Anchorage Alaska RE Economy

[James Cash]

I just wanted to open up this discussion and see how everyone feels in the Anchorage, AK community of Real Estate here on BP.

It seems to me that a lot of people in the lower 48 feel a shift coming in the RE economy. Prices are reaching an all time high in Anchorage, sort of reminiscent of the '06 era.

I have my own thoughts as to how the economy will be shifting, but what do you guys and gals think?

[Roy Schauer]

Hi James and Vincent!  I'm currently boots on the ground in Wasilla and Palmer area, and after working in Anchorage, definitely seeing more opportunity in the Valley but in the realm that James Cash is mentioning. Currently finishing a fix/flip that was a HUD foreclosure, bought at $210k, tax assessed at $350k.  Also control another property that my crew is using as a staging house, since most of my guys are from Anchorage and helps keep the driving and travel expenses down, that was a pre-foreclosure home. I'm looking at a commercial property that is willing to be owner financed because in its current shape it won't meet traditional financing for normal buyers, I'm closing on a 6-plex in the next week that cash flows crazy but has major septic issues. And has scared off most other people. Making it possible to get a tax assessed $525k property at $320k. Also currently have two other leads, one is pre-foreclosure and the other needs repairs due to not qualifying for traditional financing. 

i guess what I'm saying is that there is a lot of potential out there, but you can't use traditional methods to find it or make it yield the type of returns your really looking for.



Originally posted by @James Cash:

@Vincent Calderone Welcome to BP! This is an awesome community for like minded individuals.

I always tell new to investing clients that the right time to buy for you is the right time to buy. No one can time the market...almost no one. Typically, if everything is saying the same thing, the market doesn't tend to shift that way.

That said, I might not go new construction in the valley right now, but might go on the fixer upper side of things. This leaves some value-add investing for you, and wiggle room on rents and equity so you're not strapped if the economy does take a turn. The best thing you can do is prepare yourself for the worst case scenario.