It’s been awhile since my last post. Lots happening these past few months. Usually a good sign when I don’t have time to write. Also working toward a more “modern” way of interacting on the world wide web. Dominion Fine Homes will soon have it’s own Facebook page if you can believe it? Hoping to work the blog into that medium going forward.
So business keeps churning. I currently have a property up on Spur Cross in Cave Creek listed for rent for one of my clients. We had been trying to sell it since last summer. No takers, so we are back to leasing. Should go soon, have had a lot of interest already in the first few days.
Funny thing about this property. My client “Tim,” who is also a good friend, came to me about 8 years ago while we were still in the come-back stage of the great recession and said, “Hey, I’m being transferred back to Southern California. If I sell now, I’m going to loose quite a bit of money on the house. Everyone is telling me to just dump it. What do you think?”
Being more optimistic than smart I said, “Don’t dump it! Rent it out and I’ll help you self manage.” Could tell I had his ear so I continued. “Everyone keeps dumping their property, when does it end? Let’s be a part of the solution!”
He went for it. And then after some eight years of hosting renters, the market looked pretty good, so we put it up for sale. We felt pretty good about ourselves; here we were all these years later and we are a part of the solution! We celebrated. Then celebrated some more. Then realized after 6 or so months no sale was happening. Reality is, the property is unique and most of the value is in the 2.5 acres of land and not the house. Unfortunately, people are not valuing the land, for now.
Celebration ended. We are back to renting the property out. But here’s the silver lining. All this time my client was diligently paying the property off. So when we were having trouble selling, he just says one day, “Hey this is an asset and I can still earn a good dividend on the rent each month. Why not keep it as a rental?”
Roger that. We are still a part of the solution! Real Estate investment, even at the height of the mad-dash housing market of 04 – 07 is still turning out to be a solid decision.