Most of us will become real estate investors at some point in our lives. We may not own apartments, a retail center or even a commercial building but the largest investment we will ever own will be a home. In that definition most of us will invest in real estate. We will love our investment for a while but in time we will probably decide to sell. At that point you will discover that real estate is not a ‘liquid investment’. A term used to define an investment that you cannot immediately sell.
Unlike stocks, mutual funds or many other investments real estate is not a ‘liquid asset’. I, like you, have heard the stories of a home that sells in 24 hours, but that is a rare exception. As a general rule a real estate investment will take 3 months to 2 years to find a buyer at an acceptable price. I have seen too many sellers reject an early offer thinking a better offer is around the corner only to wait many, many months for another offer that may be lower than the original offer. I advise sellers that neither they nor I will set the final price but the market will tell us what it is willing to pay and that applies to homes as well as commercial and investment property.
Stock brokers and financial advisors will often refer to real estate as an ‘alternative asset’. That means that it is an investment they do not sell. However many will admit that it needs to be a part of any prudent investors portfolio. Real estate is a long term investment that has a proven track record of growing in value over time. I have seen it all but the worst cases I have witnessed are real estate investors who want a quick sale after purchase with little or no improvements.
ON THE LOCAL SCENE
The PHYSICAL THERAPY CLINIC at 2601 Ferrand Street, Monroe has been sold. The 7,800 sf building plus 36 Mini Storage Units sold for $630,000
The CREEKS APARTMENT COMPLEX 1220 E. Kentucky Ave., Ruston has sold for $3,850,000. The 24 units sold for $160,416 per unit.
***PUBLISHED in the Ouachita Citizen on November 15, 2018***