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C O V E R S T O R Y / P H I L B R I T T
Mortgage and real estate-related investment opportunities
abound throughout various securities and properties, as
long as investors take the steps necessary to understand
the underlying market conditions—and the properties
themselves.
But the cost of due diligence continues to rise
in today's economic environment, according to
experts. So whether evaluating mortgage notes,
servicing rights, properties for flips or long-term
investments, multi- or single-family rentals, the
rules are the same. e assets—including those
underlying the securities—their communities,
and other macroeconomic factors need to be
carefully evaluated.
SINGLE-FAMILY HOUSING
New building still lags behind where it was
15 years ago, pushing the value of single-family
properties higher across the country, according
to David Lykken, Founder and President of
Transformational Mortgage Solutions.
"ere's a lack of inventory," he said.
e best values tend to be in those areas with
low taxes and a good business climate—like
Texas, Lykken says. Low taxes by themselves
aren't enough, and the proof is in recent events
in Kansas. After having reduced its taxes to
among the lowest in the country, the state
pushed them back up in early summer.
e difference, according to Lykken, is that
Kansas doesn't have a good base of growing
"You need to determine what your goal is. Is it to
have an income stream and build some equity over
time? Or are you looking to make improvements
and sell the property? You need to buy the right
properties for the right reasons..."
—Aaron Norris, VP, The Norris Group
