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The year was 2005 and the city of St. Louis was experiencing a resurgence-Especially in the hip loft district on Washington Avenue.
We all know the next part of the story…the housing market crashed, then the market stabilized, then it started to climb. The lofts were a bit behind on this progression. They were the 1st to loose their value and the last to appreciate. Alex and Eugene decided to invest in the loft district during this time betting on the loft prices to raise like the housing market. While waiting for this turnaround, they rented out the units to offset any mortgage payments and hopefully profit a bit every month. Loft values seemed to be gaining both in the rental and sales…FINALLY. Then COVID happened. This had a devastating effect on the loft district. The main attraction for loft living is having everything right there-bars, restaurants, groceries, hair salons, boutiques-just park your car and forget about it. As we saw, business couldn’t sustain in the COVID atmosphere and closed one by one. Needless to say, values stalled. Alex and Eugene grew tired…It had been a decade of waiting for their investments to be 100% profitable. Change was not happening quickly enough to wait for another rise in property values (hopefully) to occur. If they sold now, with the the ups and downs of the last 10 years, they would break even(or stop loosing money during tenant changes). Alex and Eugene followed my team’s plan that we have formulated to showcase their investments to be move in ready within weeks of a tenant move out(A great cleaner, handyman and HVAC contractor are essential for this winning recipe!) The lofts are equally appealing to both buyers who want to start their ownership journey and savvy investors looking to bulk up their rental portfolio As each closing happens, Alex and Eugene can now take a larger breath of relief. No longer is there the looming pressure of keeping good tenants, getting rid of bad tenants, and navigating the roller coaster of property values rising and falling…plus taxes every year are getting simpler and simpler. Alex and Eugene have shifted their investment mindset to vacation mindset(vacation rentals can be an investment too-this is another topic for a different newsletter though!)
Are you or someone you know ready to trade in their real estate portfolio for a simpler EASIER future?
I am here to coordinate all of the ebbs and flows that come with selling and managing your real estate investments.
In love and light, and future lazy beach days ~Dede~
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