|
IWP!, flagship product is Chicago's premiere real estate Investment
magazine. Entitled Invest With Passion!, it is the tool for investors and professionals in the
Mid-West. The publication seeks to grow it's market share by providing
powerful information designed to build the reader both as an investor and a
person.
Since it's release in January of 2006, the magazine has been well received and
continues to gain momentum and support. The education, information, and
networking opportunities for the real estate investor has been long neglected.
No More!
The time is now and the momentum is building.
It's Happening!
|
|
HAL LONDON INTERVIEW
If you ever wanted to meet a
successful, down to earth, compassionate investor, then Hal London would
be the guy. I came in contact with him while taking the appraisal course
at the Chicago Association of Realtors. In the class, I was impressed
with his level of knowledge and experience, and in person he did not
disappoint. I can honestly say that the time spent during the interview
with Mr. London was definitely a delight. He is truly a special
individual and I feel privileged to have had the opportunity to be in his
presence. He has a proven track record, is a genuinely overall nice guy,
and houses a wealth of experience and knowledge in the real estate arena.
He's definitely someone I feel our readers should know.
Mr. London is the President of Key
Appraisals, an appraisal firm which specializes in residential,
commercial, industrial, agricultural and special purpose valuations of
real estate in the northern two-thirds of Illinois. He has several active
appraisers in his firm and multiple locations throughout the area. He has
served as an expert witness in various court cases, is a founding member
of the National Association of Realtors Appraisal Section, President of
Key Realty, a real estate consultant and land developer/builder. Mr.
London also holds a Bachelor's degree from the University of Illinois and
a Master's degree from Loyola University. I believe it is safe to say
that he is a qualified candidate to share with you here.
Mr. London was introduced to real
estate at a very young age by his father who was a successful,
self-educated builder. In fact, he credits his dad as his mentor, having
a huge impact on his success. He began investing in real estate in the
late 1970s, buying and developing new land. Like his father, he chooses
not to utilize banks to finance his ventures; instead he presents
opportunities to friends and acquaintances. For example, he is currently
working on a new construction project in the hot Bucktown area. He has
successfully secured valuable land with zoning to construct a 3-unit
condominium dwelling. An opportunity is being prepared for interested
investors, offering 7% interest on monies invested and a 10% share of all
profits within an 18-month term. As you can see, this is a rather
aggressive investment offering huge benefits to all parties involved.
During our conversation, I asked
Mr. London how his understanding of valuation has been beneficial to his
investment ventures. He stated, “who better than an appraiser can
determine what something is worth.” In fact, he suggested that all
investors in general should consider taking appraisal classes and/or have
a basic understanding of appraisal methodologies. He added that it is
important for investors to learn the concept of value. Not to mention, as
an appraiser, he's out on the streets directly seeing opportunities first
hand. In his eyes, his profession puts him in the perfect position.
We've all heard the saying, “being in the right place at the right time.”
After all, timing is everything in real estate.
Also while on the subject of
property value, Mr. London commented about the correlation between it and
society’s perception of the current real estate market. He stated,
“something is only worth what someone is willing to pay,” which is one of
the key elements when determining value. Like appraisers, investors must
be able to read and understand not only the effects of economic factors,
but those of psychological factors as well. This is especially true in
today's market where it is almost impossible to calculate risk. We are at
a point where economists are struggling to predict where the overall real
estate market is heading. He proposed the question, “have we reached the
bottom yet?” And answered, “who knows, only time will tell.” He went on to
talk specifically about the wonderful job Mayor Daley has done
revitalizing Chicago through aggressive zoning changes and fast track
programs. He referenced the fact that Chicago has had a steady
appreciation growth in property values over the last 15 years. In 2005-06
the values hit a plateau. Some areas dropped while others remained
stable. He proposed another question. “Will we see the same changes in
the values of real estate as those on the West Coast?” And responded once
again, “I don't know, only time will tell.” He stands strong with the
belief that it is extremely hard to speculate with all the factors that we
are facing in this current market. This makes investing decisions and
options even more difficult to determine. As a matter of fact, he
believes that the best investment at this point and time just may be a
savings account.
However, I was able to pull out of
him what he considered to be the best possible real estate investment in
today's market. He suggested strip centers. He likes the concept that
there are minimum maintenance costs, triple-net leases, and low expenses.
He was sure to add a caution statement about the importance of location,
location, location. He stated, “investors considering strip centers must
be aware that those in high economic base areas are struggling from tax
hikes and those in areas of low economic bases are struggling from the
lessee's inability to pay rents. The strip centers that are holding
stable are those that are completely in the middle (economically) of the
two. They generally have 5-6 units, 1200-1500 square feet per unit, and
plenty of parking.” Yet like any other investment, it is vital that you do
your research and know what you are signing up for. It is also important
to remember that the commercial real estate sector is different than the
residential market. In all thy getting, get understanding.
In addition, Mr. London offered
the following advice to both new and seasoned investors, “Study each
potential venture carefully. When you think you know which route you are
taking, go back over it in a different direction.” He advises to always
have a defined exit strategy. Investors should compile a list of all the
things that could possibly go wrong and define a contingency plan for each
item on the list. If he/she cannot come up with a contingency option,
then the investor may want to consider that the venture is not a good
investment. Lack of planning and preparation is where many new investors
fail. They jump in with limited resources and they lack deep pockets. So
when one thing goes wrong, it is detrimental for them. They are
essentially out of the game before they've even gotten started.
Toward the conclusion of our
conversation I inquired why Mr. London chose real estate. His response
was simply because he enjoys it. He told me that he gets gratification in
what he does. He likes to be in a position to help other people and to
make a difference. He stated that he is a problem solver and in
situations where he sees something wrong, his direct response is to find a
solution. I'm a true believer that everyone has a purpose here on this
earth. And in that purpose is where we find true happiness and it leads
us into our wealthy place. Many people go to their grave never fulfilling
their purpose, and I honestly think that Hal London is definitely not one
of those people. He has found his purpose and is living the life that was
meant for him. I only pray that I, too, will be able to experience the
same in my life someday. Happy investing and remember - Knowledge Without
Action Is Useless.
*******************************************************
For more information on Hal London
of Key Appraisals, visit www.keyappraisals.com |
|
|
