Our top 5 reasons we believe investing in real estate is one of the safest growth strategies are:

1.  Value - real estate is on sale, deep discounts are being offered, there may have never been a time as good as this to buy real estate to develop wealth.
    
2. Inflation hedge - because real estate is a tangible hard asset.  Property values should rise with inflation as the cost of building materials increase.
    
3. Investment protection - the way we invest in real estate the investment offers several investment protections including, equity in the property, property insurance, and cash flow.
    
4. Predictable results - using time proven techniques real estate investing is very predictable.  We have spent more than $100,000 in real estate investing education and training over the last 3 years and we will continue to "sharpen our skills" by continual education.  It is generally the uneducated with little experience or greedy that get burned when markets turn.
    
5. A necessary product -  Everyone needs a place to live. 
    

In future issues we will provide short overviews of the different types of real estate investing and how you can partner with us to earn returns on your investment that are better than you can earn with most other investments.

Mary Jane suggested that since we have such a diverse mailing list that I should provide a short summary of the report without the industry jargon.  The paragraphs directly below in italics contain my understanding of the report. 

Although consumer spending is down, core consumer spending (this doesn't include cars and autos) is in fact, exceeding pre-recession highs.  With fuel prices failing consumer spending should continue to increase.  Since consumer spending accounts for 70% of the economy, demand for supply-chain oriented industrial properties including warehouse and distribution facilities is expected to increase. 

We also believe that as the economy continues to improve there will be a greater demand for multi-family properties and since the fewer of these properties have been built over the last 4-5 years, rents can be increased and property valuations can be driven higher. 

Excerpts from the actual report:

The U.S. economic downshift into a more moderate rate of expansion has marginally impacted consumer spending. Weakness in the national recovery was evident in top-line May retail sales, as total receipts slipped for the first time in 11 months. The drop in May sales, however, was beset by rising energy prices and supply-chain disruptions that weighed down auto sales, factors that will prove temporary. In May, consumers demonstrated their ability to overcome rising gas receipts, as core retail sales excluding auto and gas, continued to rise. More importantly, core retail sales long-ago exceeded pre-recession highs. With fuel prices ebbing and providing Americans some expense relief, household purchases, which account for 70 percent of the economy, should improve and sustain economic expansion in the coming months.

Core retail sales rose 0.3 percent in May, up 4.4 percent above the previous peak in July 2008, but consumers remained hesitant to purchase big-ticket items.

The Conference Board index of leading indicators, which predicts economic activity, rose 0.8 percent in May, providing another reinforcing sign that the U.S. economy remains poised for continued, albeit slow, growth.

Impact on Commercial Real Estate

Minimal supply growth, coupled with strengthening economic conditions and rising retail sales will facilitate a downward drift in national retail vacancy through 2011.

Increases in core U.S. retail sales and an overall rise in global consumption will fuel tenant demand for supply-chain oriented industrial properties including warehouse and distribution facilities. As global trade continues to make headway, aided by the weak dollar, warehouse/distribution facilities in port-centric major markets such as Los Angeles and Houston, will steadily lease up through the remainder of the year. A rise in space requirements, coupled with near-record low supply growth will support a 50 basis point reduction in the national industrial vacancy in 2011 to 12.1 percent.

 For the complete Research Brief, click here.

Source: Marcus and Millichap produces The Research Brief Blog that is compiled by top industry professionals, showcasing time-sensitive information and valuable analysis.

• 2 - rental houses
   
• 1 - 12 unit manufactured housing community -we are putting the finishing touches on one of the homes which will sell and the park will be 100% occupied.
   
• 1 - 138 unit manufactured housing community - our team closed on the 138 unit community in July of last year and progress is pretty much in line with our planned performance objectives.

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Did you know that you can invest in real estate from your IRA or other retirement account?  This investment secret isn't well known but it is perfectly legal. Contact us and/or click on this Investment Secret link learn more.