Affordable Housing Income By Historic Conversion

Seeing a real estate opportunity instead of a dead project can significantly impact you and your team just as it can for the buyers and tenants your "vision" results in.

There aren't many investors or developers that would have and then carry out their vision for affordable housing which honors the 100 year anniversary of the historic building that residents will be able to call home.

This "vision" is creating work for those architects, lenders, contractors, and brokers making this project happen.

Properties like this often produce historic property tax benefits and added financial opportunities, or happen as a result of them being available to those who know to pursue them.

Keep in mind that all of this started because one person came up with an idea - and knew what to do about it. My team and I can help you to make an idea a reality - no matter who thought it of it first!

 

 

https://detroit.urbanize.city/post/100-apartments-coming-historic-former-detroit-school 

Downtown Pittsburgh Atttraction Creates Real Estate Opportunities

Many real estate professionals and investors see a news story about a big development project, whether in their city of interest or elsewhere, and don't give it another thought. My theory over the years is to give a story about an upcoming or approved development plenty of thought. There may be an opportunity for me, my associates, and, most of all, my valued clients.

 

 

There is a lot to be said for pouncing on an opportunity, and that is exactly where having a research person or team can make a huge impact. 

 

Let's take the (below linked) story about plans for a significant attraction in downtown Pittsburgh being approved and all of the opportunities it provides for commercial real estate. Developers and contractors that were researching and tracking this project are already in prime position to submit proposals. There will be plenty for investors and brokers to take on. 

Those not already tracking can and should get more value from this story. It's not just this pending attraction. Now is the time to (for those that haven't started already) research surrounding and nearby properties. There will be a demand for convenience stores, parking, and specialty retailers going to and from the attraction. Chances are some current property owners in the area are not fully aware of the project and might be willing to listen to a reasonable offer. 

My team and I can help you and your team to discover opportunities appropriate for growing your business or portfolio. We know how and where to look!

 

 

 

https://www.post-gazette.com/business/development/2024/11/12/pittsburgh-planning-commission-esplanade-north-side-ferris-wheel-piatt-companies/stories/202411120091 

Combining Research With Opportunity For Profit

When you have detailed market research, multiple working relationships with vendors and contractors that are willing to listen and work together, and put them together to uncover an amazing opportunity, the result can be an amazing and lucrative real estate opportunity.

 

I just uncovered an opportunity for one entity to be able to build a development of 48 single-family homes (whether to sell or do as build-to-rent), separately provide housing for 250 students (from nearby university), and summer rentals for 100 families (nearby state park and national forest), adjacent to an Interstate highway, and with land for trees or future development for less than $4.2 million!

 

 

 

At the moment, my team and I are the only people that can get all of this done for such a relatively low cost. The student and short-term rental housing is pre-built and can be delivered and ready to be occupied within 100 days. The 48 (possibly more) single-family houses can be 100% financed through a home builder that has at least five successful completed builds within the past three years. This method saves millions of dollars on construction costs. 

The single-family homes could be part of a development or rows of various custom built homes which would be sold at market rates. They could be built gradually to keep pace with expected sales. While the subject property is located in eastern Kentucky, there are possibilities for this level of success for investors and developers, along with land owners around the country. There are not many opportunities for a land owner to generate income from housing within 100 days anywhere else.

These are examples of where having a research person or team can lead. This opportunity in Kentucky can only be executed by one buyer. Perhaps I can help you to find similar possibilities in your area(s) of interest. 

 

 

 

 

 

 

 

 

Selling Real Estate To Maxed Out Buyers

The fact that more than one-third of Americans are at or close to their monthly credit limit does not bode well for homeowners looking to sell 'starter' properties to first-time and lower income buyers. Lenders and brokers face similar challenges trying to increase business even when the potential audience is shrinking.

 

It's easy to think that consumer credit problems are a separate issue from the real estate community, but that is not always the case. If consumers can't get loan approval because of this, can't afford a down payment, and are not able to commit to a long-term living space, their choices become limited for the short-term.

 

Real estate developers and builders, providing housing in lower price ranges may wish to consider build-to-rent or reduced down payment situations. Some brokers don't like to deal with rentals, but doing so is a great way to learn when a lease is up and the financial status of the client. 

The "Cottage Homes On Wheels" Program I work with allows investors and agricultural land owners to place short-term rentals, long-term rentals, and student housing (when within minutes of a campus) for well below market rates. I can help with starting within 100 days. In addition, my real estate research and consulting services can help overcome these consumer obstacles as well!

 

https://abc7chicago.com/post/credit-card-debt-37-americans-have-maxed-come-close-bankrate-report-finds/15548202/

 

 

Check Out All Elements of a Hotel Investment

I'm seeing more "off-market" hotel properties available lately and have been hearing from investors about the need to have their research include looking into the reputation of the location. With customer service quickly becoming extinct in all industries, hotels have fallen victim to frustrated guests and bad reviews more than many other industries.

 

Consumers spending in three figures per night for accommodations continue to expect better treatment than going to the front desk and being told to "Call housekeeping". These are aggravations which contribute to fewer and lower tips and bad recommendations, as address in the link below.

 

Performing market research for investors, developers, and brokers over the years has shown me that determining the extent of customer problems should be a factor in an investor's decision to say yay or nay on a purchase. There are times when a name change and an "Under New Management" sign only makes people say, "Oh, that place" and not want to bother.

 

Of course, the financial numbers need to work, whether an off-market or listed property. The point is that in the hospitality business there is a lot to be said for the mood of the customer base. Guests want to be greeted, be able to contact a real person with their specific needs, and not be nickel and dimed upon checkout.

 

Meanwhile, investors (buyers) want to come in to an environment with happy past customers instead of having to start all over again, which lessens the value of their investment. 

https://axonify.com/blog/hospitality-survey/

An Opportunity To Motivate A Seller

From where I sit, the situation (article linked below) in which the Supreme Court will not hear an action against the current Rent Control situation could be an opportunity for a savvy investor. 

How is that? Real estate investors and professionals should ALWAYS be researching and exploring as a way to uncover new, different, and/or additional opportunities. Those that don't have time should have a research person or team doing this for them, since a few dollars today could be thousands or millions of dollars down the road. 

Because of the Court decision (or lack of decision, if you will), my hunch is that there are some multi-family owners that are upset by this and thinking "I need a way out of this!".

 

 

Somewhere there is an investor (or broker with access to appropriate investors) that is looking to acquire a "low maintenance" multi-family property. Somewhere else there is an investor needing to show a loss to offset capital gains or for tax purposes. If investors falling into either category knew to be "ready", they (through a broker) could be contacting owners of rent control properties today to inquire about getting them out of their current situation. Deals could be hatched because of this situation.

We all know that a big part of commercial real estate is seller motivation. Since we are all human, emotion can play a role. Catching someone during a week when emotions are running high could be the best possible timing.

Meanwhile, knowing what these properties are worth and whether or not you can make the numbers work given the current status comes from doing your homework ahead of time and being prepared. (Or, having a research company like mine put you in the best possible position.)

https://www.reuters.com/legal/us-supreme-court-wont-hear-clash-over-new-york-rent-stabilization-laws-2024-11-12/

Opportunities From The Drop In Multi-Family Construction

Statistical trends can be viewed as opportunities in real estate. Those in the article linked below indicate that there is already a drop in planned multi-family construction. There are several ways those findings can be interpreted, but one of them is seeing opportunities.

 

Having less construction of new multi-family properties does not mean that fewer people will be looking to rent. As home prices continue to rise in many areas, the number of renters might actually increase. 

 

What these statistics could mean is that those with rental properties currently will have more opportunities to keep their units rented in areas, such as north Texas, which see the decline in new construction.

 

Meanwhile, another aspect to this is to consider that while there may be less construction, it doesn't mean there will not be "new" rental units entering local markets. Keep in mind the number of conversions of office buildings and retail space toward residential units. These could be replacing the need for new multi-family construction.

 

Doing the research as to where new rentals are (or aren't) coming from is the best way to uncover opportunities in locations you know and work, whether for an investor, developer, broker, or contractor. 

 

Some will say that knowing how you could increase your rental income a couple of years down the road doesn't pay the bills next month. However, those who stay ahead of the game are the ones that benefit from long-term planning. 

 

 

https://rejournals.com/new-multifamily-construction-falling-across-united-states-with-texas-cities-seeing-especially-big-dips

 

 

 

Bringing Negotiating Power Back to the Real Estate Buyer

Part of why I place a huge emphasis on creating opportunities is the added negotiation strength doing so can bring. Whether commercial or residential, if you are the potential buyer, your preference is to have zero competition. That rarely happens with a "listed" property.

 

By having solid market research to provide you with negotiation points, being the only one negotiating opens up your ability to add demands which help you in the long run while aiming to get the deal done. 

 

 

 

The article linked below shows a couple of examples from the residential side, such as the seller paying off solar panels to help the buyer. If the buyer hadn't asked, the seller was not going to volunteer. As this article also reminds, the restructuring of residential buyer agent commission should NOT mean that buyers won't have as much negotiating power. 

 

It shows the benefits of using market research and creating proposal elements in your favor. This could either make or break a deal or save a buyer thousands of dollars while the seller gets a deal they would not otherwise have gotten.

Allow me to help you uncover creative ways to get more deals done.

 

https://vermontjournal.com/real-estate/real-estate-negotiations-making-a-comeback/

 

 

Increase in Hotel Space Creates Demand for Short-Term Rental Properties

Consumer travel has done more than bounce back, as indications are the increase is here to stay. In addition to seeing an increase in hotel transactions, now we are experiencing an increase in new hotel construction. Some projects are happening in areas already well populated with hotels.

The hotel industry is not going to publish or support any statistics about short-term rentals, especially single-family properties, but, as the song says, you can't have one without the other. No matter how many hotels there are, more and more consumers don't like noise in the hallway, something seemingly always "out of order" during an expensive stay, and things like having to pay to park when already paying to stay there.

Some municipalities, or portions of them, restrict short-term rentals, typically within proximity of major hotels. Having the right research person on your team could be the difference of finding an ideal rental property location. As data, such as shown in the below linked article, continues to reflect a demand for accommodations, so does the opportunity for real estate investors and professionals to take advantage.

https://www.bdcnetwork.com/home/news/55239451/hotel-construction-pipeline-surpasses-6200-projects-at-q3-2024 

Real Estate Wealth By Leaseback

It's hard to believe there are still some brokers who complain as if "There is no inventory!" or "I don't have enough business!" when there are so many opportunities out there.

 

The (below linked) story of one of thousands of homeowners that want to stay where they are but can't afford repairs and improvements should be enough inspiration for real estate brokers as much as investors.

 

When you come across situations like this, chances are the owner has a solid amount of equity in the property. By running the numbers, you could look into buying their mortgage note to pay it off. Look into rehab costs, and compare those expenses against the current market value. See how those numbers work against what the current owner is paying in monthly expenses.

 

If you can keep their monthly costs the same by doing a long-term leaseback, you can create monthly cash flow while owning a home you can then rent out or resell at a profit when the long-term tenants either pass away or decide to move.

 

This opportunity is not easy, but it is there for investors and brokers sharp enough to make it work. My team and I can help to create enticing proposals and put this plan into action. If not, you can keep complaining about the lack of business while others are moving forward.

 

https://www.npr.org/2024/10/30/g-s1-30916/housing-crisis-affordable-homes-deteriorating-shortage-repair