tag:blogger.com,1999:blog-84424230107176717152024-03-08T12:24:44.801-08:00Cal State Companies Real Estate Investment GuideListen to our free webinar "3 MOVES TO A MILLION" now to learn how $6,000 was turned into $1,000,000 in only 3 moves. Excellent real estate investing and research guide.Unknownnoreply@blogger.comBlogger78125tag:blogger.com,1999:blog-8442423010717671715.post-51988070090040876972020-10-08T11:27:00.001-07:002020-10-08T11:27:25.170-07:00<p> </p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f">
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<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-hyphenate: none; mso-outline-level: 1; tab-stops: -.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";">The Cal State Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
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</w:wrap></v:rect><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">E-Mail </span><a href="mailto:CalStatecompanie@aol.com"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">CalStatecompanie@aol.com</span></a><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> Webpa<span style="color: black;">ge</span><span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-outline-level: 1; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 26.0pt; mso-fareast-font-family: "Times New Roman";">Leading Residential Income Markets<o:p></o:p></span></b></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-hyphenate: none; text-align: center;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 26.0pt; mso-fareast-font-family: "Times New Roman";">3rd Quarter 2020<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>LOS <st1:place w:st="on"><st1:city w:st="on">ANGELES</st1:city>,
<st1:state w:st="on">CA</st1:state></st1:place>. The calstatecompanies Center
for Real Estate Studies (CRES) research report has just released their third
quarter 2020 issue of “<i>Market Cycles</i>".<span style="mso-spacerun: yes;"> </span>It gives a forward look at more than 175
income rental markets with “buy, sell or hold” recommendations. This
publication gives the real estate investor a two-year head start on where and
when to invest in rental income properties.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>The current number of markets in the “Sell Phase” is
thirty-one, according to Eugene E. Vollucci, President of
calstatecompanies.<span style="mso-spacerun: yes;"> </span>The number of markets
in the “Buy Phase” is eleven. Mr. Vollucci states, “This quarter the three top
buy recommendations are Chattanooga, TN, Detroit, MI and Worchester, MA. The
three top sell recommendations are Modesto, CA, San Antonio, TX and New Haven, CT.
The other markets are currently in a hold phase.” <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>In this edition of our <i style="mso-bidi-font-style: normal;">Market Cycles,</i> we find the </span><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-color-alt: windowtext;">National
vacancy rates in the second quarter 2020 were 5.7 percent for rental housing
and 0.9 percent for homeowner housing. The rental vacancy rate of 5.7 percent
was 1.1 percentage points lower than the rate in the second quarter 2019 (6.8
percent) and 0.9 percentage point lower than the rate in the first quarter 2020
(6.6 percent). The homeowner vacancy rate of 0.9 percent was 0.4 percentage
points lower than the rate in the second quarter 2019 (1.3 percent) and 0.2
percentage points lower than the rate in the first quarter 2020 (1.1 percent).</span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-color-alt: windowtext;"><span style="mso-tab-count: 1;"> </span>Unemployment
rates were higher in August than a year earlier in 387 of the 389 metropolitan
areas and lower in 2 areas, the U.S. Bureau of Labor Statistics reported today.
A total of 37 areas had jobless rates of less than 5.0 percent and 6 areas had
rates of at least 15.0 percent. Nonfarm payroll employment decreased over the
year in 254 metropolitan areas and was essentially unchanged in 135 areas. The
national unemployment rate in August was 8.5 percent, not seasonally adjusted,
up from 3.8 percent a year earlier.</span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-color-alt: windowtext;"><span style="mso-tab-count: 1;"> </span>The
second quarter 2020 rental vacancy rate was higher outside Metropolitan
Statistical Areas (8.2 percent) than the rate in the suburbs (5.3 percent) and
the rate in principal cities (5.6 percent). The rental vacancy rate in
principal cities was not statistically different from the rate in the suburbs.
The rental vacancy rates inside principal cities and in the suburbs were lower
than second quarter 2019, while the rate outside MSAs was not statistically
different from the second quarter 2019 rates.</span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in; text-indent: 36.15pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-fareast-font-family: "Times New Roman";">With the uncertainty of the upcoming election we
have put many of our buy/sell recommendations in<i> Market Cycles </i>on hold. </span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">Calstatecompanies
publication <i>Market Cycles</i> will keep you informed as the real estate
investment market changes.</span><span style="background: white; color: black; font-family: "Arial",sans-serif; font-size: 13.5pt; line-height: 107%;"> Our
quarterly newsletter gives a clear, concise analysis of over 175 different
markets across the country, and makes timely recommendations on WHERE and WHEN
to buy or sell in <em><b><span style="font-family: "Arial",sans-serif;">Pockets
of Opportunity</span></b></em>. To purchase <i>Market Cycles</i> go to </span><a href="http://www.calstatecompanies.com/"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-family: "Courier New"; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"> <b style="mso-bidi-font-weight: normal;">is
considered to be one of the foremost authorities on real estate taxation and
investing and has authored books in these fields published by John Wiley &
Sons of New York. He is the Director of the Center for RE Studies, a real
estate research organization. To learn more about the Center, please visit our
web site at </b></span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-46524111726536820432020-09-16T11:24:00.001-07:002020-09-16T11:24:11.567-07:00<p> </p><p align="center" class="MsoNormal" style="line-height: 103%; margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in; text-align: center; text-indent: -.5pt;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f">
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<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-hyphenate: none; mso-outline-level: 1; tab-stops: -.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";">The Cal State Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
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<p class="MsoNormal"><b><span style="font-family: "Times New Roman",serif; font-size: 16.0pt; line-height: 107%;">REAL ESTATE INVESTMENT OUTLOOK SEPTEMBER
2020<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">The unanswered question now is: Where do we go from
here? The answer is hinged on three issues at least: (1) Can a second wave of
accelerating infections after the travelling and summer holiday season be
avoided? And if not, will regional and partial lockdowns be sufficient to
contain the virus? (2) Related to this, is the question as to whether a medical
treatment and vaccine will be available. (3) If<span style="mso-spacerun: yes;">
</span>our economy is revitalized, will the strength of the economic recovery
be sufficient to restore the real estate investment markets? <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 106%; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 106%; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%;">The
combination of a fear of infection, public guidelines, mandatory lockdowns and
great uncertainty produced a sharp deterioration in economic activity with a
deep and widespread shock to our labor market. An unprecedented number of
workers (39% on average reported by the Organization of Economic Cooperation
and Development (OECD)) shifted to telework, pushing the boundaries of the
potential for this alternative way of organizing work. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">Our jobless claims surged to around 6.9 million at the
end of March. The weekly average of initial jobless claims now stands at approximately
3 million, as indicated by the US Bureau of Labor Statistics. This labor market
trend is reflected in an US unemployment rate of 14.7% for April. In July, as
some lockdowns were relaxed and people returned to their jobs, the unemployment
rate dropped to 10.2%. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"> </span></span><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-fareast-font-family: Calibri;">But the gap between the pre-crisis
level and the current level of real estate activity is still very wide. With
the resurgence of new infections, consumers have become more cautious and are
avoiding restaurants, shopping areas and entertainment events. In addition, the
vast majority of plans by states to relax the containment measures have been
suspended or new restrictions are even being imposed. This also reflected in
the industrial production number for July, which declined from approximately
5.5% in June to around 3.2% in July, indicating that economic activity appears
to be plateauing.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 106%; margin-bottom: 0in;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%; mso-fareast-font-family: Calibri;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">Given the heightened uncertainty about the longer-term
impact of the disease on the real estate markets, we still, however, prefer
lesser cyclical real estate markets, such as residential income, but are
keeping a hold designation<span style="mso-spacerun: yes;"> </span>on most
multifamily markets . This integrates a sharp earnings contraction for the
second quarter 2021 based on calstatecompanies Market Cycles research, with a lukewarm
recovery during the third and a likely acceleration into the fourth quarter.
And it compares with 2008/2009 during the Great Recession where earnings
retreated on a similar scale. It is therefore fair to assume that we will have
strong earnings momentum building up going into 2021, as seen in the aftermath
of the financial crisis<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">Calstatecompanies publication Market Cycles will keep
you informed as the real estate investment market changes. It will give you a
two-year head start on when and where you should be investing.</span><span style="background: white; color: black; font-family: "Arial",sans-serif; font-size: 13.5pt; line-height: 107%;"> Our quarterly newsletter gives a clear, concise
analysis of over 175 different markets across the country, and makes timely
recommendations on WHERE and WHEN to buy or sell in <em><b><span style="font-family: "Arial",sans-serif;">Pockets of Opportunity</span></b></em>. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 8.0pt; margin-left: -.15pt; margin-right: 2.0pt; margin-top: 0in;"><span style="background: white; color: black; font-family: "Arial",sans-serif; font-size: 13.5pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"> <b style="mso-bidi-font-weight: normal;">is
considered to be one of the foremost authorities on real estate taxation and
investing and has authored books in these fields published by John Wiley &
Sons of New York. He is the Director of the Center for RE Studies, a real
estate research organization. To learn more about the Center, please visit our
web site at </b></span><span style="color: black; font-size: 9.5pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a></span><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">UTUBE: </span><span style="color: black; font-size: 9.5pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;"><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a></span><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: Calibri;"> <b style="mso-bidi-font-weight: normal;"><span style="mso-spacerun: yes;"> </span></b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 106%; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%; mso-fareast-font-family: Calibri;"><span style="mso-spacerun: yes;"> </span></span></b><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%; mso-fareast-font-family: Calibri;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 106%; margin-bottom: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%; mso-fareast-font-family: Calibri;"><span style="mso-spacerun: yes;"> </span></span></b><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 106%;"><o:p></o:p></span></p>EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-36599890969348082002020-08-17T10:33:00.001-07:002020-08-17T10:33:29.190-07:00<p> </p><p align="center" class="MsoNormal" style="line-height: 103%; margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in; text-align: center;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f">
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<p class="MsoNormal" style="line-height: normal; margin: 0in; mso-hyphenate: none; mso-outline-level: 1; tab-stops: -.5in; text-align: justify; text-indent: 0in;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";">The Cal State
Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate
Studies </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";">
</span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";">Cal
State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment
LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
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</w:wrap></v:rect><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">E-Mail
</span><a href="mailto:CalStatecompanie@aol.com"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">CalStatecompanie@aol.com</span></a><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">
Webpa</span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">ge</span><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> <u>http://www.calstatecompanies.com</u></span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin: 0in; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><o:p> </o:p></b></p>
<p class="MsoNormal" style="margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><o:p> </o:p></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 22.0pt; line-height: 150%;">WHEN
WE COME BACK….<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><o:p> </o:p></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><o:p> </o:p></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;">WHEN
WE COME BACK….after this coronavirus commercial<span style="mso-spacerun: yes;">
</span>break </span></b><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;">whoever is our new leader will have to
manage the economy as it restarts in earnest in 2021.<span style="mso-spacerun: yes;"> </span>Finances have been overextended by the massive
fiscal packages approved so far, and hard choices will need to be made about
whether to push ahead with further stimulus, or to try to constrict spending as
the recovery gets underway. Therefore, we do not believe that tax policy will
be at the top of the policy agenda for either of the presidential candidates
after inauguration. We can imagine that taxes might be gradually used over time
to strengthen fiscal ratios , where the Congressional Budget Office estimates
that the debt-to-GDP ratio may reach 120% over the coming years. In addition,
it is possible that tax incentives will be created to promote a more
sustainable<span style="mso-spacerun: yes;"> </span>consumer attitude toward
scarce resources. Whether this may hurt earnings or would even support earnings
will depend on the availability of technology to support the ability of
consumers to adopt more sustainable behavior. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;">Calstatecompanies<span style="mso-spacerun: yes;"> </span>recommends a long-term investment approach,
the temptation admittedly exists to position real estate investments to take
advantage of, or hedge against, potential election outcomes. We caution
investors against doing so at this time, but instead advise them to be ready to
alter their investments as new information arises. One reason for this is that
the election outcome is highly uncertain, and positioning<span style="mso-spacerun: yes;"> </span>right now for a specific outcome leaves it
vulnerable to the risk of a different outcome, with different real estate market
consequences. Instead, we recommend tactically adjusting real estate
investments to reflect the evolving outcome probabilities and the policies
likely to be adopted in each case. The implied rationale for this approach is
to maintain diversification so that a single outcome does not cause significant
financial agony. In other words, we believe that the elections will have a more
short-term impact on the real estate markets. Consumers adapt to changed
policies over time and enhance their return continuously. Therefore, a diversifying
your real estate investments based on the research reports issued by the
calstatecompanies <i>Market Cycles</i> will give you the information you need
to make sound investment decisions.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .2pt; margin-left: 26.65pt; margin-right: 2.3pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin: 0in; mso-layout-grid-align: none; text-autospace: none; text-indent: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">ABOUT
THE AUTHOR: Eugene E. Vollucci,</span></b><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"> <b style="mso-bidi-font-weight: normal;">is considered to be one
of the foremost authorities on real estate taxation and investing and has
authored books in these fields published by John Wiley & Sons of New York.
He is the Director of the Center for RE Studies, a real estate research organization.
To learn more about the Center, please visit our web site at </b></span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin: 0in; mso-layout-grid-align: none; text-autospace: none; text-indent: 0in;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin: 0in; text-indent: 0in;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
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<p class="MsoNormal" style="line-height: 150%;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 150%;"><o:p> </o:p></span></p>EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-16492209124318209552020-08-05T10:53:00.002-07:002020-08-05T10:53:22.974-07:00<p align="center" class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in; text-align: center;"><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f">
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</w:wrap></v:imagedata></v:shape><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 100.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman";">News</span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></p>
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Cal State Companies:<span style="mso-spacerun: yes;"> </span>Center for Real
Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment
LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
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Webpa</span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">ge</span><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> <u>http://www.calstatecompanies.com</u></span><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></i></b></p>
<p align="center" class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif; font-size: 22.0pt; line-height: 103%;">Real
Estate Investment Outlook August 2020<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;">It looks like the corona virus has spiked.
When we will see a decline again depends on various factors: 1) the
effectiveness of the fiscal support measures<span style="mso-spacerun: yes;">
</span>2) how fast jobs will return and short-working schemes<span style="mso-spacerun: yes;"> </span>can be reverted to normal working time
employment, 3) how fast supply chains can be fully repaired, 4) how resilient
private consumption will be in the light of elevated unemployment and rising
debt burdens, and 5) the impact of possible second waves. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 107%; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 107%; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;">According to its World Economic Outlook, the world
economy, especially the advanced countries, is expected to contract in a
coordinated fashion. <span style="mso-spacerun: yes;"> </span>Most countries have
embraced various support measures such as tax deferrals, loans, equity
injections, and guarantees. These policies will only have an indirect impact on
growth this year because they provide financing rather than directly increasing
spending. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;">The Fed has already stretched its balance
sheet at a frantic pace. Its total assets have grown from 4.2 trillion USD in
December 2019 (representing about 19.2% of GDP) to 7.2 trillion USD by early
June 2020 (±31.5% of GDP). Most of the expansion thus far can be explained by
its “traditional” asset purchase program targeting Treasury and government
sponsored enterprise (GSE) securities. The holdings of those increased from 3.7
trillion USD in December 2019 (17.2% of GDP) to 5.6 trillion USD by the end of
May 2020 (25.8% of GDP), surpassing their previous record in both nominal terms
and relative to GDP (over 24% of GDP in 2014). In addition to these programs,
which are already reflected in the bank’s balance sheet and which as yet do not
have an official upper limit, the Fed has pioneered new measures to provide up
to 2.3 trillion USD in loans to support the economy, only a portion of which is
currently disbursed. This latter figure includes up to 750 billion USD
allocated to purchase corporate bonds from issuers which are either investment
or noninvestment grade. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;">One argument in favor of a potential boost
to inflation is the massive fiscal spending that is being used to fight the
worst consequences of the current slump in economic activity. But arguing that
fiscal stimulus is a game-changer is putting the cart before the horse. It is
not the current stimulus that matters but whether huge deficits will continue
long into the future. It must be noted first of all that a big amount of the
fiscal measures announced are loan guarantees rather than fresh new money.
There is nothing simulating about adding more debt to balance sheets. Even a
direct form of stimulus is designed to be temporary and self-calibrating. The
bulk of the fiscal stimulus is also temporary – households have received a
one-off paycheck, more likely to be saved rather than spent, as happened in
2008. As things stand, the fiscal stance is set to be massively contractionary
next year, not expansionary. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom: .15pt; margin-left: -.25pt; margin-right: 2.35pt; margin-top: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 103%;">These policies will have a devastating
effect on real estate values in the coming years. To keep on top of the real
estate markets and avoid the rocky road ahead, we recommend using
calstatecompanies “Market Cycle” which gives you a two-year head start on when
to buy, sell or hold.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 107%; margin-bottom: 8.6pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 14.65pt; margin-bottom: .0001pt; margin: 0in; tab-stops: 45.8pt 91.6pt 137.4pt 183.2pt 229.0pt 274.8pt 320.6pt 366.4pt 412.2pt 458.0pt 503.8pt 549.6pt 595.4pt 641.2pt 687.0pt 732.8pt; text-indent: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; mso-layout-grid-align: none; text-autospace: none; text-indent: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">ABOUT
THE AUTHOR: Eugene E. Vollucci,</span></b><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"> <b style="mso-bidi-font-weight: normal;">is considered to be one
of the foremost authorities on real estate taxation and investing and has
authored books in these fields published by John Wiley & Sons of New York.
He is the Director of the Center for RE Studies, a real estate research
organization. To learn more about the Center, please visit our web site at </b></span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; mso-layout-grid-align: none; text-autospace: none; text-indent: 0in;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; mso-layout-grid-align: none; text-autospace: none; text-indent: 0in;"><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin: 0in; text-indent: 0in;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">To unsubscribe
click below: <br />
</span><a href="https://docs.google.com/spreadsheet/viewform?formkey=dHpxXzVENEhidFVBWHFnQzlPbkYweVE6MQ#gid=0" title="https://docs.google.com/spreadsheet/viewform?formkey=dHpxXzVENEhidFVBWHFnQzlPbkYweVE6MQ#gid=0"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-fareast-font-family: "Times New Roman";">https://docs.google.com/spreadsheet/viewform?formkey=dHpxXzVENEhidFVBWHFnQzlPbkYweVE6MQ#gid=0</span></a><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p></o:p></span></p><br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-726017063311704832020-07-09T12:14:00.001-07:002020-07-09T12:14:49.966-07:00<br />
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<span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt;">The Cal State Companies:<span style="mso-spacerun: yes;">
</span>Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt;">
</span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt;">
Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</w:wrap></v:rect><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail </span><a href="mailto:CalStatecompanie@aol.com"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt;">CalStatecompanie@aol.com</span></a><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt;">
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Webpa<span style="color: black;">ge</span><span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 26.0pt;">Leading Residential Income Markets<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 26.0pt;">2nd Quarter 2020<o:p></o:p></span></b></div>
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<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;"><span style="mso-tab-count: 1;"> </span>LOS <st1:place w:st="on"><st1:city w:st="on">ANGELES</st1:city>, <st1:state w:st="on">CA</st1:state></st1:place>. The Center for Real Estate Studies (CRES) has just released their second quarter 2020 issue of “Market Cycles".<span style="mso-spacerun: yes;"> </span>It gives a forward look at more than 150 residential income markets with “buy, sell or hold” recommendations. This publication gives the real estate investor a two-year head start on where and when to invest in residential income properties.<o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p> </o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;"><span style="mso-tab-count: 1;"> </span>The current number of markets in the “Sell Phase” is thirty-three, according to Eugene E. Vollucci, President of calstatecompanies.<span style="mso-spacerun: yes;"> </span>The number of markets in the “Buy Phase” is fifteen. Mr. Vollucci states, “This quarter the three top buy recommendations are Atlanta, GA, Greenville, SC and Portland, OR. The three top sell recommendations are Bellingham, WA, Denver, CO and Newark, NJ. The other markets are currently in a hold phase,”<u><o:p></o:p></u></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;">according to Mr. Vollucci. <u><o:p></o:p></u></span></pre>
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<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;"><span style="mso-tab-count: 1;"> </span>In this edition of our <i style="mso-bidi-font-style: normal;">Market Cycles,</i> we find the first quarter 2020 rental vacancy was highest outside Metropolitan Statistical Areas (MSAs), which was higher than the rate in the suburbs, and the rate in principal cities. The rental vacancy rate in principal cities was not statistically different from the rate in the suburbs. The rental vacancy rate inside principal cities was lower than first quarter 2019, while the rates in the suburbs and outside MSAs were not statistically different from the first quarter 2019 rates.<o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p> </o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-color-alt: windowtext;">Unemployment rates were higher in May than a year earlier in all 389 metropolitan areas, the U.S. Bureau of Labor Statistics reported today. A total of 109 areas had jobless rates of less than 10.0 percent and 16 areas had rates of at least 20.0 percent. Nonfarm payroll employment decreased over the year in 357 metropolitan areas and was essentially unchanged in 32 areas. The national unemployment rate in May was 13.0 percent, not seasonally adjusted, up from 3.4 percent a year earlier<span style="mso-tab-count: 1;"> </span><o:p></o:p></span></pre>
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<span style="background: white; color: #212529; font-family: "Times New Roman",serif; font-size: 14.0pt;">The level of uncertainty in our economy is
currently at an all-time high with the path of the recovery difficult to
predict. Our government has taken major steps to try to cushion us and our
economy through these difficult times. </span><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt;">According to Zumper’s
National Rent Report for April, Google search volumes for apartments
for rent were down between 10% and 35% last week in its top cities, while
long-term inventory dropped by about 12% last week.<o:p></o:p></span></div>
<pre style="background: white; line-height: 14.65pt;"><span style="background: white; color: #212529; font-family: "Times New Roman",serif; font-size: 14.0pt;">We are keeping an eye on the real estate investments outlook created by the spike in coronavirus and policy steps that are being taken, but we would advise against putting too much weight on a specific-point forecast until the future pathway becomes clearer.</span><span style="background: white; color: #2c2d2f; font-family: "Times New Roman",serif; font-size: 14.0pt;"><o:p></o:p></span></pre>
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<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-family: "Courier New";"><o:p> </o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="color: black; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-family: Arial; mso-bidi-font-size: 10.0pt;"><o:p> </o:p></span></pre>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b style="mso-bidi-font-weight: normal;">is considered
to be one of the foremost authorities on real estate taxation and investing and
has authored books in these fields published by John Wiley & Sons of New
York. He is the Director of the Center for RE Studies, a real estate research
organization. To learn more about the Center, please visit our web site at </b></span><a href="http://www.calstatecompanies.com/"><span style="font-size: 14.0pt;">http://www.calstatecompanies.com</span></a><span style="font-size: 14.0pt;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-36695489772347546562020-06-25T12:12:00.001-07:002020-06-25T12:12:02.695-07:00<br />
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<span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">Center for Real
Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; letter-spacing: -.1pt;">Media Contact: Center for RE Studies<span style="mso-spacerun: yes;"> </span><span style="mso-tab-count: 4;"> </span>For Immediate Release<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman",serif; font-size: 24.0pt;">Comprehensive
Property Analysis Strategies<o:p></o:p></span></b></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">THE
INTERNAL RATE OF RETURN (IRR) TO AIM FOR<o:p></o:p></span></div>
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The IRR should reflect the degree of risk you’re willing to
take. The riskier an investment, the higher the IRR. If you’re purchasing a
building that has decreased in value only because of temporary market
conditions, your degree of risk might be considered moderate. Conservative
projections are computed using rental growth and vacancy rates, and they
establish the lower limits of the IRR. IRR projections based on replacement
costs determine the higher limits of the IRR. Analyzing both rates of return
allows you to assess the risks versus rewards relationship of each investment.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">REVENUE
ASSUMPTIONS THAT MAKE SENSE<o:p></o:p></span></div>
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Revenue assumptions play an important part of your analysis.
In addition to the information provided by consultants, check with local rental
firms. They are on top of current trends and demand. Lease agreements should be
verified to actual rents for each tenant. Use rental applications to develop
tenant profiles. Obtain a signed estoppel from each tenant attesting to the
rent paid, occupancy dates, and deposits. Rent raises don’t always occur on the
first day of the month or in the first month of the year. A careful review of
rental agreements will assist in making accurate cash flow projections.
Ideally, try to stagger individual rent raises throughout the year. It is less
disturbing to the entire complex.<o:p></o:p></div>
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Vacancies vary in seasonal locations like college towns and
resort areas. Make provisions for these fluctuations in cash flow projections.<span style="mso-spacerun: yes;"> </span>Don’t assume income will be received evenly
month-to-month and year-to-year. Projections based on research will result in a
more accurate IRR.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">ANALYZE
EXPENSES CORRECTLY<o:p></o:p></span></div>
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When analyzing expenses, refer to the real estate investment
inspection report. It should detail, by projected date the costs, repairs and
replacements for each unit and the entire building. Using a comprehensive
computer program will produce accurate operating budgets.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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Mechanical equipment such as water heaters, dishwashers,
garbage disposals, and pool equipment, for example, have estimated life spans.<span style="mso-spacerun: yes;"> </span>Major repairs and replacements on roofs, plumbing,
decking, and cement should be detailed by estimated costs and the dates work is
to be started and completed.<o:p></o:p></div>
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As with income, expenses do not occur evenly throughout the
year.<span style="mso-spacerun: yes;"> </span>For example, in cold climates,
utility bills are higher in the winter than in the summer. With grounds and
pool maintenance, it is just the opposite.<o:p></o:p></div>
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Expense figures should be compared with those published by
the IREM. All sizable discrepancies must be explained.<o:p></o:p></div>
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Do not make flat rate projections. Don’t apply inflation
rates across the board. Projections should be made on an item-by-item basis
using the best information available. For example, if the inflation rate of 5
percent is used in one year, don’t use it again unless it applies. Actuals should
be used whenever possible.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">USE
THE FEEL-AND-TOUCH ANALYSIS<o:p></o:p></span></div>
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As part of the analysis, we at calstatecompanies believe
that absolutely nothing beats the feel-and-touch approach. A physical
inspection of the real estate investment and the neighborhood will confirm your
consultant’s reports. Critical words like good, bad, best, worst, bright, dull,
a lot, and a little are subjective. Make sure everyone’s singing from the same
hymn book when praises to your real estate investment are being sung!<o:p></o:p></div>
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Ask yourself the following questions when evaluating the
area as part of the physical inspection:<o:p></o:p></div>
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<span style="mso-tab-count: 1;"> </span>• Would you
be willing to live or at least collect the rents in <o:p></o:p></div>
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</span>this neighborhood?<o:p></o:p></div>
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• What’s the graffiti index?<o:p></o:p></div>
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• How does the landscaping of the
other properties compare with the one <span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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</span>you’re considering?<o:p></o:p></div>
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• Is there debris in the streets?<o:p></o:p></div>
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• Are there cars on blocks?<o:p></o:p></div>
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• Is it completely off the beaten
path to major shopping and <o:p></o:p></div>
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</span>Work centers?<o:p></o:p></div>
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• Is the community growing
favorably in the direction of your real<o:p></o:p></div>
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<span style="mso-spacerun: yes;">
</span>estate investment?<o:p></o:p></div>
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• Are transportation lines readily
available?<o:p></o:p></div>
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• Are schools and recreational
facilities nearby?<o:p></o:p></div>
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• What is the ratio of renter- to
owner-occupied buildings?<o:p></o:p></div>
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The greater the rental population, the more transient the
area be-comes and the greater possibility of it being left unkempt. The
physical test will give you that personal viewpoint necessary to complete the analysis.<o:p></o:p></div>
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Even in depressed markets you should look for properties in
good locations. A cardinal rule is to buy the worst property in the best location,
not the best property in the worst location. Buying the poorest real estate in
a good location, at least gives you the opportunity to upgrade it. Whereas,
upgrading an entire neighborhood could be difficult, if not impossible. When in
doubt, a drive through will help.<span style="mso-spacerun: yes;"> </span>Contact
your local real estate investment management company or real estate licensee
for assistance.<o:p></o:p></div>
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<span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci,
is considered to be one of the foremost authorities on real estate taxation and
investing and has authored books in these fields published by John Wiley &
Sons of New York. He is the Director of the Center for RE Studies, a real
estate research organization and President of calstatecompanies. To learn more
about the Center, please visit our web site at </span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold;">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="font-family: "Times New Roman",serif; font-size: 5.0pt;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-43812549452534696012020-06-15T11:13:00.001-07:002020-06-15T11:13:49.660-07:00<br />
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<span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">Center for Real
Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 8.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.1pt;"> E-Mail<span style="mso-spacerun: yes;"> </span><a href="mailto:CalStatecompanie@aol.com"><span style="color: blue;">CalStatecompanie@aol.com</span></a><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; letter-spacing: -.1pt;">Media Contact: Center for RE Studies<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-tab-count: 4;"> </span>For
Immediate Release<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman",serif; font-size: 26.0pt; mso-bidi-font-style: italic;">Property Analysis Essentials<o:p></o:p></span></div>
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Before you start to analyze property there is one “Rule” you
should know about. Only after your real estate investment is under contract,
should you prepare a comprehensive analysis that calsstatecompanies discuses in
this article. Don’t waste your time and money before you legally control the property.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">THE
KEY FIGURE IN EVALUATING INVESTMENT PROPERTY<o:p></o:p></span></div>
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The key figure is the internal rate of return (IRR) after
taxes. By comparing this figure with the IRRs from other investments, you will
be able to determine the best investment for you.<o:p></o:p></div>
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It is critical to understand why the IRR is important when
analyzing real estate investments. The IRR shows the time value of money, and
it reflects cash flows based on present values. Return on investments, in terms
of purchasing power, might actually be less, depending on how the cost of
living has changed. Knowing the IRR will help to further quantify your investment
opportunities.<o:p></o:p></div>
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Your analysis should be based on two types of returns,
growth rate and replacement costs. Growth rate projections are based on
historical trends. An analysis performed using this rate will give you a
conservative IRR. An aggressive IRR is obtained by projecting a future selling
price based on future replacement costs. Use both when analyzing buildings.
Knowing both will give you an edge when negotiating. <o:p></o:p></div>
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What you should be looking for is steep growth. Buy complexes
below the cost of replacement. Sell them when values are at least equal to or
greater than replacement costs. This is how to become wealthy!<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">A
SOUND DOWN-MARKET STRATEGY<o:p></o:p></span></div>
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In a down market, your strategy is to buy as far below
current replacement cost as possible. To determine the current replacement
cost, consult local building associations or your web site for the Marshall
&Swift Valuation Service (M&SVS). M&SVS provides information on the
construction costs of different types of buildings through-out the United
States show how costs differ based on style for three types of buildings.<span style="mso-spacerun: yes;"> </span>Local square footage costs can be calculated
using the conversion chart applicable to each area.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">ANALYZING
REAL ESTATE INVESTMENT<o:p></o:p></span></div>
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The methods to analyze real estate investments depend on the
availability of information. They are as follows:<o:p></o:p></div>
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• Qualified appraisers<o:p></o:p></div>
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• Comparable sales data or “comps”<o:p></o:p></div>
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• Gross multiplier approach<o:p></o:p></div>
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• Capitalization rate method<o:p></o:p></div>
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• Essentials of real estate
investment analysis software<o:p></o:p></div>
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<span style="mso-tab-count: 1;"> </span><o:p></o:p></div>
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We prefer using a specially designed computer program in
conjunction with input from consultants and comparable sales data. Since the final
decision rests with us, we want to be absolutely certain of our sources.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">Qualified
Appraisers<o:p></o:p></span></div>
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Appraisers use three appraisal techniques to establish the
current market value. They are the (1) cost, (2) income, and (3) market data
approaches. The cost approach establishes market value based on what it would
cost to replace a reasonable facsimile. The income approach is designed to
calculate the market value based on the expected future income. And the market
data approach uses information gathered from recent comparable sales to determine
value.<o:p></o:p></div>
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The appraiser considers all three methods when making a
final determination as to current market value.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">Comparable
Sales Data or “Comps”<o:p></o:p></span></div>
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In a weak market, it is difficult to use comparable sales
data to determine market value. Sales figures may not be available or may be
stale because properties aren’t moving. Prices, under these circumstances, usually
have no bearing on current market conditions. At best, comparables will give an
indication of trends.<o:p></o:p></div>
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A sample of comparable sales information from the CoStar
Group shows how the information is presented. Local real estate boards can be
of further assistance.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">Gross
Multiplier Approach<o:p></o:p></span></div>
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The gross multiplier approach is the ratio between the gross
rents and the selling price. By comparing gross multiples of other properties
in the same general area, a rule-of-thumb determination of market values can be
made.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">Capitalization
Rate Method<o:p></o:p></span></div>
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The capitalization rate is the ratio between the net income
and the selling price. This rate can also be compared to those of other
buildings in the same neighborhood. Capitalization rates should be adjusted to
reflect the following:<o:p></o:p></div>
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<span style="mso-tab-count: 1;"> </span>• Liquidity:<span style="mso-spacerun: yes;"> </span>How fast can you get your money out?<o:p></o:p></div>
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• Risk factors:<span style="mso-spacerun: yes;"> </span>What is the degree of safety?<o:p></o:p></div>
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• Tax benefits:<span style="mso-spacerun: yes;"> </span>How much money will you save on taxes and
when?<o:p></o:p></div>
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• Ability to borrow money:<span style="mso-spacerun: yes;"> </span>Is it easy to get loans on the real<o:p></o:p></div>
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<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>estate
investment?<o:p></o:p></div>
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• Degree of management activity:<span style="mso-spacerun: yes;"> </span>How much time do you have to put into <span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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</span>managing your investment?<o:p></o:p></div>
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• Expectation of appreciation:<span style="mso-spacerun: yes;"> </span>What is the potential of this real<o:p></o:p></div>
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<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>estate investment?<o:p></o:p></div>
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We generally don’t purchase buildings with a capitalization
rate under 8.5 percent. However, depending on the weight of these factors, we
would consider a lower capitalization rate. Adverse conditions cause the
capitalization rate to be adjusted higher; favorable conditions cause it to be
lowered. <o:p></o:p></div>
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Essentials of Real estate investment Analysis Software<o:p></o:p></div>
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Choose a computer program that fits your needs. You should
select software capable of providing the following features:<o:p></o:p></div>
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<span style="mso-tab-count: 1;"> </span>• Projections
and analysis of cash flows and tax benefits using the IREM <o:p></o:p></div>
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<span style="mso-spacerun: yes;">
</span>format<o:p></o:p></div>
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• Maximum forecasting flexibility<o:p></o:p></div>
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• After-tax IRR<o:p></o:p></div>
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• User friendly<o:p></o:p></div>
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A computer program that has these features makes it easier
to analyze properties. If the data is accurate, your reports will supply you
with the necessary facts to make the right investment decisions.<o:p></o:p></div>
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When inputting data, numerous assumptions must be made. There’s
an expression that communicates the importance of inputting good data. If data
submitted to computer operations came back stamped “verified,” it meant it was
accepted. Reports stamped GIGO meant the opposite! GIGO stands for “garbage in
garbage out.” The same applies to investment data. If the information inputted
is garbage, your out put will be the same.<o:p></o:p></div>
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The computer program should be designed to give an IRR based
on specific assumptions. Confer with your consultants to assist you in making
these assumptions. For example, estimates of tax rates and depreciation should be
made with the help of your tax advisor. When speculating on general business
conditions in the area, your real estate investment manager or real estate broker
should be consulted for advice. These professionals must be able to provide you
with the data needed to make the right assumptions.<o:p></o:p></div>
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<span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci,
is considered to be one of the foremost authorities on real estate taxation and
investing and has authored books in these fields published by John Wiley &
Sons of New York. He is the Director of the Center for RE Studies, a real
estate research organization and President of calstatecompanies. To learn more
about the Center, please visit our web site at </span><span style="color: black; font-family: "Calibri",sans-serif; font-size: 9.5pt; line-height: 107%; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Calibri;"><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a></span><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold;">UTUBE: </span><span style="color: black; font-family: "Calibri",sans-serif; font-size: 9.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Calibri;"><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a></span><o:p></o:p></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-59434931916979596872020-06-01T09:33:00.001-07:002020-06-01T09:33:54.469-07:00<br />
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<span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The Cal State Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="color: windowtext; font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></div>
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</w:wrap></v:rect><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">E-Mail </span></b><a href="mailto:CalStatecompanie@aol.com"><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">CalStatecompanie@aol.com</span></b></a><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b><span style="color: windowtext; font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">
</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Webpage calstatecompanies.com</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 12.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">Media
Contact: The Center for RE Studies <span style="mso-tab-count: 2;"> </span>For:
Immediate Release<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman",serif; font-size: 18.0pt; line-height: 105%;">REAL
ESTATE INVESTMENT OUTLOOK JUNE 2020<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">Why was the real estate industry blind-sided by the
coronavirus and how will we know when it will end?<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">There has been no previous occasion for this kind of
downturn of economic activity. Recessions or severe economic slowdowns are
usually caused by the exchange between economic and/or financial differences
during the period of expansion. According to a leading real estate research
company, calstatecompanies, this time it is very different because the
underlying cause of the downturn initiated from external economic and financial
domain: a highly contagious new coronavirus that has been spreading fast since
the beginning of the year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">Our government has responded by aggressively
curtailing economic and social activity in order to suppress the further spread
of the virus as quickly as possible. Thus, we are seeing the first-ever
recession by government decree – a necessary, temporary, and partial shutdown
of our economy to prevent an even larger humanitarian crisis which is having a
devastating effect on real estate investments. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">Since the beginning of March, approximately 40 million
workers have lost their job in the USA, with 18 million being laid off temporarily
due to the lockdown. According to the US Bureau of Labor Statistics, most of
the 18 million workers are in the lowest income brackets, with an average
weekly income between $300 and $1,100. Under the assumption that this temporary
unemployment lasts around one quarter, private consumption could be lowered by $150
billion, representing a GDP loss of approximately 3% for a given consumption
rate of around 70% of disposable income. It is absolutely paramount for a
sustainable economic recovery that the predominant majority of these job losses
are temporary once the lockdown measures are lifted. Reemployment, especially
in service-related sectors, will return but only gradually. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">The aggressive policy support is expected to release
domestic demand. Persistent pressures in the labor market and mounting external
risks have driven the country’s leadership to stimulate the domestic economy.
Infrastructure spending still remains the main growth stabilizer. We expect the
fiscal deficit to expand meaningfully by a significant increase of percentage
points of GDP rates in the near term. Credit growth is expected to firm up
throughout the year, with a notable amount of funding likely to be directed
into the infrastructure sector. However, the above-mentioned stimulus cannot
fully offset the economic damage throughout the year. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">There is agreement among economists on the need to
stimulate growth once the epidemic is under control. There are concerns about longer
lasting impacts that hamper the recovery (affected sectors, lack of confidence,
and increase in household savings during the lockdowns). Stabilization plans
will therefore gradually have to give way to growth stimulation plans. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 105%;">Given the rapid and large economic and fiscal policy
response and in the absence of major imbalances that would require a prolonged
period of purging and modification, we expect the real estate investment
markets to transition from intense near-term anguish during the virus suppression
phase to a gradual healing over six to 12 months <o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">ABOUT THE AUTHOR:
Eugene E. Vollucci, is considered to be one of the foremost authorities on real
estate taxation and investing and has authored books in these fields published
by John Wiley & Sons of New York. He is the Director of the Center for RE
Studies, a real estate research organization and President of
calstatecompanies. To learn more about the Center, please visit our web site at
</span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span style="color: windowtext; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="color: windowtext; font-family: "Arial",sans-serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-44445638438976941522020-05-11T12:24:00.001-07:002020-05-11T12:24:31.518-07:00<br />
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<span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -1895825920;"><img height="1" src="file:///C:/Users/EUGENE~1/AppData/Local/Temp/msohtmlclip1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 8.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;"> Webpage calstatecompanies.com</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 8.0pt; letter-spacing: -.1pt;"> </span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 8.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 8.0pt; letter-spacing: -.1pt;"> E-Mail<span style="mso-spacerun: yes;"> </span><a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="letter-spacing: -.1pt;">Media
Contact: Center for RE Studies<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-tab-count: 4;"> </span>For
Immediate Release<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="letter-spacing: -.1pt;"><span style="mso-tab-count: 2;"> </span></span></b><i style="mso-bidi-font-style: normal;"><span style="font-size: 14.0pt;"><o:p></o:p></span></i></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 25.0pt; mso-bidi-font-style: italic;">How to Buy
Real Estate at the Right Place<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 25.0pt; mso-bidi-font-style: italic;">And at the Right
Time<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt; mso-bidi-font-style: italic;">RULES TO REMEMBER <o:p></o:p></span></b></div>
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How many times have you heard it said, “The three most
important things to remember when investing in real estate is location, location,
location.” Or as John Paul Getty said there are only two rules to remember,
“Buy when everyone is selling and sell when everyone is buying.” This is calstatecompanies
Standard Operational Procedure (SOP). <o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt;">THE BENEFITS OF BOTTOM FISHING<o:p></o:p></span></b></div>
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Remember, there are always pockets of opportunity for real
estate investments. Good markets exist all over the world at varying times.<span style="mso-spacerun: yes;"> </span>Concentrate on weak markets, not weak
properties. A weak market is the most favorable condition in which to buy.
Prices are depressed and profit potential is high. Sellers just want to get
out. Buying in a depressed market is called “bottom fishing.”<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt; mso-bidi-font-style: italic; text-transform: uppercase;">The
Key to Evaluating Locations<o:p></o:p></span></b></div>
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Focus on areas where the local economy is basically strong
and the current downturn is caused primarily by overbuilding. The U.S. Bureau
of the Census publishes building permit activity for buildings five units and up
for Metropolitan Statistical Areas (MSAs). Identify markets with the largest
gains in building permits from one year to another. If you discover a
“construction bubble,” it could mean you’ve located an ideal market. With a
diversified local economy, the overbuilding should be absorbed. A weak market
caused by conditions other than overbuilding should be scrutinized carefully.<o:p></o:p></div>
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Real estate investing often makes money for the second owners
in overbuilt markets, not the first. Builders get paid for building and they will
keep on building as long as they get paid. More often than not, banks are the
ones doing the paying.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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The market becomes deluged with an excess of inventory. This
is when you should step in.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt; mso-bidi-font-style: italic; text-transform: uppercase;">Employment
Trends<o:p></o:p></span></b></div>
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Base employment is probably the single most important factor
contributing to the economic health of an area. In evaluating employment trends,
be careful of construction employment. During boom-and-bust building activity,
the labor base can become distorted by construction related jobs. If possible,
eliminate construction employment figures when plotting trends. Predicting
growth industries and where they will be located can give you a further indication
of where future employment growth will take place.<o:p></o:p></div>
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Talk with the local city planner to determine the direction
of city growth. Plans for shopping malls, universities, and business parks create
a potential demand for employment and desirable apartment locations.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt; mso-bidi-font-style: italic; text-transform: uppercase;">Demographic
Factors Affecting Apartments<o:p></o:p></span></b></div>
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Demographic factors are also important in evaluating demand.
People tend to marry later and divorce is on the increase, both of which result
in a larger single population. In addition, people are living longer. The
number of households is increasing, and the size is decreasing. The
affordability of single-family homes is also decreasing.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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Demographically, look for an area in which there are a
higher percentage of females to males, younger and/or older adults as opposed to
middle aged, singles rather than married, smaller families over larger families
and renters over non-renters in evaluating favorable rental areas.<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14.0pt; mso-bidi-font-style: italic;">APARTMENT CYCLES</span><i style="mso-bidi-font-style: normal;"><o:p></o:p></i></b></div>
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The “when” to buy and sell is just as important as the
“where.” With bad timing you’ll strike out every time. To improve your timing,
you must become familiar with apartment cycles. Calstatecompanies issues a quarterly
report “Market Cycles” that will improve your timing.<o:p></o:p></div>
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Cycles results from the influence supply and demand have on
the marketplace. Economists spend countless hours trying to accurately predict
them, and gurus for the current year are the ones who guessed correctly the
previous year. As long as their crystal ball remains clear, they will continue
to be called on for their advice. One false prediction and they are ousted from
the Nostradamus Hall of Fame.<o:p></o:p></div>
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Apartment cycles are difficult to forecast. Yet, it’s essential
to have projections when buying and selling. Understanding them will give you
the insight to make intelligent decisions.<o:p></o:p></div>
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<span style="color: #333333; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the
foremost authorities on real estate taxation and investing and has authored books
in these fields published by John Wiley & Sons of New York. He is the
Director of the Center for RE Studies, a real estate research organization and
President of calstatecompanies. To learn more about the Center, please visit
our web site at </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; line-height: 107%; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="http://www.calstatecompanies.com/"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a></span><span style="color: #333333; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="font-size: 14.0pt; mso-bidi-font-weight: bold;">UTUBE:
</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a></span><span style="font-size: 5.0pt;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-70544753035766911462020-05-04T11:23:00.001-07:002020-05-04T11:23:37.222-07:00<br />
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<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 72.0pt; letter-spacing: -.2pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; text-transform: uppercase;"><span style="mso-list: Ignore;"><img alt="*" height="93" src="file:///C:/Users/EUGENE~1/AppData/Local/Temp/msohtmlclip1/01/clip_image002.jpg" width="93" /><span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century",serif; font-size: 72.0pt; letter-spacing: -.2pt; mso-bidi-font-family: "Courier New"; text-transform: uppercase;">News<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">The Cal State
Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate
Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><!--[if gte vml 1]><v:rect
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 2px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -1895825920;"><img height="2" src="file:///C:/Users/EUGENE~1/AppData/Local/Temp/msohtmlclip1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com"><span style="color: blue;">CalStatecompanie@aol.com</span></a> </span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;"> <span style="color: blue;">Webpage calstatecompanies.com</span><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; letter-spacing: -.1pt;">Media Contact: The Center for RE Studies <span style="mso-tab-count: 2;"> </span>For: Immediate Release<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 22.0pt; mso-bidi-font-style: italic;">Discover a Vehicle
to Invest in Real Estate Using Little of Your Own Money<o:p></o:p></span></b></div>
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How can you invest in real estate
using little of your own money? <span style="mso-spacerun: yes;"> </span>In this
article, you will discover an amazing way of gathering investors that won’t break
your bank.<o:p></o:p></div>
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Calstatecompanies introduces a
relatively unknown form of ownership to effectively gather active investors. It
is called tenants-in-common (TIC). <span style="mso-spacerun: yes;"> </span>It’s
an easy, low-cost method of funding real estate investments while maintaining tax
benefits.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">OWNERSHIP
FEATURES THAT PROVIDE FLEXIBILITY<o:p></o:p></span></div>
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Tenants-in-common is a form of ownership that may involve two
or more people, and it does not require a marital relationship. With a tenants-in-common
ownership:<o:p></o:p></div>
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1. There can be two or more co-owners,
but their ownership interests need not be equal. For example, if three people
are co-owners, one could have a share of 25 percent, another 30 percent, and
the third 45 percent.<o:p></o:p></div>
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2. There is no automatic right of
survivorship. Unlike joint tenancy, a share in the property held by one owner
does not automatically pass to the other owners at death. When a tenants-in-common
owner dies, that owner’s interest is transferred to his or her heirs and not to
the other tenants-in-common, unless there’s an agreement giving title to the
co-owners.<o:p></o:p></div>
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3. Interest held by tenants-in-common
may be sold separately by individual owners. In many cases, when
tenants-in-common first acquire the property, they agree to give the other
co-owners a “first right of refusal” to buy out one another.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">WAYS
TO SAVE WITH A TENANTS-IN-COMMONOWNERSHIP<o:p></o:p></span></div>
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Here are seven advantages of the tenants-in-common ownership
over other entities:<o:p></o:p></div>
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1. Low set-up costs: Compared to
other forms of ownership, tenants-in-common has one of the lowest set-up costs.
You don’t need an attorney to prepare offering circulars or registration with
governmental agencies. In fact, all that is required is to have the names of
the owners recorded when the transaction closes. A formal document is not necessary,
though we would recommend one. Accounting fees for preparing partnership, trusts,
and corporation returns are eliminated as well as state and federal income
taxes.<o:p></o:p></div>
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2. Low down payment: In some public
offerings, restrictions are imposed on the use of leverage. Using the tenants-in-common
form of ownership, there are none. This is an important investment strategy in purchasing
and selling midsize apartment complexes. The lower the down payment, the more
leverage, and the more property you can control.<o:p></o:p></div>
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3. Active voice in management: An
important investment goal is to reduce taxes. The tenants-in-common form of
ownership does this by allowing an active voice in management.
Tenants-in-common owners, with the help of qualified consultants, are extremely
effective in making the right decisions. The old adage “two heads are better than
one” hits the bull’s-eye, especially when these heads are concentrating on becoming
wealthy. <o:p></o:p></div>
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4. Ease of transferability: Unlike
a certification of ownership in a partnership, the tenants-in-common ownership
has a greater degree of transferability. <span style="mso-spacerun: yes;"> </span>Each owner’s name is on the deed and is
recorded. An owner’s interest can be sold, hypothecated, willed, or transferred
without the consent of the other co-owners, and each owner has complete control
of his or her interest. In evaluating collateral, lenders generally give more
credence to an interest in a recorded tenants-in-common interest than in a
limited partnership.<o:p></o:p></div>
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5. Economy of scale: Because
investment dollars are being accumulated by a group, there are more dollars
available to purchase larger properties. Many individual investors don’t have
the opportunity to use the economies of scale unless they form a group. How
does this concept apply? If one unit is vacant in a four-unit complex, you have
25 percent vacancies. On the other hand, if one unit is vacant in a
40-unitcomplex, the vacancies would be 2.5 percent.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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Just think about it! When the
carpet layer is called, to whom do you think the better square-foot price will
be given, the owner of the 40-unit building or the four-unit building? The same
applies to all vendors.<o:p></o:p></div>
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6. No mortgage or qualifying
restrictions: Unlike most public limited partnerships, tenants-in-common
ownership doesn’t have any restrictions for financing or investor
qualifications. Financing can be structured to give the greatest flexibility to
each individual owner either at the time of purchase or sale. The group is
formed based on the needs and desires of its members not on standards imposed by
governmental agencies. Individual owners don’t need a minimum or maximum net worth
to invest. They’re not required to have someone attest to their capability of
making their own investment decisions. Nor are they forced to have experts make
these decisions for them.<o:p></o:p></div>
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7. Tax advantages: Using the
tenants-in-common form of ownership, gives you the opportunity to become an
active investor. As such, you can qualify for the $25,000 per year write-off
against your salary, dividends, interest, and other income. This form of ownership
provides the flexibility needed to implement the tax-saving strategies
discussed earlier. Other forms of ownership satisfying only passive investor
requirements do not have these capabilities.<o:p></o:p></div>
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8. Neither a real estate nor a
securities license is required to form a private tenants-in-common group to
invest in real estate. If you do not manage or control the group, it doesn’t
have to be registered or qualified with any governmental agency as a security.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">TAX
IMPACT OF TENANTS-IN-COMMON OWNERSHIP<o:p></o:p></span></div>
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Deferred income on recognition of taxable gain when selling
rental property (the Internal Revenue code section 1031) mandates that the tenant-in-common
co-ownership must meet these four requirements:<o:p></o:p></div>
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1. To form a tenants-in-common
group, each of the co-owners must hold interest as tenants-in-common. No one
can previously have held interest in the property in any other legal entity
(for example partnership).<o:p></o:p></div>
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2. The allocation of income and
expenses as well as liability for blanket and encumbrance shall be in accordance
with the co-owner’s percentage interest and ownership interest.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal" style="margin-left: .5in;">
3. All of the co-owners of the
entity must have the right to vote on all issues of the ownership. An owner or
sponsor or manager may advance funds to cover payments due from another co-owner.
This debt must be paid within 31 days.<o:p></o:p></div>
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4. There is an exit requirement
that each co-owner retains a right to transfer, petition, or encumber their
ownership interest.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">New
Guidelines for Tenants-in-Common Interest <o:p></o:p></span></div>
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Procedure 2022-22 provides guidelines in the use of fractional
interest in the replacement properties in the 1031 exchange. The key criteria
are:<o:p></o:p></div>
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<div class="MsoNormal" style="text-indent: .5in;">
1. The number of tenants-in-common
cannot exceed 35.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal" style="margin-left: .5in;">
2. The sponsor of interest may own
the property or an interest there for <span style="mso-spacerun: yes;"> </span>only 6 months before 100 percent of the
interest can be sold.<o:p></o:p></div>
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<br /></div>
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3. Any decision having a material
impact on the property, owners must be approved unanimously by the owners.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal" style="margin-left: .5in;">
4. The management agreement must be
renewed annually and must provide for market rate compensation.<o:p></o:p></div>
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<span style="font-size: 14.0pt; mso-bidi-font-style: italic;">SUMMARY<o:p></o:p></span></div>
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There are definite advantages to group ownership. Probably
the most prevalent is economy of scale. The tenants-in-common form of ownership
provides a simple, low-cost way for investors to form groups, while maintaining
many tax benefits.<o:p></o:p></div>
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<div class="MsoNormal" style="line-height: 107%; margin-bottom: 8.0pt; text-indent: .5in;">
<span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci,
is considered to be one of the foremost authorities on real estate taxation and
investing and has authored books in these fields published by John Wiley &
Sons of New York. He is the Director of the Center for RE Studies, a real
estate research organization and President of calstatecompanies. To learn more
about the Center, please visit our web site at </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; line-height: 107%; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a></span><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold;">UTUBE: </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a></span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-16992443938450321732020-04-08T12:17:00.003-07:002020-04-08T12:17:55.100-07:00<br />
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</span></span></span><!--[endif]--><span style="font-size: 14.0pt;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 48.0pt; letter-spacing: -.2pt; text-transform: uppercase;">News<o:p></o:p></span></b></div>
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<span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.2pt;">The Cal State Companies:<span style="mso-spacerun: yes;"> </span>Center
for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 10.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.2pt;"> </span><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.15pt;">Cal State
Properties </span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 10.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.15pt;"> Cal State
Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</w:wrap></v:rect><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.1pt;">E-Mail </span></b><a href="mailto:CalStatecompanie@aol.com"><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-size: 10.0pt; letter-spacing: -.1pt;">CalStatecompanie@aol.com</span></b></a><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.1pt;"> </span></b><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.15pt;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-family: Symbol; font-size: 10.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.1pt;"> </span></b><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-size: 10.0pt; letter-spacing: -.1pt;">Webpage calstatecompanies.com</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 10.0pt; letter-spacing: -.1pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="color: windowtext; font-size: 14.0pt; letter-spacing: -.1pt;">Media
Contact: The Center for RE Studies <span style="mso-tab-count: 2;"> </span>For:
Immediate Release<o:p></o:p></span></b></div>
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<span style="font-size: 22.0pt; line-height: 136%;">Three
Impending Scenarios for Real Estate<o:p></o:p></span></div>
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<span style="font-size: 16.0pt; line-height: 115%;">We at the Calstatecompanies Center
for Real Estate Studies have been investigating the pandemic’s effect on the
real estate market using three different scenarios that may potentially emerge.<o:p></o:p></span></div>
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<span style="font-size: 16.0pt; line-height: 115%;"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Deploying different scenarios allowed us to
investigate the impacts of the virus on real estate markets and the most
consistent investment conclusions. We developed three scenarios to highlight
the influence. Before looking at the specifics of each scenario, we started by
laying out the common ground for all three scenarios followed by the
description of a downside scenario, an upside scenario and our base scenario. <o:p></o:p></span></div>
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</w:wrap></v:imagedata></v:shape><span style="font-size: 16.0pt; line-height: 115%;"><span style="mso-spacerun: yes;"> </span>Currently, the full impact of the disease
on the numbers of infections, mortality and recovered people is unknown. The
measures necessary to contain the spreading of the virus are also uncertain.
Assumptions about the intensity and the effectiveness of these measures are
reflected in the outcomes of these scenarios.<o:p></o:p></span></div>
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<b><u><span style="font-size: 16.0pt; line-height: 115%;">Downside scenario</span></u></b><b><span style="font-size: 16.0pt; line-height: 115%;"> </span></b><span style="font-size: 16.0pt; line-height: 115%;">In the downside scenario, the <a href="https://www.blogger.com/null" name="_Hlk36725918">containment
policies </a>are not enough to halt the spread of the coronavirus. Our governments
would be forced to extend current policies. These policy measures may prove to
be insufficient and the real estate market may not recover.<o:p></o:p></span></div>
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<a href="https://www.blogger.com/null" name="_Hlk36726361"><b><u><span style="font-size: 16.0pt; line-height: 115%;">Consequences</span></u></b></a><span style="mso-bookmark: _Hlk36726361;"><u><span style="font-size: 16.0pt; line-height: 115%;"> </span></u></span><span style="mso-bookmark: _Hlk36726361;"></span><a href="https://www.blogger.com/null" name="_Hlk36726430"></a><span style="mso-bookmark: _Hlk36726430;"><span style="font-size: 16.0pt; line-height: 115%;">Given this scenario, we would likely
recommend a “sell” in our quarterly newsletter<i> Market Cycles</i>. </span></span><span style="font-size: 16.0pt; line-height: 115%;">The stronger USD, elevated
uncertainty and continued disruptions would likely cause us to close our real
estate investments. According to Green Advisors, shares of property-owning
trusts, are down 42% from their peak Feb. 21 through March 23. Mall values? Off
61%. Hotels? Down 52%. <span style="mso-no-proof: yes;">Apartments? </span>Down
43%. Compare that damage with a 33% drop in the broad market's S& P 500
benchmark investments to zero.<o:p></o:p></span></div>
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<span style="font-size: 16.0pt; line-height: 115%;"><span style="mso-spacerun: yes;"> </span><b><span style="mso-spacerun: yes;"> </span><u>Upside Scenario</u> </b>The rate of new contaminations
would start to decelerate sooner and faster than expected causing our government
to gradually relax containment policies, allowing GDP growth to normalize. Real
estate would rebound from depressed level restoring demand. The size of fiscal
policy measures would prove to be enough to offset income and earnings losses
sooner than expected, initiating a recovery during the second half of 2020.<o:p></o:p></span></div>
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<a href="https://www.blogger.com/null" name="_Hlk36807316"><b><u><span style="font-size: 16.0pt; line-height: 115%;">Consequences </span></u></b></a><span style="mso-bookmark: _Hlk36807316;"><span style="font-size: 16.0pt; line-height: 115%;">Given this scenario, we would likely recommend a “buy” in our quarterly
newsletter<i> Market Cycles</i>. </span></span><span style="font-size: 16.0pt; line-height: 115%;">It may give breathing space for long-term benefits from a
quick recovery. Inflation and wage pressures would likely be close to zero.<span style="mso-spacerun: yes;"> </span>With containment, the expectation of the
final completion of the disease, real estate would be the preferred investment.<o:p></o:p></span></div>
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<span style="font-size: 16.0pt; line-height: 115%;"><span style="mso-spacerun: yes;"> </span><b><u>Base Scenario </u></b>This
scenario mainly outlines our basic thinking about the impact of the outbreak of
coronavirus on the real estate market. First and most importantly, we expect
the current situation to be temporary. This scenario may only slow the rising
rate of infections. Our politicians, however, would be more reluctant to take additional
restrictive measures and would likely only abandon the most restrictive
measures. Real estate markets would recover slowly. However, a potential second
wave of infections would force our government to immediately reintroduce
restrictions which may remain in place for longer. In such a case, demand may
only rebound gradually. As the restriction are not sufficient and timely, the
real estate market will continue to struggle.<o:p></o:p></span></div>
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<b><u><span style="font-size: 16.0pt; line-height: 115%;">Consequences
</span></u></b><span style="font-size: 16.0pt; line-height: 115%;">Given this scenario,
we would likely recommend a “hold” in our quarterly newsletter<i> Market Cycles</i>.</span><v:shape id="Picture_x0020_5" o:allowoverlap="f" o:spid="_x0000_s1026" style="height: .8pt; left: 0; margin-left: 48pt; margin-top: 961.35pt; mso-height-percent: 0; mso-height-percent: 0; mso-height-relative: page; mso-position-horizontal-relative: page; mso-position-horizontal: absolute; mso-position-vertical-relative: page; mso-position-vertical: absolute; mso-width-percent: 0; mso-width-percent: 0; mso-width-relative: page; mso-wrap-distance-bottom: 0; mso-wrap-distance-left: 9pt; mso-wrap-distance-right: 9pt; mso-wrap-distance-top: 0; mso-wrap-style: square; position: absolute; text-align: left; visibility: visible; width: .55pt; z-index: 251662336;" type="#_x0000_t75">
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</w:wrap></v:imagedata></v:shape><span style="font-size: 16.0pt; line-height: 115%;"> We would act more
cautiously as demand may not be strong enough to revitalize growth. Given the
uncertainty about the future development of the disease, real estate markets
are not expected to rise to pre-crisis levels. With the gradual and slow return
of the real estate market economy, it may be advisable to diversify your real
estate investments in “pockets of opportunity” defined by calstatecompanies Center
for Real Estate Studies.<o:p></o:p></span></div>
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<span style="color: #333333; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the
foremost authorities on real estate taxation and investing and has authored
books in these fields published by John Wiley & Sons of New York. He is the
Director of the Center for RE Studies, a real estate research organization and
President of calstatecompanies. To learn more about the Center, please visit
our web site at </span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold;">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="color: windowtext; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold;">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="color: windowtext; font-size: 16.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-33083079398371192192020-03-15T12:44:00.001-07:002020-03-15T12:44:52.372-07:00<br />
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</span></span></span><!--[endif]--><span style="font-family: "Century",serif; font-size: 100.0pt; mso-bidi-font-family: "Courier New";">News<o:p></o:p></span></div>
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<span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">The Cal State Companies:<span style="mso-spacerun: yes;">
</span>Center for Real Estate Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Gourmand",sans-serif; font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><!--[if gte vml 1]><v:rect
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -1895825920;"><img height="1" src="file:///C:/Users/EUGENE~1/AppData/Local/Temp/msohtmlclip1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span style="font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a> </span></b><span style="font-family: "Tiempo",serif; font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"><span style="mso-spacerun: yes;"> </span></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;"> <span style="color: blue;">Webpage
calstatecompanies.com</span><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="letter-spacing: -.1pt;">Media
Contact: The Center for RE Studies <span style="mso-tab-count: 2;"> </span>For:
Immediate Release<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 26.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style";">Taxpayers Can’t
Believe These Medical Tax Deductions<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style";">The single most important thing to remember to get a tax deduction for
medical expenses is to “get the prescription”. <span style="mso-spacerun: yes;"> </span>This document will survive a tax audit. This
article will disclose some of the eye-opening medical deductions the IRS has
allowed.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 22.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style";">Medical deductions<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 12.0pt;">You can only deduct medical expenses that exceed the
limitations under the new tax rules, but the IRS and court decisions have
expanded the definition of deductible medical costs. Plan ahead to take advantage
of as man</span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">y</span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 12.0pt;"> </span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">medical
expenses as possible.<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">Medical deductions can be taken for the costs of
diagnosis, treatment or prevention of disease or for affecting any structure or
function of the body (except for unnecessary cosmetic surgery). Limitations:
Treatment must be specific and not for general health improvement.<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">Example: The IRS successfully denied deductions for the
cost of weight control and stop-smoking classes that were designed to improve
general health, not to treat a specific ailment or disease. On the other hand,
a person with a health problem specifically related to being overweight such as
high blood pressure might be allowed the deductions.<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">If an employer tells an overweight employee to lose weight
or leave, and the boss has previously enforced such a rule, the plump employee
can deduct the cost of a weight-loss program, because money spent to help keep
a taxpayer’s job is deductible. The IRS says it will allow a deduction if a
physician prescribes a weight reduction program for the treatment of
hypertension, obesity or hearing problems. The same could go for a person whose
doctor certifies that an end to cigarette smoking is necessary for a specific
medical reason (such as emphysema).<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">The same logic applies to home improvements. The cost of
a swimming pool might be deductible if it is specifically necessary for a
person who has polio, as would the cost of an elevator for a heart patient.<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">Caution: <span style="mso-spacerun: yes;"> </span>Only the
actual cost is deductible. The IRS makes taxpayers subtract from the cost of an
improvement the amount that the features add to the value of the residence<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">Example: If a swimming pool costs $10,000 but adds $4,000
to the value of the property: only $6,000 would be tax-deductible. To determine
the value have the property appraised before and after the improvement (The
appraisal fee is deductible as a miscellaneous itemized deduction).<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 22.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style";">IRS Deductions can be arbitrary:<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;"><span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 12.0pt;">A </span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">professional singer was not allowed to deduct the cost of
throat treatments as a business expense, but an IRS agent did allow a deduction
for a dancer who found it necessary to her career to have silicone breast
implants.<o:p></o:p></span></div>
<div class="Style2">
<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; letter-spacing: -.35pt; line-height: 116%; mso-bidi-font-family: "Bookman Old Style"; mso-bidi-font-size: 11.0pt;">Medically unproven treatment is generally deductible,
since the IRS has taken the position that it cannot make judgments in the
medical field. <span style="mso-spacerun: yes;"> </span>For example, Laetrile
treatments are deductible if the taxpayer receives them. So is legal
marijuana.<o:p></o:p></span></div>
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<span class="CharacterStyle1"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;">A medically prescribed diet is deductible
only to the extent that its cost exceeds that of a regular diet. Since fish, vegetables,
breads, and poultry are common elements of a normal diet, it is highly doubtful
that the IRS would allow a deduction for them.<o:p></o:p></span></span></div>
<div class="MsoNormal">
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<div class="MsoNormal">
<span class="CharacterStyle1"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt;">Taxpayers on special diets may be able to
get some kind of deduction under certain circumstances. For example, when a person
who was traveling was required to have a salt-free diet, the Tax Court did
allow him to deduct charges imposed by restaurants for preparing such meals, as
well as taxi fares that he had to pay to get to the restaurants that were
willing to prepare them.<o:p></o:p></span></span></div>
<div class="Style1" style="line-height: 110%; margin-bottom: 5.4pt; margin-left: 0in; margin-right: 0in; margin-top: 1.8pt; mso-layout-grid-align: auto;">
<br /></div>
<div class="Style1" style="line-height: 110%; margin-bottom: 5.4pt; margin-left: 0in; margin-right: 0in; margin-top: 1.8pt; mso-layout-grid-align: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Garamond",serif; font-size: 22.0pt; letter-spacing: -.05pt; line-height: 110%; mso-bidi-font-family: Garamond;">Unusual Medical Deductions<o:p></o:p></span></b></div>
<div class="Style1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .15in; margin-right: .25in; margin-top: 0in; mso-layout-grid-align: auto; text-indent: -.15in;">
<span class="CharacterStyle1"><span style="font-size: 12.0pt;">•</span></span><span style="font-family: "Arial",sans-serif; font-size: 12.0pt;"> Acupuncture</span><span style="font-family: "Arial",sans-serif; font-size: 11.0pt;"><o:p></o:p></span></div>
<div class="Style2" style="line-height: 87%;">
<span class="CharacterStyle1">• Addiction
therapy<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<div class="Style2" style="line-height: 85%; margin-right: .15in;">
<span class="CharacterStyle1"><span style="letter-spacing: -.2pt;">• Clarinet and lessons
bought on a doctor's advice to correct tooth defects.<o:p></o:p></span></span></div>
<div class="Style2" style="line-height: 85%; margin-right: .15in;">
<span class="CharacterStyle1">• Companion hired to escort blind children to school <o:p></o:p></span></div>
<div class="Style2" style="line-height: 78%;">
<span class="CharacterStyle1">• Contact
lens insurance<o:p></o:p></span></div>
<div class="Style2">
<span class="CharacterStyle1">• Dentures, hearing aids, orthopedic
shoes.<o:p></o:p></span></div>
<div class="Style2">
<span class="CharacterStyle1">• Detachable home installation such
as air</span><span class="CharacterStyle1"><i><span style="font-size: 9.0pt; line-height: 116%;"> </span></i>conditioners, heaters, </span><span class="CharacterStyle1"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 116%;">humidi</span></span><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 116%;">fiers,
air cleansers used for the benefit of sick person<o:p></o:p></span></div>
<div class="Style2" style="line-height: 87%;">
<span class="CharacterStyle1">• Dust-free
room for people who have allergies.<o:p></o:p></span></div>
<div class="Style2" style="line-height: 87%;">
<span class="CharacterStyle1">• Elastic
stockings ordered by a doctor to alleviate varicose veins<o:p></o:p></span></div>
<div class="Style2" style="line-height: 85%;">
<span class="CharacterStyle1"><span style="letter-spacing: -.2pt;">• Extra rent for a larger apartment required to make
room for a nurse/attendant<o:p></o:p></span></span></div>
<div class="Style2" style="line-height: 85%;">
<span class="CharacterStyle1">•
Fluoridation device installed at home on a dentist’s recommendation</span><span style="letter-spacing: -.2pt;"><o:p></o:p></span></div>
<div class="Style2" style="line-height: 87%;">
<span class="CharacterStyle1">•
Long-distance telephone counseling for a person with a drug problem<o:p></o:p></span></div>
<div class="Style2" style="line-height: 85%;">
<span class="CharacterStyle1"><span style="letter-spacing: -.05pt;">• Maintenance costs of a home swimming pool for a
person with emphysema<o:p></o:p></span></span></div>
<div class="Style2" style="margin-bottom: .1in;">
<span class="CharacterStyle1">•
Mattress and boards to alleviate an arthritic condition<o:p></o:p></span></div>
<div class="Style2" style="margin-bottom: .1in;">
<span class="CharacterStyle1">• Sex
counseling by a psychiatrist for a husband and wife<o:p></o:p></span></div>
<div class="Style2" style="margin-bottom: .1in;">
<span class="CharacterStyle1">•
Trained cat to alert its hearing-impaired owner to unusual sounds</span><o:p></o:p></div>
<div class="Style2" style="margin-bottom: .1in;">
<span class="CharacterStyle1">• Wigs to
alleviate mental stress caused by loss of hair<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 107%; margin-bottom: 8.0pt; text-indent: .5in;">
<span style="color: #333333; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;">ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the
foremost authorities on real estate taxation and investing and has authored
books in these fields published by John Wiley & Sons of New York. He is the
Director of the Center for RE Studies, a real estate research organization and
President of calstatecompanies. To learn more about the Center, please visit
our web site at </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; line-height: 107%; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="http://www.calstatecompanies.com/"><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a></span><span style="color: #333333; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
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<span style="font-size: 14.0pt; mso-bidi-font-weight: bold;">UTUBE:
</span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: Calibri;"><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a></span><span style="font-size: 14.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-57827589287723022762020-03-06T12:41:00.001-08:002020-03-06T12:41:01.538-08:00<br />
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<span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";">The Cal State
Companies:<span style="mso-spacerun: yes;"> </span>Center for Real Estate
Studies </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";">Cal State Properties </span><b style="mso-bidi-font-weight: normal;"><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span></b><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"> Cal State Investment LTD Partnership</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.2pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></div>
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</w:wrap></v:rect><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">E-Mail </span><a href="mailto:CalStatecompanie@aol.com"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";">CalStatecompanie@aol.com</span></a><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> </span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.15pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;"><span style="mso-char-type: symbol; mso-symbol-font-family: Symbol;">¨</span></span><span style="font-family: "Times New Roman",serif; font-size: 9.0pt; letter-spacing: -.1pt; mso-fareast-font-family: "Times New Roman";"> Webpa<span style="color: black;">ge</span><span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<span style="font-size: 22.0pt; line-height: 107%;">Real Estate Investment Conclusions<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span style="font-size: 22.0pt; line-height: 107%;">and the Coronavirus<o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>The outbreak
of the coronavirus<span style="mso-spacerun: yes;"> </span>and the
spread of the disease to other parts of the world have caused rising
fears of a global pandemic, with an immediate negative impact on real
estate markets. </span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>Moreover,
vulnerability increased over the course of last year, making prospects
for early 2020 all the more uncertain. The US, the world’s
second-largest economy, appeared relatively resilient, but 2.1% real GDP
growth in the fourth quarter of 2019 hardly qualifies as thriving. <br />
<br />
<span style="mso-spacerun: yes;"> </span>The lack of Chinese demand
is also likely to take a toll on the US economy, where China plays an
important role as America’s third-largest and most rapidly growing
export market. The sharp plunge in a preliminary tally of US purchasing
managers’ sentiment for February hints at just such a possibility and
underscores the time-honored adage that no country is an oasis in a uncertain
global economy.<br style="mso-special-character: line-break;" />
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<span style="color: #222222; font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>The
coronavirus is undoubtedly causing a significant disruption to economic
activity in the US. The magnitude of US growth is highly uncertain, as it
depends on the extent that it spreads, the length of contagion, the
measures taken by the US to curtail the risk of infection and the
timeframe until an appropriate vaccine has been developed. This
uncertainty with respect to the ultimate impact on economic activity
will keep a real estate market volatility higher. <o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>But as
long as the outcome of the current situation is highly uncertain, we
should continue to stick to buying properties in “pockets of
opportunity” areas as reported in our companies’ quarterly newsletter<i>
Market Cycles.</i> As historical evidence shows, the outbreaks of such
diseases are temporary in nature.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"> </span>Remember, real estate allows you
to control your risk because you can actively participate in the
decision-making process. Passive investments such as stocks don’t give
you this opportunity. Movements in real estate values are less erratic
than in the stock market. Most people don’t understand the economic
forces influencing the market. Since real estate is less volatile, it’s
easier to control and to understand.<span style="mso-spacerun: yes;">
</span>Real estate is tangible. You can touch it, you’ve been exposed
to it all your life, and you can identify with it. As a result of this
familiarity, you are better able to understand it.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="color: #222222; font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>In the end,
epidemiologists will have the final say on the endgame for coronavirus
and its economic impact. While that science is well beyond our
expertise, we take the point that the current strain of coronavirus
seems to be more contagious but less lethal than SARS was in early
2003.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">ABOUT THE
AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost
authorities on real estate taxation and investing and has authored
books in these fields published by John Wiley & Sons of New York.
He is the Director of the Center for RE Studies, a real estate research
organization and President of calstatecompanies. To learn more about
the Center, please visit our web site at </span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman",serif; font-size: 14.0pt; line-height: 107%; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">UTUBE:
</span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="font-family: "Times New Roman",serif; font-size: 14.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<br />EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-47519600711344974292020-02-25T12:28:00.000-08:002020-02-25T12:28:07.435-08:00<div class="Default" style="text-indent: 0.5in;">
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<span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.2pt;">The Cal State Companies: Center for Real Estate Studies </span><b><span style="font-family: Symbol; font-size: 9pt; letter-spacing: -0.1pt;">¨</span></b><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.2pt;"> </span><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.15pt;">Cal State Properties </span><b><span style="font-family: Symbol; font-size: 9pt; letter-spacing: -0.1pt;">¨</span></b><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.2pt;"><o:p></o:p></span></b></div>
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" o:spid="_x0000_s1026" stroked="f" strokeweight=".05pt" style="height: 0.95pt; left: 0px; margin-left: 0px; margin-top: 0px; position: absolute; text-align: left; visibility: visible; width: 540pt; z-index: -251656192;"><w:wrap anchorx="margin"></w:wrap></v:rect><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.1pt;">E-Mail </span><a href="mailto:CalStatecompanie@aol.com"><span style="color: blue; font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.1pt;">CalStatecompanie@aol.com</span></a><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.1pt;"> </span><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.15pt;"> </span><span style="font-family: Symbol; font-size: 9pt; letter-spacing: -0.1pt;">¨</span><span style="font-family: "Times New Roman", serif; font-size: 9pt; letter-spacing: -0.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 24pt; line-height: 34.24px; text-indent: 0px;">Coronavirus and the Real Estate Markets</span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt;">The coronavirus has been the toughest force behind the recent volatility in real estate markets, which has been running uninterrupted since October 2019. We should be aware that real estate markets could react ahead of the peak of the epidemic, as they tend to overreact at the beginning of a crisis and then stabilize and rebound, despite the continuation of negative news. Unless this doubt is able to disrupt our economy into a shock wave – which is not thinking now – excessive downward setbacks could provide an opportunity for investors to acquire real estate with attractive valuations and good fundamentals.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;">Brexit and the US/China trade impasse were the headline stories of 2019, but the probability of a worst-case scenario on both issues has meanwhile clearly diminished. We see sufficient goodwill in the most recent US/China rhetoric to suggest that some of the previously announced tariffs could be cancelled rather than just postponed. Such an outcome might provide much needed confidence. However, the US, economic growth is expected to slow down in the near term, as the effects of weak growth, uncertainty and slower hiring continue to weigh on real estate investment. Nevertheless, policy actions by the government and the central bank to ease and maintain supportive financial conditions, lower rates, sound economic activity in the US service sector and robust job creation should result in sustainable growth of disposable income, strong domestic demand and private consumption, and thus drive US GDP higher in 2020. The US housing market could become a further source for an acceleration of economic growth in the US. Moreover, credit score requirements for new mortgages have eased compared to the level in 2018.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;">The decline in mortgage rates in 2019 has substantially improved the buy-to-rent and payment-to-income affordability ratios. According to the US Census Bureau, the median price-to-rent ratio (<i>median home value divided by the median annual rent equals the median price-to-rent ratio</i>) has fallen to 17.91, a level which compares to the ratios seen in 2015/2016 and is only slightly higher than the median ratio of 16 during 2004 to 2006. In 2007/2008, during the period when the US real estate market heated up, this ratio moved to 24.5, and then declined in the aftermath of the financial crisis back to below 20 in 2011. A very similar picture emerges by looking at the payment-to-income affordability ratio, which also stands at levels comparable with those of 2015/2016.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt;">Another phenomenon is now clearer. The excess homes built prior to the crisis have finally been digested, and the US housing market is now entering a period of overall scarcity, in which potential housing demand exceeds housing starts and housing inventories. US household formation is now growing faster than housing starts, which indicates that investments to grow the housing stock are needed to fill this gap. `Average annual household formations have risen since the period between 2013 and 2016, when they stood at around 1 million per year, and in 2019 now stand at approximately 1.45 million, an acceleration of about 45%, according the US Census Bureau. For the period 2017 to 2019, housing starts dropped behind household formations when they increased by only 18%. Against the backdrop of low funding costs and robust income projections for the next couple of years, this might result in excess demand for new apartments, and given an income multiplier greater than one, residential investment spending could spur GDP growth in the US.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;">Benefits of the partial solution for the US/China trade tension and the definitive Brexit decision will, however, outweigh the increasing concerns with respect to the outbreak of the novel coronavirus in China. We believe these corrections in real estate prices are only temporary in nature. We therefore currently do not intend to change our projections or our recommendations to purchase real estate in “pockets of opportunity” as pointed out in our quarterly research report <i>MARKET CYCLES</i>.<o:p></o:p></span></div>
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<b><span style="color: #333333; font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="color: #333333; font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;"> <b>is considered to be one of the foremost authorities on real estate taxation and investing and has authored books in these fields published by John Wiley & Sons of New York. He is the Director of the Center for RE Studies, a real estate research organization and President of calstatecompanies. To learn more about the Center, please visit our web site at </b></span><a href="http://www.calstatecompanies.com/"><span style="color: blue; font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;">http://www.calstatecompanies.com</span></a><span style="color: #333333; font-family: "Times New Roman", serif; font-size: 14pt; line-height: 19.9733px;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman", serif; font-size: 14pt;">UTUBE: </span><a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: 1pt none windowtext; color: #167ac6; font-family: "Times New Roman", serif; font-size: 14pt; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><span style="font-family: "Times New Roman", serif; font-size: 14pt;"><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-27466729968158318882020-02-05T10:32:00.001-08:002020-02-05T10:32:51.110-08:00<div class="MsoNormal">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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<span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><!--[if gte vml 1]><v:rect id="_x0000_s1026"
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<span style="font-size: 36.0pt;">Real Estate Markets In <o:p></o:p></span></div>
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<span style="font-size: 36.0pt;">This New Decade<o:p></o:p></span></div>
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<span style="color: #222222; font-size: 14.0pt;"> We at the
Calstatecompanies’ Center for Real Estate Studies (CRES) are encouraged
by most of the developments at the start of the new decade for the
prospect of the real estate markets.<o:p></o:p></span></div>
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<br /></div>
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<span style="color: #222222; font-size: 14.0pt;"> The
deal between the <st1:country-region w:st="on">US</st1:country-region>
and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
to resolve their trade disputes leads us to believe that our economy will
regain some strength in 2020, after suffering in 2019. Uncertainty
about future trade arrangements was one of the major drivers for
restrained real estate investment spending and the main reason why our
economy lost so much steam in the past year. <o:p></o:p></span></div>
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<br /></div>
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<span style="color: #222222; font-size: 14.0pt;"> In
addition, the parliamentary elections in the <st1:place w:st="on"><st1:country-region w:st="on">UK</st1:country-region></st1:place> in December 2019 and the
overwhelming vote to leave the European Union (EU) at the end of
January 2020 are also sent clear signals, which have reduced
uncertainty for the real estate investment markets. The <st1:country-region w:st="on"><st1:place w:st="on">UK</st1:place></st1:country-region> left
the EU on 31 January. <o:p></o:p></span></div>
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<span style="color: #222222; font-size: 14.0pt;"> The
uncertainty about a potential escalation of the US-Iran conflict also
started to abate as <st1:country-region w:st="on">Iran</st1:country-region>
decided to avoid direct military with a token retaliation after the assassination
of General Soleimani by a <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> drone.<br />
<br />
A development that may have an
immediate negative impact on our economy is discovery of the
coronavirus in <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
and the spread of this disease to other parts of the world. Real estate equities have posted
losses since the discovery of the disease mid-January, with values down
by around 3%. So far, at the
time of writing, 14,557 people have been infected by the new disease,
around 99% of who are in <st1:place w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place> and only 1% in the
rest of the world, according to data from the World Health Organization
(WHO).</span><span style="font-size: 14.0pt;"><o:p></o:p></span></div>
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<span style="color: #222222; font-size: 14.0pt;"> In
contrast to the SARS disease in 2002/2003, <st1:country-region w:st="on">China</st1:country-region>
has taken strong measures to curtail the outbreak of this coronavirus,
starting by notifying WHO immediately, restricting transportation and
tourism within <st1:place w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>,
and expanding its capacity to treat infected people. In addition, many health research
laboratories are working intensively to find an appropriate vaccine.
Given these measures, there is a good chance of containing this new
infectious disease. With respect to the impact of this outbreak on our
economy, it depends on the length and interruptions of production. <o:p></o:p></span></div>
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<span style="color: #222222; font-size: 14.0pt;"><br />
In CRES’ view, the most important development
for our recovery is the partial resolution of trade tensions between
the <st1:country-region w:st="on">US</st1:country-region> and <st1:place w:st="on"><st1:country-region w:st="on">China</st1:country-region></st1:place>.
This shows that both countries are actively engaged in resolving their
current differences in bilateral trade. Consequently, we are confident
that the <st1:country-region w:st="on">US</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
will continue to negotiate further trade arrangements to iron out the
remaining trade disagreements. This should restore real estate investors’
confidence. These developments will be closely monitored, and the
impact on real estate values will be continuously assessed.<o:p></o:p></span></div>
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<br /></div>
<div class="Normalblack">
<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the
foremost authorities on real estate taxation and investing and has authored books in
these fields published by John Wiley & Sons of New York. He is the
Director of the Center for RE Studies, a real estate research
organization and President of calstatecompanies. To learn more about
the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<div class="MsoNormal" style="line-height: 16.5pt;">
<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 1pt none windowtext; color: #167ac6; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-65591528027787434122020-01-28T10:21:00.003-08:002020-01-28T10:21:38.891-08:00<div class="MsoNormal">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<span style="font-size: 36.0pt;">How to Pick the “Right”<o:p></o:p></span></div>
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<span style="font-size: 36.0pt;"> Property
Manager<o:p></o:p></span></div>
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<b><span style="font-size: 18.0pt;">The following
is what you need to know before you hire someone to manager your
property:<o:p></o:p></span></b></div>
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<b><span style="font-size: 14.0pt;"><br /></span></b></div>
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<b><span style="font-size: 14.0pt;"><br /></span></b></div>
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<b><span style="font-size: 14.0pt;">Be Wary of “Mom-and-Pop” Operations<o:p></o:p></span></b></div>
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I prefer to use a medium-size
property management company, rather than a “mom-and-pop” company. These kinds
of operations usually don’t have the staff to do an adequate job. In addition
to managing smaller units, they are typically involved with real estate
brokering. I’ve actually seen these
operators give prospective tenants the key to a vacant unit, rather than
showing it themselves. This type of marketing effort won’t do if you’re trying
to keep vacancies down.<o:p></o:p></div>
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<b><span style="font-size: 14.0pt;">Be Just as Wary of the “Giants” in the Field<o:p></o:p></span></b></div>
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Larger property management firms are
geared to institutional investors. Midsize apartment buildings somehow get lost
in the shuffle. Individual attention
suffers. The needs of your building might have to wait until those of a much
larger complex are met. Your building might be assigned to a new or relatively
inexperienced property supervisor to provide training.<o:p></o:p></div>
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<b><span style="font-size: 14.0pt;">Procedure Manuals Are Critical<o:p></o:p></span></b></div>
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Ask to see the operations or
procedure manual of the firm. Read it and ask questions. You’ll get a clear
indication of how a property management company manages apartment complexes
from the manual. Be leery of the company that doesn’t have one. In fact, do not
consider using a company unless they have a formal plan on how they manage apartment
buildings.<o:p></o:p></div>
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<b><span style="font-size: 14.0pt;">What to Expect from Your Property Manager<o:p></o:p></span></b></div>
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Under no circumstances should you run
the day-to-day management operations. Your role is to properly monitor the
project in order to establish effective policies and to make management
decisions.<o:p></o:p></div>
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What support should your property
management company provide? Ideally,
they should be able to provide all services in the areas of acquisition,
operation, and disposition of your property.<o:p></o:p></div>
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After you’ve pinpointed possible
property locations, a good property management company should be able to give
statistical, as well as subjective, information concerning socioeconomic,
political, and developmental conditions. A quality firm should be capable of
preparing physical inspection reports, capital improvement requirements, and an
effective operations budget.<o:p></o:p></div>
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During the operations phase, a
competent property management company will issue timely monthly operating
reports that compare actual income and expenses to budgets. They should be able
to give you a detailed explanation of any major variances, and their
representative should meet with you periodically.<o:p></o:p></div>
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During the sale phase of your
property, your management firm should be able to communicate with the potential
buyers on your behalf regarding the building, and to assist in various
inspections. They should have no problem providing these services because it
gives them the opportunity to display their own expertise to the new buyers.<o:p></o:p></div>
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<b><span style="font-size: 14.0pt;">Controlling Property Management Fees<o:p></o:p></span></b></div>
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How much should you pay a property
management firm? Payment should be based on the various tasks you want
performed. In assisting you with the acquisition, you should contract out on an
hourly basis that’s comparable in the area. Under no circumstances agree to an
inspection contingent on signing a management contract. You can readily see
where this could lead. More property managed equates to more in-come, a
flagrant conflict of interest. Work with a reputable company, one that won’t
recommend you buy the building just to get the management contract.<o:p></o:p></div>
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higher percentage than larger ones. Re-member,
management fees are always negotiable. There are no fixed rates. Make sure all
services and related costs are spelled out in writing before you enter into a
management contract.<o:p></o:p></div>
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It is important to note that fees
based on the percentage of rents collected should not include other items such
as total cash collected, projected rents, gross possible rents, security
deposits, and laundry income, for example. Be careful. Know exactly what the
rate is and how it’s applied.<o:p></o:p></div>
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If you want to give additional
incentive to the property management company, offer them a bonus based on the
building’s performance. It could be based on net operating income or the
overall improvement of the complex over a period of time, usually one year.<o:p></o:p></div>
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<b><span style="font-size: 14pt;">ABOUT
THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14pt;"> <b>is
considered to be one of the foremost authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, a real estate research organization. To learn more
about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a></span>EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-21531469492314380182020-01-09T09:04:00.001-08:002020-01-09T09:04:43.147-08:00<div class="MsoNormal">
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<span style="font-size: 9pt; letter-spacing: -0.2pt;">The Cal State Companies:
Center for Real Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9pt; letter-spacing: -0.2pt;"> </span><span style="font-size: 9pt; letter-spacing: -0.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9pt; letter-spacing: -0.15pt;">
Cal State Investment LTD Partnership</span><b><span style="font-size: 9pt; letter-spacing: -0.2pt;"><o:p></o:p></span></b></div>
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id="_x0000_s1026" style='position:absolute;left:0;text-align:left;
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9pt; letter-spacing: -0.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a> </span><span style="font-size: 9pt; letter-spacing: -0.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9pt; letter-spacing: -0.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<b><span style="font-size: 26pt;">Just Released Leading Rental Income Markets 4th
Quarter 2019<o:p></o:p></span></b></div>
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<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> LOS <st1:place w:st="on"><st1:city w:st="on">ANGELES</st1:city>, <st1:state w:st="on">CA</st1:state></st1:place>. The Center for Real Estate Studies (CRES) research report has just released their fourth quarter 2019 issue of “Market Cycles". It gives a forward look at more than 150 income rental markets with “buy, sell or hold” recommendations. This publication gives the real estate investor a two-year head start on where and when to invest in rental income properties.<o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> The current number of markets in the “Sell Phase” is forty, according to Eugene E. Vollucci, Director of CRES. The number of markets in the “Buy Phase” is twenty. Mr. Vollucci states, “This quarter the three top buy recommendations are <st1:city w:st="on">Austin</st1:city>, <st1:state w:st="on">TX</st1:state>, <st1:city w:st="on">Louisville</st1:city>, <st1:state w:st="on">KY</st1:state>, <st1:place w:st="on"><st1:city w:st="on">Minneapolis</st1:city>, <st1:state w:st="on">MN</st1:state></st1:place>. The three top sell recommendations are Honolulu, HI, McAllen, TX and El Paso, TX.” according to Mr. Vollucci.<u><o:p></o:p></u></span></pre>
<pre style="background: white; line-height: 14.65pt; text-align: justify;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt; text-align: justify;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> In this edition of our <i>Market Cycles,</i> we find the fourth quarter 2019 rental vacancy rate outside MSAs (Metropolitan Statistical Areas) was higher than in the suburbs, but not statistically different from the rate in principal cities The rental vacancy rate outside MSAs was lower than in the third quarter 2018, while rates in principal cities and in the suburbs were not statistically different from third quarter 2018 rates. <o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> <o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> Unemployment rates were lower in November than a year earlier in 223 of the 389 metropolitan areas, higher in 137 areas, and unchanged in 29 areas, the U.S. Bureau of Labor Statistics reported today. 153 areas had jobless rates of less than 3.0 percent and 2 areas had rates of at least 10.0 percent. Nonfarm payroll employment increased over the year in 51 metropolitan areas and was essentially unchanged in the remaining 338 areas. The national unemployment rate in November was 3.3 percent, not seasonally adjusted, little changed from a year earlier.<o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> Real estate gains on residential property according to S&P’s over the last 10 years were up 3.4%. A booming economy, but insufficient homebuilding made property owners rich. <o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #58595b; font-family: 'Times New Roman'; font-size: 14pt;"> </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: 'Times New Roman'; font-size: 14pt;">Approximately 328,000 new units are needed in the <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place> each year just to keep up with demand. That figure has only been realized twice since the late 1980s, in 2017 (the peak year for completions) and 2018 and is on track to make it in 2019, according to CoStar. Although some segments of the market may be approaching overbuilt status (luxury, urban core, specific submarkets), supply is still falling far short of demand in many areas across the country. In 2018 and 2019, absorption outstripped demand by an estimated 73,400 units and the current pipeline for 2020 shows fewer units coming on-line than 2019</span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #58595b; font-family: 'Times New Roman'; font-size: 14pt;">.</span><span style="font-family: 'Times New Roman'; font-size: 14pt;"><o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> In a recent<span class="apple-converted-space"> Freddie Mac survey, </span>homeowners and renters fifty-five and older learned that an estimated 6 million homeowners and nearly as many renters prefer to move again and rent at some point. Of those homeowners and renters that expect to move again, over 5 million indicate they are likely to rent by 2020.<o:p></o:p></span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre style="background: white; line-height: 14.65pt;"><span style="font-family: 'Times New Roman'; font-size: 14pt;"> This is just another indication of the growing pressure on already tight rental inventories and the significant challenges to housing affordability in the coming years. While estimates vary, we can expect a shortage of needed affordable rental units that will run into the millions. As such, the affordability gap will spread much wider than it is today.<o:p></o:p></span></pre>
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, a real estate research organization. To learn more
about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14pt;">UTUBE:
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-60475461715740121612019-12-16T09:15:00.001-08:002019-12-16T09:15:20.503-08:00<div class="MsoNormal">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<b><span style="font-size: 22.0pt;">Real Estate Investments-A Year Ahead <o:p></o:p></span></b></div>
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<span style="font-size: 14pt;"> As
we move into the year ahead, there is a general acceptance that we are at a
point where long-term economic growth in the real estate industry will be
slower, but sustainable.<o:p></o:p></span></div>
<div class="swift-in-viewport">
<span style="font-size: 14pt;"> The word is that the<span class="apple-converted-space"> year ahead </span>is ideal for real estate
investments because many investors are searching for safe havens for their
capital. Real estate offers stable returns compared to other investments making
it the “right” choice. However, there are several areas to watch as we approach
the New Year. It is important to remember to diversify your real estate investments
when navigating both certain and uncertain times. The Center for Real Estate
Studies can help you do that with our monthly research reports and quarterly research
report <i>MARKET CYCLES.<o:p></o:p></i></span></div>
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<span style="font-size: 14pt;"> The past year has been filled with
various forms of uncertainty. The one thing that seems certain is that
companies are less likely to make growth plans and <o:p></o:p></span></div>
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<span style="font-size: 14pt;">capital investments
in the face of such uncertainty. With presidential elections in 2020 and banks willing to accommodate, we expect a
softening of economic activity. <o:p></o:p></span></div>
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<span style="font-size: 14pt;"> The driving force remains domestic
demand, especially private consumption, based on our strong labor market, which
is operating close to full employment. The path for economic activity and risks
has become unusually dependent on the ability of our administration to avoid an
outright trade war with <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>.
We believe the bank’s easing of interest rates will be strong enough to avert a
slowdown in economic growth, prolonging the current economic expansion and
supporting earnings growth <o:p></o:p></span></div>
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<span style="font-size: 14pt;"> The
<st1:country-region w:st="on">U.S.</st1:country-region> economy is doing quite
well right now, but it could falter over the next couple of years as the
stimulus fades away, said Paul Ashworth, chief <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> economist for Capital
Economics, and the winner of the Forecaster of the Month award for March.<o:p></o:p></span><br />
<span style="font-size: 14pt;"> “We’ve
been optimistic,” Ashworth said in a telephone interview. He and his colleagues
had long assumed that the united Republican government in <st1:state w:st="on"><st1:place w:st="on">Washington</st1:place></st1:state> would deliver a “sizable fiscal
stimulus” and they were right. The tax cuts and the end of spending restraints
should give the economy<span class="apple-converted-space"> </span><a href="https://www.marketwatch.com/story/cbo-forecasts-the-return-of-trillion-dollar-deficits-2018-04-09"><span style="color: black; text-decoration: none; text-underline: none;">a nice boost this
year and into next.</span></a> Nevertheless, what happens next? “We are
concerned with fiscal stimulus wearing off,” Ashworth said. He expects a
“weaker” 2019 and 2020. Indeed, Capital Economics expects the Federal Reserve
to be cutting rates in 2020.<o:p></o:p></span><br />
<span style="font-size: 14pt;"> <o:p></o:p></span><br />
<span style="font-size: 14pt;"> “The
Fed’s economic projections, which envisage the economy growing above trend all
the way out to 2020, strike us as far too upbeat,” wrote senior <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> economist
Michael Pearce in a recent note to clients. “The fiscal stimulus will provide a
one-off boost to incomes and spending, but unless it expands the supply
capacity of the economy, growth will inevitably fall back.”<o:p></o:p></span><br />
<span style="font-size: 14pt;"> The
economists expect only “a modest downturn that’s quickly reversed” in 2020, but
of course the expansion has to end sometime. By then, it will be the longest
expansion in <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>
history. “We stress to clients that they should think of the next downturn,”
Ashworth said. “We expect it to be short-lived, with less permanent scarring”
than from the Great Recession of 2008-09.<o:p></o:p></span><br />
<span style="font-size: 14pt;"> We
believe that the best way to hedge against the uncertainty in the year ahead is
to invest in midsize apartments in “Pockets of Opportunity’ as reported in our
quarterly research report<i> Market Cycles</i>.
<o:p></o:p></span><br />
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<span style="font-size: 14pt;">ABOUT THE
AUTHOR: Eugene E. Vollucci, is
considered to be one of the foremost authorities on real estate taxation
and investing and has authored books in
these fields published by John Wiley & Sons of New York. He is the Director
of the Center for RE Studies, an educational and research organization. To
learn more about the Center, please visit our web site at <a href="http://www.calstatecompanies.com/"><span style="color: black; text-decoration: none; text-underline: none;">http://www.calstatecompanies.com</span></a><o:p></o:p></span></div>
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<span style="font-size: 14pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="color: black; text-decoration: none; text-underline: none;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-74017708834545526512019-11-15T13:57:00.000-08:002019-11-15T13:57:22.481-08:00<div class="MsoNormal">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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<span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><!--[if gte vml 1]><v:rect id="_x0000_s1026"
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<span style="font-size: 22.0pt;">Real Estate Investment Outlook November 2019<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> We at the Center For Real Estate Studies continue to hold a
middle-of-the-road position for the real estate investment markets. There are
signs of softening in our economy and monetary policy. The Federal Chairman,
Jerome Powell,</span><span style="background: white; color: #525252; font-family: Helvetica; font-size: 8.0pt; mso-bidi-font-family: "Times New Roman";"> <span class="apple-converted-space"> </span></span><b><span style="font-size: 14.0pt;"> </span></b><span style="font-size: 14.0pt;">is
likely to evaluate economic data before additional rate cuts. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> With strong private consumption and the strength of the
service sector, which accounts for more than three-fourths of our gross domestic
product (GDP), he may be forced to cut rates even further if a resolution of
the trade dispute between the <st1:country-region w:st="on">US</st1:country-region>
and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
is again delayed. The Feds might return to buying short-term Treasury bills, given
the looming budget deficit, which is expected to rise to -4% of GDP in 2020<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> A recession is still highly unlikely, given strong domestic
economic factors such as private consumption and low and declining
unemployment. So far, the sluggishness in manufacturing has not spread into the
service industry, and we believe that the momentum of job creation could be
maintained in the service-producing economy. Although real estate valuations appear
somewhat stretched in some markets, the prospects of a solid economic cycle may
justify our current thinking. In addition, the real estate markets proved to be
resilient against rising volatility during the mayhem of 2011 and 2015. <o:p></o:p></span></div>
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<span style="font-size: 14pt;"> Because of the sluggishness of our manufacturing,
the United States Dollar (USD) is appreciating against European Currency. In <st1:place w:st="on">Europe</st1:place>,
for instance, a lack of real alternatives for investors is proving to be the
main driver of USD strength. Elsewhere, the high level of uncertainty over the
US-China trade talks is exerting pressure on the Chinese Yuan, thus
strengthening the USD. The net upshot is less European and Chinese real estate
investment being made in our country.<o:p></o:p></span></div>
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<span style="font-size: 14pt;">One may argue that rate
cuts may weaken the USD; however, cuts have not been the straw that broke the
camel's back. They have lowered interest rates twice, and rate expectations
have swung around. For now, there seem to be other factors driving the USD. Coordinated
rate cuts created a friendly environment with depressed volatility, sustaining
demand for real estate investments. As long as rate cuts are followed by
other banks, this mechanism will stay in
place. As a result, Fed policy may influence the USD for a short time, but
other factors may be necessary to undermine USD strength in the long term. In
debt outstanding of more than 100% of US GDP, the funding requirements of the mounting
fiscal deficit and the negative international investment of around 10 trillion
USD are three factors that may be a burden on the USD over a longer period.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> In preparing our quarterly report, MARKET CYCLES, we take
into account the input from Outlook, our monthly research source. At this
point, we still believe that with midsize apartments you still get the best
investment dollar for your buck. Midsize apartments generally outperform
equities because of its higher yields, greater price stability, and downside
protection even in a recession. When
stock markets are down (which we project will happen in 2020), they hold value
and produce a positive return. They are less prone to booms and busts. Midsize
apartments are now stronger than they have been in many years. <o:p></o:p></span></div>
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, an educational and research organization. To learn
more about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-61050434348443430402019-10-18T10:11:00.001-07:002019-10-18T10:11:06.530-07:00<div class="MsoNormal">
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<span style="font-size: 14.0pt;">If a natural disaster damages your property, you have
undergone a casualty loss, which can be deductible as an itemized deduction on
your federal income tax return.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">As a rule of thumb, to be considered a casualty loss,
it must be caused by an "Act of God". Simple wear and tear over time
does not count. One type of casualty loss is damage to property caused by
earthquakes and fires. You may take a deduction for casualty losses only to the
extent that the loss is not covered by insurance.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">You can deduct only the amount of the loss that
exceeds 10% of your adjusted gross income (AGI) for the year. A one-time $100
deduction applies for the year.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">Example: Your home is damaged by an earthquake. Your
home has a $50,000 reduction in fair market value, but your adjusted cost basis
was $20,000. Therefore, now the lower limit is $20,000. Your earthquake
insurance covers $10,000 of the damage. The unpaid part of your claim is
$10,000. Subtracting the $100, you end up with $9,900. If your AGI is $45,000,
10% is $4,500. You can deduct the portion of your loss above the $4,500, so you
subtract that number from $9,900. Your total deduction is $5,400.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">Where your disaster loss exceeds your current income,
you may carry back the excess loss three years to get refunds of prior years'
federal tax payments. If you still have some unused loss, you may carry it
forward for up to 15 years.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">What happens if you do not repair or replace the
damage? You are entitled to the deduction when the loss occurs. You do not have
to fix the damage to claim tax deductions.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">Casualty losses are always deductible in the year the
casualty occurred. However, if you have a casualty loss from a federally
declared disaster, you have another option: You can treat the loss as having
occurred in the prior year, and deduct it on your return or amended return for
that tax year. This way, you can get a quick tax refund.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">For your records, you will need to have the following:<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> ► Documents showing that you owned each asset
you claimed was damaged or
destroyed—for example, a deed or receipt.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> ► Contracts or purchase receipts showing the
original cost of the item, plus any
improvements you made to it.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> ► An appraiser can determine the value before
and after the earthquake and subtract
the two; the difference is your disaster loss.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">This road to recovery also applies to storm, fire and
theft damages. It will lead to a less painful recovery by allowing the
government to help pay for the costs of repair and/or replacement.<o:p></o:p></span></div>
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, a real estate research organization. To learn more
about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtube/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-64529144907397988142019-10-16T11:02:00.001-07:002019-10-16T11:02:35.860-07:00<div class="Default">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<b><span style="font-size: 22pt;">Real Estate Investment
Outlook<o:p></o:p></span></b></div>
<div align="center" class="Default" style="text-align: center;">
<b><span style="color: windowtext; font-size: 22pt;">October
2019<o:p></o:p></span></b></div>
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<span style="color: windowtext; font-size: 14pt;"> <o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> LOS <st1:place w:st="on"><st1:city w:st="on">ANGELES</st1:city>,
<st1:state w:st="on">CA</st1:state></st1:place>. The reduction of the interest
rate was justified because the growth of credit demand has slowed since the
beginning of 2018, and is now expanding at a rate of around 4.5%. Compared with
the average growth of credit demand during the pre-crisis recovery of
approximately 8.5%, this weak demand is a favorable development for real estate markets.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> Change in the monetary policy stance in 2019 has been
dramatic. The Feds have moved from a
wait-and-see attitude in early 2019 back to a let-up mode. The Fed cut rates by
50 basis points in 2019. Against the backdrop of threats and a slowing due to
trade tensions, this seems to make sense.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> Our
economic expansion is established and is now officially the longest on record.
While business cycles do not last forever, we should recognize that the longer
an expansion lasts, the more likely it is to stagger. Another sign suggesting
that our economy is in the later stages of the business cycle is the extremely
low unemployment rate. The yield curve shows signs of inverting from time to
time, such inversions are not a guarantee that a recession is coming. They
tend, however, to coincide with an increased risk of an economic downturn six
months to two years into the future. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> We feel
a recession is unlikely thanks to strong household income growth. Consumer
spending is likely to remain solid, but trade uncertainty will be an ongoing
drag on real estate investments. Tariffs themselves are harmful to grow. The
larger impact occurs because of the rising uncertainty, which brings caution.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> Tariffs make investors unsure to what may be in the future.
Many investors are waiting for greater clarity. We have already seen a
significant decline in activity, and more weakness in sentiment indicators is
likely in the coming months. <o:p></o:p></span></div>
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<span style="color: windowtext; font-size: 14pt;"> Despite the
slowdown in investment, we feel that consumer
spending growth is likely to remain solid, supported by continued improvement
in the labor market. Job gains appear to be moderating, but this is being
partly offset by a faster pace of wage growth. Overall, labor income has slowed
modestly, but growth is still near its post-crisis trend. The unemployment rate
has declined to multi-decade lows. <o:p></o:p></span></div>
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<span style="color: windowtext; font-size: 14pt;"> ApartmentData.com
reports that currently, the residential real estate marketplace is slowing
down. This specifically means that single-family homes are becoming scarce.
This is likely to drive up prices in areas that are experiencing limited supply
and high demand. Core Logic recently published a survey indicating that home
prices are expected to increase by more than five percent by May 2020. Scarcity
of affordable homes leads directly to increased demand for rental and lease
properties<o:p></o:p></span></div>
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, an educational and research organization. To learn
more about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-33214813713890102252019-10-05T13:01:00.002-07:002019-10-05T13:01:17.053-07:00<div class="MsoNormal">
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<span style="font-size: 9pt; letter-spacing: -0.2pt;">The Cal State Companies:
Center for Real Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9pt; letter-spacing: -0.2pt;"> </span><span style="font-size: 9pt; letter-spacing: -0.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9pt; letter-spacing: -0.15pt;">
Cal State Investment LTD Partnership</span><b><span style="font-size: 9pt; letter-spacing: -0.2pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9pt; letter-spacing: -0.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a> </span><span style="font-size: 9pt; letter-spacing: -0.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9pt; letter-spacing: -0.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<div align="center" class="MsoNormal" style="mso-hyphenate: none; text-align: center;">
<b><span style="font-size: 26pt;">Just Released 3rd Quarter 2019<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="mso-outline-level: 1; text-align: center;">
<b><span style="font-size: 26pt;">Leading Rental Income Markets<o:p></o:p></span></b></div>
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<span style="font-size: 14pt;"> LOS <st1:place w:st="on"><st1:city w:st="on">ANGELES</st1:city>, <st1:state w:st="on">CA</st1:state></st1:place>.
The Center for Real Estate Studies (CRES) research report has just released
their third quarter 2019 issue of “Market Cycles". It gives a forward look at more than 150
income rental markets with “buy, sell or hold” recommendations. This
publication gives the real estate investor a two-year head start on where and
when to invest in rental income properties.<o:p></o:p></span></div>
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<span style="font-size: 14pt;"> The current number of markets in the
“Sell Phase” is forty-eight, according
to Eugene E. Vollucci, Director of CRES.
The number of markets in the “Buy Phase” is eighteen. Mr. Vollucci
states, “This quarter the three top buy recommendations are <st1:city w:st="on">Milwaukee</st1:city>,
<st1:state w:st="on">WI</st1:state>, <st1:city w:st="on">West Palm Beach</st1:city>,
<st1:state w:st="on">FL</st1:state> and <st1:place w:st="on"><st1:city w:st="on">Youngstown</st1:city>,
<st1:state w:st="on">PA.</st1:state></st1:place> The three top sell
recommendations are <st1:city w:st="on">New York</st1:city>, <st1:state w:st="on">NY</st1:state>,
<st1:city w:st="on">Eugene</st1:city>, <st1:state w:st="on">OR</st1:state> and <st1:city w:st="on"><st1:place w:st="on">Raleigh</st1:place></st1:city>, NC.” according
to Mr. Vollucci.<o:p></o:p></span></div>
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<span style="font-size: 14pt;"> In this edition of our <i>Market Cycles,</i> we find the national
vacancy rates in the second quarter 2019 were 6.8 percent for rental housing
and 1.3 percent for homeowner housing. The rental vacancy rate of 6.8 percent
was virtually unchanged from the rate in the second quarter 2018 and not
statistically different from the rate in the first quarter 2019 . The homeowner
vacancy rate of 1.3 percent was 0.2 percentage points lower than the rate in
the second quarter 2018, but not statistically different from the rate in the
first quarter 2019.<o:p></o:p></span></div>
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<span style="font-size: 14pt;"> Approximately 87.8 percent of the
housing units in the <st1:place w:st="on"><st1:country-region w:st="on">United
States</st1:country-region></st1:place> in the second quarter 2019 were
occupied and 12.2 percent were vacant. Owner-occupied housing units made up
56.3 percent of total housing units, while renter-occupied units made up 31.5
percent of the inventory in the second quarter 2019. <o:p></o:p></span></div>
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<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> Unemployment rates were lower in August in 5 states, higher in 3 states, and stable in 42 states and the <st1:place w:st="on"><st1:state w:st="on">District of Columbia</st1:state></st1:place>, the U.S. Bureau of Labor Statistics reported today. Five states had jobless rate decreases from a year earlier, 2 states had increases, and 43 states and the District had little or no change. The national unemployment rate, 3.7 percent, was unchanged over the month and little changed from August 2018.<o:p></o:p></span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> Nonfarm payroll employment increased in 5 states in August 2019, decreased in 1 state, and was essentially unchanged in 44 states and the <st1:place w:st="on"><st1:state w:st="on">District of Columbia</st1:state></st1:place>. Over the year, 26 states added non-farm payroll jobs and 24 states and the District were essentially unchanged. Nonfarm payroll employment increased in five states in August 2019. The largest job gains occurred in <st1:state w:st="on">California</st1:state> (+34,500), <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> (+22,500), and Georgia (+20,800). The largest percentage gains occurred in <st1:state w:st="on">Kansas</st1:state> (+0.6 percent), <st1:country-region w:st="on">Georgia</st1:country-region> (+0.5 percent), and <st1:state w:st="on"><st1:place w:st="on">Arizona</st1:place></st1:state> (+0.4 percent). Employment decreased in August in <st1:state w:st="on"><st1:place w:st="on">Oklahoma</st1:place></st1:state> (-0.5 percent). <o:p></o:p></span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> Twenty-six states had over-the-year increases in nonfarm payroll employment in August. The largest job gains occurred in <st1:state w:st="on">California</st1:state> (+314,200), <st1:state w:st="on">Texas</st1:state> (+303,500), and <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> (+221,200). The largest<o:p></o:p></span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;">percentage gains occurred in <st1:state w:st="on">Nevada</st1:state> (+3.0 percent), <st1:place w:st="on"><st1:state w:st="on">Utah</st1:state></st1:place> (+2.8 percent), and Washington (+2.6 percent).<o:p></o:p></span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre><span style="font-family: 'Times New Roman'; font-size: 14pt;"> </span></pre>
<pre><span style="font-family: "Times New Roman"; font-size: 14.0pt;"> National vacancy rates in the second quarter 2019 were 6.8 percent for rental housing and 1.3 percent for homeowner housing. The rental vacancy rate of 6.8 percent was virtually unchanged from the rate in the second quarter 2018 and not statistically different from the rate in the first quarter 2019 (7.0 percent). The homeowner vacancy rate of 1.3 percent was 0.2 percentage points lower than the rate in the second quarter 2018, but not statistically different from the rate in the first quarter 2019. The homeownership rate of 64.1 percent was not statistically different from the rate in the second quarter 2018 nor from the rate in the first quarter 2019.<o:p></o:p></span></pre>
<pre><span style="font-family: "Times New Roman"; font-size: 14.0pt;"> </span></pre>
<span style="color: #333333; font-size: 14.0pt;"> The enduring strength of the apartment market was the main
takeaway of the National Multifamily Housing Council’s<span class="apple-converted-space"> </span></span><span style="font-size: 14.0pt;"><a href="https://www.nmhc.org/research-insight/quarterly-survey/nmhc-quarterly-survey-of-apartment-conditions-july-2019/"><span style="color: windowtext; text-decoration: none; text-underline: none;">Quarterly
Survey of Apartment Market Conditions for July 2019</span></a><u>, </u><span style="color: #333333;">as the Market Tightness (60), Equity Financing (56), and
Debt Financing (80) indexes all came in above the breakeven level (50). The
Sales Volume Index (48) indicated a continued softness in property sales,
albeit with considerable disagreement among respondents.<o:p></o:p></span></span><br />
<span style="color: #333333; font-size: 14.0pt;"> "These latest figures illustrate that, in spite of
construction levels hovering near recent highs, there remains significant
pent-up demand for apartments," noted NMHC Chief Economist Mark Obrinsky.
"Nearly a third (32 percent) of respondents reported stronger rents and
occupancy levels, while just 11 percent indicated looser market
conditions."<span class="apple-converted-space"> </span><br />
<br />
While the industry outlook is
positive, political and regulatory threats like rent control threaten to upend
regional markets. Among respondents to the NMHC Quarterly Survey, sixty-two
percent operate in jurisdictions that have either recently imposed rent control
or are seriously considering doing so. Of this group, a fifth (20 percent) has
already cut back on investment or development in these markets, while an
additional 60 percent is considering making changes in the future.</span> <span style="color: #333333; font-size: 14.0pt;"><o:p></o:p></span><br />
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, a real estate research organization. To learn more
about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14pt;">UTUBE:
<a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-72676777479636466542019-09-14T10:46:00.001-07:002019-09-14T10:46:31.798-07:00<div class="Default">
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<span style="font-size: 9.0pt; letter-spacing: -.2pt;">The
Cal State Companies: Center for Real
Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"> </span><span style="font-size: 9.0pt; letter-spacing: -.15pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 9.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></b></div>
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -2;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><span style="font-size: 9.0pt; letter-spacing: -.1pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a>
</span><span style="font-size: 9.0pt; letter-spacing: -.15pt;"> </span><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span><span style="font-size: 9.0pt; letter-spacing: -.1pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></div>
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<b><span style="font-size: 22.0pt;">Real Estate Investment Outlook<o:p></o:p></span></b></div>
<div align="center" class="Default" style="text-align: center;">
<b><span style="font-size: 22.0pt;">September 2019</span></b><span style="font-size: 14pt;"><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> <b><o:p></o:p></b></span></div>
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<span style="font-size: 14pt;"> LOS ANGELES, CA. Economic growth in
the second quarter was slightly better than expected. The economy expanded at a
pace of 2.1%, while the growth rate for the first quarter was downgraded from 3.2%
to 2.7%, showing that our economy has been losing steam since mid-2018. The fact that the economy has held up better
for a while is due to the fiscal stimulus and tax reduction at the beginning of
2018. This effect is now fading for real estate<o:p></o:p></span></div>
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<div class="Default">
<span style="font-size: 14pt;"> If employment remains stable with
future job creation, household consumption will continue to support economic
growth, while the deterioration in business will damage the upturn of real
estate. Another force of growth incentive in 2019 and the following two years
will be an increase in government spending, as Congress and the president have
announced a plan to raise spending caps for fiscal years 2020 and 2021. Trade
will continue to make a negative contribution to growth despite the
protectionism of the administration. Against the backdrop of high employment
and stable domestic demand, the probability that our economy will fall into a
recession remains moderate for now.<o:p></o:p></span></div>
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<div class="Default">
<span style="font-size: 14pt;"> Wage pressure is rising only slowly. Thus,
inflation rates are well below the target rate of 2%, at around 1.6%. Banks can
therefore adjust their policies to reflect the blurring outlook for the
economy. The banks have already reacted to the unexpectedly low inflation and
the risks inherent in Trump’s trade policy. The Fed already stopped cutting
interest rates. Therefore, they have taken a wait-and-see stance, given the trade
tensions between the <st1:country-region w:st="on">US</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>.<o:p></o:p></span></div>
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<div class="Default">
<span style="font-size: 14pt;"> We now expect that the Fed will adjust
its stance, given the trade tensions between the <st1:country-region w:st="on">US</st1:country-region>
and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>,
to alleviate the negative impact of declining trade growth on the economy.
Given the rise of our corporate advantage by approximately 48%, according to
the US Flow of Fund statistics, since the end of the Great Recession, lower interest
rates may help to better mitigate lower revenues in case of slowing demand, and
may help to stabilize employment growth, disposable income and the real estate industry.<o:p></o:p></span></div>
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<br /></div>
<div class="Default">
<span style="font-size: 14pt;"> The <st1:place w:st="on"><st1:country-region w:st="on">US</st1:country-region></st1:place> current account deficit has
decreased relative to the highs of the 2002 – 2007 periods, but remains by far
the largest in the world at 2.4%.
Although the current account deficit implies that we are funds importers,
this can sometimes be misleading with respect to gross flows. US investors are
one of the largest portfolio capital exporters in the world. For example, in
2012 – 2014 they were buying more foreign stocks and bonds per year than
Eurozone and Japanese investors combined. In Q1 2019, overall G3 demand for
foreign portfolio assets fell to the lowest levels since the Great Recession in
2008<o:p></o:p></span></div>
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<span style="font-size: 14.0pt;"> In
spite all of this tension, however, it is not inconceivable that deals could be
done and real estate investors could relax once more. However, the uncertainty
persists for now and the longer these concerns affect real estate investments,
the longer plans could be held back. Nevertheless, many parts of our economy
are holding up well, in particular the service sector on the supply side. On
the demand side, consumer spending should save the current economic expansion
given the level of employment and steady wage growth.<o:p></o:p></span></div>
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and investing and has authored books in these
fields published by John Wiley & Sons of New York. He is the Director of
the Center for RE Studies, an educational and research organization. To learn
more about the Center, please visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-45979279083852843392019-09-12T10:23:00.001-07:002019-09-12T10:23:28.820-07:00<div class="MsoCaption" style="margin-left: .5in; mso-list: l1 level1 lfo2; mso-outline-level: 1; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 72pt;"><img alt="*" height="93" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image002.jpg" width="93" /><span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-size: 72pt;">News<o:p></o:p></span></div>
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<span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;">The Cal State Companies:
Center for Real Estate Studies </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: Arial; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: Arial; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span><span style="font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;">Cal
State Properties </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: Arial; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: Arial; mso-symbol-font-family: Symbol;">¨</span></b><span style="font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span><b><span style="font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"><o:p></o:p></span></b></div>
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<b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: Arial; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: Arial; mso-symbol-font-family: Symbol;">¨</span></b><!--[if gte vml 1]><v:rect
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</v:rect><![endif]--><!--[if !vml]--><span style="height: 1px; left: 0px; margin-left: 0px; margin-top: 0px; mso-ignore: vglayout; position: absolute; width: 720px; z-index: -1;"><img height="1" src="file:///C:/Users/gene/AppData/Local/Temp/msohtml1/01/clip_image003.gif" v:shapes="_x0000_s1026" width="720" /></span><!--[endif]--><b><span style="font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;">E-Mail <a href="mailto:CalStatecompanie@aol.com">CalStatecompanie@aol.com</a> </span></b><span style="font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"> </span><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: Arial; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: Arial; mso-symbol-font-family: Symbol;">¨</span></b><b><span style="font-size: 9.0pt; letter-spacing: -.1pt; mso-bidi-font-size: 12.0pt;"> Webpage<span style="color: blue;"> <u>http://www.calstatecompanies.com</u></span><o:p></o:p></span></b></div>
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<h1 align="center" style="text-align: center;">
<span style="background: #FFFFFD; mso-font-width: 119%;">Making Money With<o:p></o:p></span></h1>
<h1 align="center" style="text-align: center;">
<span style="background: #FFFFFC; color: #191f22;"> Residential Income
Properties</span><span style="background: #FFFFFD; mso-font-width: 119%;"><o:p></o:p></span></h1>
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LOS
ANGELES, CA. <span style="background: rgb(255, 255, 253); color: #1a1e1f; font-size: 14pt;">You have heard time and time again “If I only
had purchased that rental property, I would be worth millions today”. </span>Years
ago, I discovered that real estate was the best investment to control risk and
create wealth. The Real Estate Digest reports that seven out of ten
millionaires made their money in real estate, and Forbes magazine states that
there is a three times greater chance of becoming wealthy through real estate
than with any other type of investment.</div>
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<span style="font-size: 14.0pt;">Using Real Estate Investing
to Control Risk<o:p></o:p></span></div>
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<br /></div>
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Real estate
allows you to control your risk because you can actively participate in the
decision-making process. Passive investments such as stocks don’t give you this
opportunity. Movements in real estate values are less erratic than in the stock
market. Most people don’t understand the economic forces influencing the
market. Since real estate is less volatile, it’s easier to control and to
understand. Real estate is tangible. You
can touch it, you’ve been exposed to it all your life, and you can identify
with it. As a result of this familiarity, you are better able to understand it. </div>
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<span style="font-size: 14.0pt;">Effectively Reducing Your
Taxes<o:p></o:p></span></div>
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<br /></div>
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Real estate
ownership continues to be the most popular form of investment because of its
potential for substantial tax savings. Since you are able to actively
participate in the management of real estate, the Internal Revenue Service
(IRS) currently allows qualifying individuals to write off up to $25,000 per
year against salary and other income. No other investment gives you this
capability. In addition, you can defer paying income taxes on profits
indefinitely by using tax-deferred exchanges.
</div>
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<span style="font-size: 14.0pt;">Leveraging That Works <o:p></o:p></span></div>
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Real estate is the only major investment that gives you the
ability to acquire ownership with very little money down. This degree of
leveraging allows you to amplify profits by using other people’s money. The more
assets you are able to control, the more opportunities you have to succeed. The degree of leverage is calculated by
dividing the total purchase price of the property by the amount of funds used
to purchase it. Thus, if a down payment of $10,000 plus a $90,000 loan is used
to purchase a property, a 10 to 1 leverage ratio has been achieved. The greater the leverage, the more equity
will increase with the change in value of the property. </div>
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<span style="font-size: 14.0pt;">Residential Income Properties<o:p></o:p></span></div>
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In the past
20 years, residential income properties have delivered the highest average
total investment returns of all real estate types. With a built-in hedge
against inflation, it’s no wonder that residential real estate has
out-performed all other types of real estate investments with relatively low
risk. Based on supply and demand over the next 10 years, residential income
will out pace all other types of real estate investment. Strong demographic and
financial indicators along with changing lifestyles should continue to
positively influence residential income investments. </div>
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<span style="font-size: 14.0pt;">Residential Real Estate
Investing: These Advantages <o:p></o:p></span></div>
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<!--[if !supportLists]-->1.<span style="font-size: 7pt; font-stretch: normal;">
</span><!--[endif]-->They are less dependent on business cycles for
occupancy than any other type of real estate investments. It
doesn’t matter if interest rates and home prices are high or low, residential
real estate investments are generally more affordable. </div>
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<!--[if !supportLists]-->2.<span style="font-size: 7pt; font-stretch: normal;">
</span><!--[endif]--> They have
shorter leases; thereby offering greater protection from inflation than
the long-term leases associated with commercial properties. Rents can be
negotiated more frequently.</div>
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<!--[if !supportLists]-->3.<span style="font-size: 7pt; font-stretch: normal;">
</span><!--[endif]-->The pool of tenants is much greater for them
than other types of properties. This ensures a more
consistent occupancy than industrial or commercial properties, which usually
have only a few tenants to choose from.</div>
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<!--[if !supportLists]-->4.<span style="font-size: 7pt; font-stretch: normal;">
</span><!--[endif]--><span style="background: #FFFFFD;">Cash Flow:
Purchased on the “correct” terms </span><span style="background: rgb(255, 255, 253); color: #1a1e1f; font-size: 14pt;">income
properties </span><span style="background: #FFFFFD;">can generate cash flow to
supplement other income. <o:p></o:p></span></div>
<div class="Style" style="background: #FFFFFD; line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .2pt; margin-right: .45pt; margin-top: 5.5pt;">
<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .75in; mso-list: l0 level1 lfo1; tab-stops: list .75in; text-indent: -.25in;">
<!--[if !supportLists]-->5.<span style="font-size: 7pt; font-stretch: normal;">
</span><!--[endif]--><span style="background: rgb(255, 255, 253); color: #1a1e1f; font-size: 14pt;">Inflation Hedge: As hedge inflation,
residential income properties continue to be one of the best hedges against
inflation.</span><span style="background: #FFFFFD;"><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">Real Estate Investments as a
Shock Absorber<o:p></o:p></span></div>
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<br /></div>
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Real estate
generally outperforms equities because of its higher yields, greater price
stability, and downside protection even in a recession. When stock markets are
down, real estate investments hold value and produce a positive return. Real
estate is less prone to booms and busts. Residential income real estate is now
stronger than it has been in many years.
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<b><span style="font-size: 14.0pt;">ABOUT THE AUTHOR: Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt;"> <b>is considered to be one of the foremost
authorities on real estate taxation and real estate investing and has authored
books in these fields published by John Wiley & Sons of New York. He is the
Director of the Center for Real Estate Studies, a real estate research
organization. To learn more about the Center for Real Estate Studies, please
visit our web site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com0tag:blogger.com,1999:blog-8442423010717671715.post-82816405406756725302019-08-17T14:56:00.002-07:002019-08-17T14:56:11.816-07:00<div class="MsoCaption" style="layout-grid-mode: char; margin-left: .25in; mso-hyphenate: none; mso-outline-level: 1; mso-pagination: widow-orphan;">
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<b><span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> The Cal State Companies: Center for Real Estate Studies </span></b><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><b><span style="font-size: 8.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt;"> </span></b><b><span style="font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;">Cal
State Properties </span></b><b><span style="font-family: Symbol; font-size: 9.0pt; letter-spacing: -.1pt; mso-ascii-font-family: "Times New Roman"; mso-bidi-font-size: 12.0pt; mso-char-type: symbol; mso-hansi-font-family: "Times New Roman"; mso-symbol-font-family: Symbol;">¨</span></b><b><span style="font-size: 8.0pt; letter-spacing: -.15pt; mso-bidi-font-size: 12.0pt;"> Cal State Investment LTD Partnership</span></b><b><span style="font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 10.0pt;"><o:p></o:p></span></b></div>
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<b><span style="letter-spacing: -.1pt;">Media Contact:
The Center for RE Studies For:
Immediate Release<o:p></o:p></span></b></div>
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<span class="mntl-sc-block-headingtext"><span style="font-size: 26.0pt; letter-spacing: -.2pt;">Real Estate vs. the Inverted Yield Curve</span></span><span style="font-size: 26.0pt; letter-spacing: -.2pt;"><o:p></o:p></span></h3>
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<span style="font-size: 18.0pt; letter-spacing: -.2pt; mso-bidi-font-size: 12.0pt; mso-bidi-font-weight: bold;"> </span><st1:place w:st="on"><st1:city w:st="on"><span class="MsoHyperlink"><span style="color: windowtext; font-size: 14pt; letter-spacing: -0.2pt;">Los Angeles</span></span></st1:city><span class="MsoHyperlink"><span style="color: windowtext; font-size: 14pt; letter-spacing: -0.2pt;">, <st1:state w:st="on">CA</st1:state></span></span></st1:place><span class="MsoHyperlink"><span style="color: windowtext; font-size: 14pt; letter-spacing: -0.2pt;">. An inverted yield curve is an
interest rate situation in which long-term debt instruments have a lower yield
than <a href="https://www.investopedia.com/terms/s/shorttermdebt.asp"><span style="color: windowtext; text-decoration: none; text-underline: none;">short-term
debt</span></a> instruments of the same credit quality. This type of <a href="https://www.investopedia.com/terms/y/yieldcurve.asp"><span style="color: windowtext; text-decoration: none; text-underline: none;">yield curve</span></a> is
the rarest of the three main curve types and is considered to be a forecaster
of economic <a href="https://www.investopedia.com/terms/r/recession.asp"><span style="color: windowtext; text-decoration: none; text-underline: none;">recession</span></a>.<o:p></o:p></span></span></div>
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<span style="font-size: 14.0pt; letter-spacing: -.2pt; mso-bidi-font-weight: bold;"> A renewed center of attention on the yield curve inversion
this week raised fears of an upcoming recession. On Wednesday, the S&P 500
declined 2.93%.The 10-year US Treasury yield fell below the 2-year yield for
the first time in over a decade – a negative sign since yield curve inversions
have occurred prior to each of the past recessions. In addition, the 30-year
Treasury yield fell to a record low in a flight to safety, suggesting investors
expect low rates to persist for an extended period. The price of gold, up 1%
Wednesday and 18% for the year, is another sign of investor fear. Despite such
indications of concern from the market, we only see a minor chance of a <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> recession in
2020. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt; letter-spacing: -.2pt; mso-bidi-font-weight: bold;"> This may be a warning sign for recessions, but they are shocking
as timing indicators for selling real estate investments. Unlike trade
conflicts, an inverted yield curve by itself has limited economic impact. Instead,
its signal about the health of the economy is what matters, and it is not as
negative as some investors fear. Historically, there has been a long and
variable lag between initial yield curve months for the last five recessions.
Additionally, the length of time the yield curve is inverted, and by how much,
matters. If Fed rate cuts successfully steepen the curve into positive
territory, this brief curve inversion may be a premature recession signal.
Neither does a yield curve inversion indicate it is time to sell real estate
investments. Since 1975, after an inversion in the 2-year/10-year yield curve, real
estate continued to rally.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt; letter-spacing: -.2pt; mso-bidi-font-weight: bold;"> So hold on to your hat and try to enjoy the ride. Remember,
one of the b<span class="apple-converted-space">est lessons you can learn in life
is to remain calm.</span></span><span style="background: #FCFCFC; color: #333333; font-family: Georgia; font-size: 18.0pt;"> </span><span style="background: #FCFCFC; font-size: 14.0pt;">Before you panic over the latest inverted yield curve
story, keep in mind the Fed can lower interest rates any time they feel like it
to restore a rising yield curve, and that even telegraphing that they
might do so in the future can impact the real estate markets. The Fed is very
aware that a prolonged inverted yield curve won’t be interpreted as a healthy
sign. They can drop rates almost instantly whenever the spirit moves them.
However, predicting what they might do or when is a loser’s game. The only
people who really know aren’t talking.</span><span class="apple-converted-space"><span style="font-size: 14.0pt; letter-spacing: -.2pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></span></div>
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<b><span style="font-size: 14.0pt; line-height: 150%;">ABOUT THE AUTHOR:
Eugene E. Vollucci,</span></b><span style="font-size: 14.0pt; line-height: 150%;"> <b>is
considered to be one of the foremost authorities on taxation and real estate investing and has
authored books in these fields published by John Wiley & Sons of New York.
He is the Director of the Center for Real Estate Studies, a real estate
research organization. To learn more about the Center, please visit our web
site at </b><a href="http://www.calstatecompanies.com/">http://www.calstatecompanies.com</a><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">UTUBE: <a href="https://youtu.be/868wrjNPQFM" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: #167ac6; mso-border-alt: none windowtext 0in; padding: 0in;">https://youtu.be/868wrjNPQFM</span></a><o:p></o:p></span></div>
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EUGENE VOLLUCCIhttp://www.blogger.com/profile/06818145810038085602noreply@blogger.com1