8409 Pflumm Cir.
Lenexa, KS 66215

(913) 541-4041
(913) 541-0803 Fax

Investment

Beckner & Associates, Inc. has grown with its clients.  Many of these have developed the need for investment properties.  Again, we believe that any investment property must be evaluated with the needs of the client in mind.  A property might be the perfect investment vehicle for one client but totally wrong for another.  In evaluating properties we must take into consideration the client’s risk/reward tolerance.  Younger investors often are looking for significant appreciation and upside in their investment.  They may not need significant immediate cash flow from the property. 

On the other hand a client may need income for retirement or to supplement their salary income.  Further, their needs may change over time and they will need to move from one type of investment to another.  Another issue of great importance is the time requirements of the investment versus the time the client has available.  Each client must be treated individually.  One size definitely does not fit all.

Beckner & Associates, Inc. is also committed to educating its clients regarding investment properties.  Investors will need to understand the concepts of capitalization rate, the differences between proforma rent and actual rent income, net operating income, internal rates of return, etc.  When these concepts are understood the investor is in a better position to evaluate an opportunity.

There are three ways in which a property can provide income.  They are cash flow, appreciation, and principal buildup through loan amortization.  Not all investments offer all three.  Further, one of these income forms may be more important than the others.  It is only through the combination of client education and client need evaluation that an opportunity can properly be considered.

Another consideration is the market forces themselves.  The appropriate capitalization rate will vary with market changes particularly changes in interest rates.  Construction costs within the market for new properties can also impact the value of existing properties.  Beckner & Associates, Inc. works to stay abreast of the changes in the market and discuss the impact of these changes on the value of the investor’s portfolio and on the sales price for new properties.  This need encourages an on-going dialogue with our clients.

Copyright Beckner & Associates Inc.