Walmart doesn’t always get it right. As a pernickety, selective, and sometimes downright wearisome [tag-tec Walmart ]customer[/tag-tec], I can certainly testify to that.
But Walmart made a super-sized colossal business blunder in 2006. The larger than life retailer tried to go chic- as in Vogue chic. I’m not too humble to say I saw this train wreck coming.
Walmart, your advertisements need to be a little bit more refined. A girl in overalls is not going to impress a modish crowd. Vogue readers want sumptuous sophistication, with some dashes of elegance. That’s why they’re spending over $5.00 per issue. The only kind of polish you’ve got is in the automotive section.
I’m sorry, but somebody needs to tell you before it’s too late. Stick to lawnmowers and potato chips; preferably on sale.
Here’s the point for real estate investors and especially [tag-ice]landlords[/tag-ice]. Know your markets. Stick with what works for your markets. You can’t change them. Stop trying. Go with the flow and where your markets lead you.
Let’s say you’ve just bought two lots in a lower middle class neighborhood. Even if you manage to get the zoning changed, putting up four large [tag-cat]McMansions[/tag-cat] that will dwarf the other tiny homes will not be smart in 2007. People who can afford such monstrosities want more than a house. They want a neighborhood to go with it. As the pricing frenzy subsides they’ll be able to get both.
And as you [tag-cat]rent[/tag-cat] your units, remember one vital fact. Know your [tag-cat]tenants[/tag-cat]. Very few senior citizens will be ecstatic about living in a complex with lots of overactive singles. And parents are still interested in school systems, even though real estate agents secretly wish otherwise.
Another way of putting it is if you get the real feel for your properties that’s intuitive and perceptive then you will have a very low vacancy rate regardless of cycles.
Walmart’s schizophrenic attempt to be chic and cheap was like trying to mix oil and water. Your tenants and future homeowners will not be buying it.