MAR-2000

Gene owns the Yamhill Village Apartments, a quiet 50-unit apartment property location with a park across the street. He does not use a property management company. He lives out of town and has to depend on his on-site managers to keep him informed with a monthly report.[...]

UPDATED: 01-NOV-2003

Last night I was reviewing income and expense analysis reports for three different properties, and once again I realized how hard it is for the average investor to make heads or tails of the information. [...]

UPDATED: 01-SEP-2003

Real estate has always been one of the opportunities where investors have placed their money for the last thousand years. There have always been investment opportunities for money-lenders (a.k.a. banks) of all kinds, but real estate has been one of those investments which includes your home, and this is where the story starts. [...]

UPDATED: 01-MAR-2003

It was just this fall when the rain storms hit that I was again reminded how important it is to keep your roofing maintained. As a matter of course we inspect all roofs at least twice a year, but recently we ran into a major leaking problem with a new commercial tenant. [...]

UPDATED: 01-OCT-2002

Morris was 55 years old and had carefully invested for his retirement. He kept record of all of his investments. After 20 years he decided to review his progress. He had invested in the stock market, but always envied those that had real estate investments and kept thinking, “does it make sense for me to be investing in real estate?”[...]

UPDATED: 01-AUG-2002

Just yesterday I was meeting with a client, trying to help her make the right decision about the timing of the sale of her real estate investment. Her 20-unit apartment property is located close to a major shopping center and freeway arterials.[...]

UPDATED: 01-JULY-2002

King Markus was brooding in his castle. He was broke once again. He turned to his wife, Queen Aminah.

“I was thinking about adding a couple of rooms to our castle, but once again our treasury lies bare. I hate borrowing from the moneylenders, and the citizens are already too taxed. One more tax will result in a revolt. That’s what happened to King Phillip in the neighboring kingdom.”[...]

UPDATED: 01-SEP-2001

If you believe what it says, late night TV is full of great ways to invest in real estate. Most investors are looking at the big payback with no money down. That is like going to the store to buy a watermelon and offering to pay for it with a paperclip (a highly unlikely feat which my daughter successfully managed to do this summer at camp). [...]

UPDATED: 01-FEB-2002

According to recent statistics published by the U.S. Census Bureau, 75% of multifamily investors are over the age of 45 ¹. Over half of these (51.6%) own less than five units, and they earned approximately 31% of their income from ownership of rental properties. [...]