The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-01-17
Real Estate
A new REALTY PLAN
Provides Syndicate for Handling
Property That Might Disturb
the Market Otherwise. +
The Property Is Good and the Plan
Shows Promise Of a
y. s#> Profit.

Two plans are suggested to-day for in
surfing permanency in the encouraging
conditions i surrounding the real es
tate market in. Minneapolis Real estate
has been doing we'll in the city for three
years. Nearly every office in town has
done in. the last twelve months the most
productive. business in its history. But
there. remains one feature wherein the
realty men see a chance to make the
market still stronger. Xxi - -. .
1t Is to prevent glutting the market
with good but unproductiye properties
that some. OF the studious dealers have
been considering plans. With such prop
critics removed in case Of a glut the mar
ket equilibrium would assert itself. The
remedy proposed Is a corner in these
properties which the dealers know are
good and which can be handled so as
not to disturb the market.
Charles L. Sawyer of Moore Brothers &
Sawyer proposes syndicate capitalized
at 100000, or more, which shall buy
through the members of the Minneapolis
ties in the city which are offered. These
in turn shall be handled by the members
of the board. "
F. G. Smith, of Nickels & Smith, secre-
tary of the Minneapolis Real Estate
| Board, PROPOSES the Minneapolis Real
| Estate association, to be composed Of
members of the Minneapolis Real Estate
each up to 1000 in number. This shall be
subscribed by members of the board. The
minimum subscription shall be five shares
and the maximum twenty-five shares Mr..
Smith contemplates then the issue of
bonds up<to 80 per cent of the capital with
interest at per cent. No money shall be
taken out of the treasury for five years
except for actual expenses of manage
ment and for interest on the indebted
ness. Property Of the association shall be
sold when opportunity is offered and the
money Immediately reinvested in vacant
property. The association would be able
to buy 100000 worth. of property, which
in five years time, Mr.. Smith predicts
would appreciate, 100 per cent over it:
value in January, 1908. Mr.. Smiths
prophecy as to the appreciation of 100 pc!
cent is backed by other prominent rea
| estate men of the city.
| Although the plans of Mr.. Sawyer enc
Mr.. Smith differ slightly in detail the re
suit aimed at is the same-the creation o
a market for vacant real estate.
A great amount of unproducti5e Mime
apolis real estate is held by eastern own
ers, who owing to heavy expenses sus
tanned for several years wish to sell. Thi
real estate is thus forced on the marke
and the market has been thus overloaded
with property which will not sell for it
real value because Of excess of the sup
, ply over the demand. Immediately upol
the contamination of the corner, a de
. mand would result and prices would g.
up. Then only as much of the holding
would be released for sale as there wa
. call for.
. The syndicate plan includes the pur
chase also of run down, foreclosed prop
: erty and its physical Improvement Th
correct appearance of the residence sec
ton Of the city would, in this manner b
restored. 1850. 49, -.
Secretary Smith believes that this ,asso
ciataion plan would at once provide
means by which the real estate boar
, could buy building for headquarters an
own it free of Indebtedness in five year
: with an income accruing from rental G
r +. Citizens of Minneapolis do not appre
al ciate the fact that considerable residenc
r property: is being practically given ava
I by owners and they will not tumble
the condition until these bargains hav
J. been removed from the market in som
E such manner as proposed above. Gradu
ally the market" has been cleared up un
T til nothing remains on the bargain coun
. ter but residences which are not moder
. and vacant lots. Small modern house
t cannot be bought anywhere ready made
Such bargains have all been snapped W
2 and the prediction is safe that the sam
b condition will soon prevail as to unprc
u ductive property.