TOM CRONE'S Quick Information on Investment / Income Property Action February, 2006

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NOW IS THE MOMENT

Do I have a deal for you!!!! (More on that later.)

Let's get to it. I can show you all sorts of investment statistics that would make real estate investing seem like the thing to do.

WHY IS IT that some people make money in the marketplace regardless of the state of the market? They do it with almost any investment – stocks, bonds, precious metals and gems, antiques, and real estate.

WHY IS IT that others do not make a nickel even in the best of times?

It's all about having knowledge. It's all about using knowledge. I have a good friend whose business is oriental antiques. Some of you know him, although I will allow him to remain modestly anonymous for the moment. He does very, very well in that business. He's a shrewd dealer and knows how to negotiate. Beyond that, he has knowledge. Sure, he makes the occasional bad investment, and every time he does, he learns something new from it. He hedges all his bets with safe investments. What makes them safe? Knowledge. He does better than most do in his business because he has more knowledge than most of the people with whom he deals.

We don't need to talk about whether it's a "good" real estate market or a "bad" one. We need only consider how to profit from what the marketplace offers us.

SO HERE'S THE DEAL. There is power in knowledge and there is power in numbers. I'd like to get a group of prospective investors together for a couple of informal meetings. (No suits, no ties.) Included would be experts on mortgage banking, possibly an attorney who knows how to form various Limited Liability groups.

I could bring in a variety of examples of income properties, ranging from duplexes and quads to small apartment buildings, and we can look at their investment viability, crunch the numbers using real estate investment tools.

I'd also like to expose the group to the "flip" property, the buy and rehab and sell. Done right, these can make significant profits in a reasonably short time.

There is vitality in group activity, and often synergism. You would meet with others with similar investment interests who want to "just take a look" at what's going on, what the potentials are, and perhaps find others who want to share the investment. We could create our own version of what Think and Grow Rich author Napoleon Hill called a "Master Mind" group.

As My Father Used to Say… "Footprints on the sands of time are not made while sitting down."

So, to get started, an indication of some interest is all we need. If you are thinking, "Hmm. Maybe… That might be worth a little time and be interesting," then just reply to the e-mail and say "Count me in" in the subject line. If you want to add more in the message area, perhaps about areas of special interest, feel free.

I'll begin to put it together, assemble the people, find the place, get the right experts and coordinate some times. By the time the leaves are on the trees, we could have a very viable investment group in place.

Weekly Market Activity Report - Minneapolis Area Association of Realtors

Seller activity in the Twin Cities residential real estate market continues to be very robust. Total property inventory has risen to near 28,000 in the 13-county metropolitan area, and should continue to grow as we near the busy spring and summer months. Buyer activity remains strong as well, with weekly Pending Sales in the region almost matching last year's record activity at this time. This week's edition of the MAAR Weekly Market Activity Report features an updated Supply-Demand Ratio (SDR) for February 2005 of 5.98. This indicates that there are roughly 5.98 homes available on the market for every purchase agreement expected for the month of February.

NOW IS THE MOMENT (Did I say that before? Here’s why.)

In general, we have a healthy real estate market in the metro. I believe it bodes well for the real estate investment market; however, NOW IS THE MOMENT. Interest rates are sneaking upward (not killer upward, but in the investment game every sliver of percentage matters), and in three months the buds will be on the trees and the sellers will think they ought to put hither prices on the spring homes.

Tom Crone
The opinions expressed in this newsletter are solely those of Tom Crone and others being quoted and do not necessarily reflect the opinions of Coldwell Banker Burnet or its affiliates.