Looking for some tools? Cheap?

Everything must come to an end. Even though they have been in business for over 85 years, it looks like ABC Tool Rental in South City is going out of business. Since they have no need of their current rental inventory, they are selling off everything. They have everything from $50 heaters to high-end floor sanders. Its worth a look. Here is the information on the company:

ABC Rental (Click for map)
3456 S. Grand
Saint Louis, Missouri 63118
(1 Block North of Gravois)

Business: 314-865-2400
Home: 314-353-3034
Mobile: 314-757-2626

Open Seven Days a Week
7:00 a.m. - 6:00 p.m.

Speculators vs. Investors

*NOTE - This article was originally written in October of 2006 for the newsletter.

In the world of real estate investment, speculation is considered a dirty word to many. While wide-scale speculation can have adverse affects on neighborhoods, moderate levels can be beneficial to both the neighborhood and the investor.

When an investor purchases a property for rental or rehab, they are assuming that values will appreciate and that demand for rental or sales inventory will remain strong. These assumptions are, in fact, speculation.

Not only should investors keep on speculating, many of them should do it even more. The one factor many investors glance over when making a purchase, is the location of a property. Sure, they consider the quality of the neighborhood, but few investors really account for all the variables involved in improving values. This failure ignores one of the key methods to making profit in real estate: educated speculation

When values appreciate on their own without making improvements to a property, greater profits will be realized. The trick is to buy properties that have a higher potential for this type of value growth. When trying to locate such a site, investors should consider a variety of variables., such as:

• Size and quality of housing stock
• Current development activity
• Planned development activity
• Availability of development incentives such as tax credits or abatement
• Local businesses nearby
• Proximity to transportation

The more of these positive qualities a location possesses, the better the chances of seeing significant profit increases. The important thing to remember is that the safe profit is in being an investor, not a speculator. Never buy something that is a bad deal solely based on speculative assumptions.

If things don’t go as the speculator assumed, the property will be a major burden. For an investor, there is always a safely net. There may be more to gain by venturing outside this net’s protection, but there is also more to lose.

Commercial district forms in Tower Grove South. Or should I call it “Skinnytown?”

*NOTE - This article was originally written in October of 2006 for the newsletter.

The Tower Grove South neighborhood is an area in transition. Two years ago, a drive down Morganford Road between Arsenal & Chippewa, would take you through a corridor of boarded-up and run-down buildings. That same trip, today, will take you through an area of rehab projects and startup businesses.

These changes have happened, seemingly overnight, due in a large part to the influx of residential development projects in the area. Increasing population and housing values began to draw the attention of developers and business owners to the need for neighborhood business activity.

Enter the Tin Can Tavern & Grille at 3157 Morganford Road. The owners opened the bar’s doors in early 2005, with an adventurous spirit. Their gamble has paid off with better than anticipated business. This success has provided a new energy to the area, leading to a rash of new developments and businesses.

With the Vintage Haberdashery, Grove Furnishings and Stella Blues Bar recently setting up shop, the future looks bright. According to St. Louis mayor, Francis Slay, the area will also see an art gallery, day spa and another new restaurant in the near future.

There has been enough new business activity in recent years, that another positive movement has begun: the search for a nickname. Thus far, my favorite choice is “Skinnytown.” It really stands out to me. Time will tell if that sticks.

For investors, this movement offers a variety of investment opportunities. Whether you are looking for a location for your new business, for rental properties or rehab opportunities, the Tower Grove South neighborhood should be on your radar.

*UPDATE - In addition to the businesses listed above a new grocery store has popped up in the district along with a new restaurant called the Three Monkeys. There are a few other projects under construction, but their end-use has still not been revealed. Check back for updates.

St. Louis area investment clubs

*NOTE - This article was originally written in September of 2006 for the newsletter.

Most real estate investors have their share of problems. Oftentimes, new and experienced investors learn this fact the hard way. The best way to minimize mistakes is to educate yourself. The best way to accomplish this task is to surround yourself with knowledgeable professionals and fellow investors.

Throughout the St. Louis area, more and more investors are flocking to real estate clubs and networking events. Most investors love to share their knowledge, and these places offer an excellent opportunity to take advantage of this free resource. The real estate clubs throughout St. Louis emphasize a variety of investment styles and locations. Here are a few examples of groups that might be worth checking out:

Wealth Improvement Network

St. Louis Real Estate Investors

Street

St. Louis Rehabbers Club

Keep in mind that these are just a few of the many local clubs. Many cities and neighborhoods (see Southwest Garden entry) have their own groups which can also be of major benefit. Even if you cannot attend regularly , its worth giving these groups a try. Who knows, you might even learn a thing or two.

If anyone knows of a good investment group that was not listed in this article please let me know.