When considering an investment in real estate, McGregor Interests, Inc. endeavors to analyze the basic fundamentals of the property, it’s position in the market and our ability to enhance that position, and as a result, the ultimate value of the property. We do not consider the income tax ramifications of ownership nor the cost and affect of borrowed money in determining the initial acquisition price. We do not believe the tax tail should wag the economic dog. Both the treatment of income taxes and mortgage interest rates are short-term at best. While an investment structured around debt may preserve capital, it will not necessarily build wealth. The real estate’s inherent value is its ability to preserve capital while providing a hedge against inflation and its ability to increase in value over time, thus building wealth. If one adds to that the changing income tax ramifications and the changing interest rates, the apparent value of the property can be misleading.

Real estate is, and should always be considered, a long-term investment. People have been investing successfully in real estate for thousands of years, long before there was an income tax nor the ability to borrow against the real estate. Once we have established a purchase price, we then endeavor to maximize the returns through proper use of leverage and by taking advantage of whatever tax treatments there may be available at that time. If those factors change, and they always do, the inherent value of the real estate still remains. This is what we mean by traditional real estate investing.

We have endeavored to apply these principles in all of our investments and as a result have been able to meet, or exceed our projected returns during a period of rather extreme economic fluctuations in the real estate markets. We feel this philosophy and performance has contributed to the large number of our investors who have continued to invest with us over the years.

We are actively looking to acquire shopping centers, multi tenanted industrial buildings and self storage facilities in the Midwest. Investment property submissions from either principles or brokers. Please feel free to forward opportunities to Geoff@McGregorint.com

Comments or inquiries from existing or potential investors are always welcome.