Source: CoStar, Inc (The Copyright report contains research licensed to AOA Commercial Brokerage) The multi-family market recovery is “top-down”, i.e., there is a market divergence between the quality of assets. The market has firmed up for class “A” and “B+” larger assets in better markets. The cap rates are decreasing and real prices (cost per unit) have increased. However, class “C” and smaller assets cap rates are still flat to deteriorating, especially in tertiary markets. As anticipated, the demand for Class “B” assets has increased and will continue to do so for the near future. Co-Owned Investments Post-Recession Co-Owned properties include Tenant-in-Common (TIC’s) and Delaware Statutory Trusts (DST’s). While … the multi-family sector has been far more resilient and in far better shape in terms of fundamentals than any other asset type particularly office and retail and even industrial. no sector of the Real Estate industry is recession proof, the Co-Owned properties (un- der SEC regulations) appears to have weathered the storm better than expected. This is due in part to the historically low loan to value ratio (LTV) of 50%-60%, the transparent/ comprehensive due diligence performed by both Sponsors and Lenders prior to purchase, experienced professional management, and the institutional quality of the properties. However, some asset types are fairing better than others - i.e., multi-family and single tenant properties. As mentioned previously, the multi-family sector has been far more resilient and in far better shape in terms of “Discover How to Make 16% Interest with Tax Liens” Wayne Gray “Tax Lien Specialist” W (continued on page 68) You The N Could Wi n 5-Day ew iPad o ra Cruis ef at thi s Sem or Two inar! FREE SEMINAR ayne Gray is the nation’s leading tax lien and tax deed investment expert. Tax lien certificates can pay a return to the investor up to 16% to 35% mandated by the state statute. Wayne will be sharing these closely held secrets with you including: • Secure a steady income of an additional $3,000 to $10,000 per month • Build your own fortune starting with any dollar amount • Earn 16% to 18% interest In celebration of AOA’s 30th Anniversary, you could win “The New iPad” or a “Cruise for Two” at this seminar! TM THE FREE MILLION DOLLAR TRADE SHOW & LANDLORDING CONFERENCE FERENCE Wednesday, Oct. 17th • 11:00 a.m • Seminar Area B • Los Angeles Convention Center • West Hall B Please go to www.AOAUSA.com for a complete list of FREE Seminars at this year’s Big Show AOA News and Buyers Guide • Los Angeles • October 2012 • (323) 872-3348 67