Recent Trends and Cycles in YOUR Market

[Stetson Miller]

I just finished listening to episode 52 of the BP podcast with Ken McElroy, and towards the end of the show, he discusses how his investment company was focusing mainly on expansion of their large multi-family/apartment portfolio. To give some context, if you haven't listened to it, the episode was published in January of 2014. Ken predicted that the apartment investment market was going to peak in 2-3 years, or roughly early 2016 to early 2017. He then goes on to mention that the next cyclical investment for his company will be either mobile home parks or self storage. My questions to you are:

1. Would you agree that the peak for apartment style and large multi-family investments has already been reached in your current market?

2. What cycles or recent trends in real estate are you seeing in your markets that are coming off of a peak or will see a peak in the coming years?

To answer my own questions, I don't feel that I've been following the market long enough to be able to notice a peak in apartment investments in the Fort Myers, FL market, but it certainly appears that the self storage market is now over-saturated. @Brandon Turner has shared a lot about his recent mobile home park investments, and this seems to be a hot market in this area as well.

Thoughts?

[Michael Lewis Lee]

Hello Stetson!  Every area is different.      Each area should be evuated to determine its population and employment growth, future business plans, and the overall demand that fits your plan/goals,  it’s proximity to major employers, it’s school district reputation, and any public transportation that has a nearby stop.  What it’s past look like and if you think the future will continue to do that, it’s exterior looks, and it’s parking.  That is not a complete list of what to look at but feel free to ask other questions on this site and you probably will get several answers from those who have traveled down this road and give you great advice.

Good luck to you!