Today we’re going to discuss understanding your potential real estate investment.
Bob Nelson, Eugene real estate investment broker
Bob Nelson: Today, I’d like to touch on again, a topic I covered yesterday. Now I can’t assume that you were here yesterday, listening on. But let me state again, that as you invest in real estate, it’s particularly important that you understand the nature of the asset that you’re invested in.
What issues could cause it to become more attractive? Restated, go up in value. Or what could make it less attractive, which would potentially mean a reduction in appeal, which would be a reduction potentially in the value of that asset in the future? Example being, apartments or certain offices. Office again, people are figuring out how to work at home, companies are then stating, “We can do this stuff from home, we don’t necessarily need to occupy an office.”
Bob Nelson: At which point ouch, if you’re the owner of an office and the tenant decides they really don’t need you, the only way you’re going to keep going is to drop the rent sufficiently for someone to say, “Gosh, I would take this issue on and I will take the congregate position. And even the throws of the chain of virus, where people are supposed to be keeping a social distance, I would take that chance.”
But do understand, you need to know what factors influence both positively and negatively, the asset that you own. And if you find that those asset types are so negative, in your opinion, that you don’t want to continue to stay the course, sell it, do a tax deferred exchange into a replacement property, a different asset group potentially, that would not be exposed to the same level of risk.
Bob Nelson: You owe it to yourself to survive. The number one rule of any living entity, survive. And to a great degree, it depends on a logical strategy. And again, strategy is so important at this particular point. I’m deemed as a real estate investment strategist, what should I be doing? How would I make things better? How would I get out of the way of the train that’s coming down the track? Give me a call, let me see if I could help.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.