Benefits of the Dog Days in Real Estate

The pandemic brought on a significant rise in dog and cat adoptions which continues as we move on. However, as consumers are forced to relocate to rising rent or mortgage costs, some of them are getting rid of pets, often resulting in deliberately harming them.

 

It's nice to see articles like the one linked below showing officials finally recognizing this problem. As one that creates opportunities for real estate developers, investors, and brokers, I'm here to tell you that there are opportunities which can bring about benefits when it comes to tenants or buyers and their pets.

 

A couple years ago, a client of mine that owned a 6-unit apartment building with a yard loves dogs. Research showed that there was not a 'dog friendly' rental available within at least a couple of blocks surrounding her building. Her building had a yard. She installed a dog run, and marketed the building as "dog friendly". Soon after, all six units were rented by dog owners. The dogs got along and played with each other, while the tenants worked together to keep the yard clean because they all benefited from the pet-friendly atmosphere. Tenants would watch each other's dogs. 

 

How did this benefit the landlord?

 

 

 

Think about it. Those tenants couldn't find anything like that in the area, so they were not looking to move. The landlord had "happy" long-term tenants while surrounding buildings faced the usual turnover. As you would expect, the cash flow for the building increased for the long-term. 

 

Let's connect. Perhaps my research can find a good "pet friendly" opportunity to increase your profits. Maybe we can develop a community of build-to-rent single-family homes using the 100% Funding on Vertical Construction program my clients have access to.

 

 

https://www.presstelegram.com/2024/12/18/la-county-aims-to-keep-people-and-pets-together-in-rent-stabilized-housing 

It Was A Good Deal Before The Research

Creating opportunities for success in real estate often involves a lot more than the property or parcel when it comes to determining the potential for an investment or an asset. It often involves a lot more than the rates at the time of the transaction, especially when you consider that a significant rate reduction opens the door for a refinance.

Multi-family opportunities are starting to be stronger than single-family ones, especially as we prepare for the new year and possible changes it will bring. However, researching the overall rental market is becoming an even more important step. New research shows how some cities and areas have much different supply and demand than others. Without researching, real estate investors and developers could be making a very costly mistake.

Earlier this month, I was involved in promoting an off-market deal of land for residential development in the Austin TX area within proximity of two major manufacturing plants. I was all set to include my access to a 100% vertical construction funding plan, which could have resulted in up to 1,200 homes being built for "no money down". Of course, I needed to do my research to make sure the demand was there before putting my stamp of approval with my team.

 

 

Researching the Austin area shows that there are currently (as of Dec. 1, 2024) more than 60,000 apartments under construction. That total is for "under construction" and does not include the thousands of apartments (and single-family rentals) currently functioning. The current number of pending apartments will increase the number of rentals in and around Austin by more than 20%. That fact told me that adding more than 1,000 homes, whether for rent or sale, would be competing with thousands of other options for tenants or buyers. I then found out that average apartment rents in Austin are down by more than 6% over the past two years.

Consequently, my research saved me a lot of time and effort to market an opportunity that would not have been viable. However, my role is to create opportunities in real estate. Miami, Salt Lake City, and Charlotte are two other markets faced with the same issue.

Back to the drawing board. The goal is to find other "positive" opportunities. Kansas City is an example. Rents there currently average $1,165 per month, which is 7% below the national average. Meanwhile, the median income there is $78,000, which tells me there might be room for higher rents. This is where having a research person comes in handy, as he or she could be on the case for you right now. If you don't have a research person or team to help grow your income, let's connect!

Flip The Plan If Not The Property

In recent weeks, I have noticed that more of the real estate investors I talk with have been telling me how profits from flipping residential real estate continue to drop. It’s a “half full half empty” situation, since there are profits even if not as much as previous years.

The article linked below bears out what I have been seeing and hearing. My reason for pointing this out is not to be discouraging or address the apparent downward trend for flipping. As one who continues to focus more with collaborations and consulting with investors and developers, I’m here to create more effective solutions.

My private coaching and consulting with real estate investors often results in developing other strategies to consider in addition to a flip. I am always strongly advising investors to run all of the options when uncovering a potential good investment deal. In other words, look at options beyond flipping for ways to increase your profit potential from an investment.

 

Sometimes a property makes more sense as a long-term rental, short-term rental, or for BRRRR. Perhaps it makes more sense to tear down and rebuild to make it a luxury property or improve the conditions. You won’t know unless you consider all options. 

Research like what is shown in the below article may discourage some investors from pursuing more properties. When that happens, it opens up more opportunities to those that know to pursue every possible angle. Let my team and me help with your efforts!

 

https://www.scotsmanguide.com/news/home-flipping-proves-less-profitable-in-the-third-quarter/

 

Getting Around Supply Chain and Construction Delay Issues

While some real estate developers and investors see uncertainty in South Florida, I’m seeing opportunities. There are ways to work around several of the key challenges and get a project done while others around you sit back and speculate.

Supply chain and funding issues for residential are huge challenges, but there are ways to work through them. There are some concerns that putting inexperienced people and contractors in construction situations can do a lot of damage (per the linked article below), and they are valid. However, these situations don’t have to stop you from cultivating a deal, especially in Florida. 

One way to eliminate supply chain and construction delays is to go with modular housing. Having one or more residential or commercial homes or buildings delivered and professionally assembled when scheduled to meet the delivery date is a crucial element of success. My team and I can assist you and your team in making that happen.

 

 

On the residential side, a developer working with an established home builder (at least five successful builds within the past two years) can now receive 100% funding on vertical construction. The program works for one house or an entire development, provided the land is used as collateral. This program is an ideal solution for a developer lacking a strong credit score. My team can assist you and your team to make that happen!

Parcels available now to make these things happen in your favor may not be available months or years from now when the challenges stopping you now are resolved. Let’s connect and collaborate for mutual benefit!

Meanwhile, below is an how analysts are looking at South Florida, just to further the point:

https://www.law.com/dailybusinessreview/2024/12/13/real-estate-trends-to-watch-in-2025-restructuring-growth-and-challenges-in-south-florida/?slreturn=20241215181900

 

 

 

Whether They Buy Or Rent, Be Ready

 Many of the opportunities I have seen and found in recent weeks center on "build to rent". The below linked article shows reasons why this is happening so much. Fewer people can afford to buy a home in an area they would ideally like to be able to buy in.

I can't help but reflect on one of the examples from the article, which is about a couple living in Southern California deciding to purchase their first home - in Minnesota instead. My point is that if buying a home is important enough, consumers can find one even if in a totally separate market. If the living situation is more important, the chance of a consumer being able to be close to where they want increase by having the ability to rent.

 

However, this is not written for consumers facing the rent and/or own situation. I'm looking to get the attention of real estate developers, builders, investors, and brokers whose business could benefit by pursuing and working with those consumers.

 

 

 

A developer and/or investor could be looking into locations suitable for homes which are affordable for buyers OR to serve as long-term rentals. Brokers could be bringing scenarios to current renters, showing them what they could buy for the same (or less) than they are currently paying for rent. As the article below indicates, there are people in desirable areas that are fine with relocating in order to own a home.

 

Let's connect and explore how we can collaborate on opportunities for mutual benefit!

 

https://www.axios.com/2024/12/14/first-time-homebuyer 

 

 

 

 

How St. Louis Could Be the Gateway

It's still another of example of how performing research and keeping track of upcoming opportunities can lead to a big pay day in the future. This Friday (12/13) is scheduled to be a big day for St. Louis, and could be even bigger for real estate developers, contractors, and brokers that stay on this situation, whether in St. Louis or not.

 

Legislation is in the works to allot $100 million for affordable housing and neighborhood economic development throughout the city of St. Louis. The goal is to have it be in place by Spring of 2025. I'm sure some of the real estate professionals and investors will skim by this because there is nothing immediate. (The specifics are in the below linked article.)

 

I'm writing this for those that see the potential for significant opportunities. This is an ideal chance to form a collaborative partnership that would bring financial and business benefits for years to come. If you wait until after this (and similar in other places) passes to start planning, you would be months behind those who will be ready to pounce with initial proposals.

Now is the time to collaborate. For example, I already have access to:

 

+  "Pre-constructed" housing that can be delivered and assembled when scheduled, eliminating construction and supply chain delays

+ A 100% Funding on Vertical Residential Construction Program

+ Technology like Custom Interactive Virtual Staging to help pre-lease or pre-sell proposed properties

+ Extensive market research, feasibility study, and offering memorandum creation experience

Instead of saying, "How did they do that?", you can be the one on the inside with deals in place. Let's connect!

 

 

https://www.stlpr.org/government-politics-issues/2024-12-11/st-louis-rams-settlement-money-tishaura-jones-megan-green

Take Control Ahead of Rent Control

The debate goes on about rent control and its impact on the real estate market. It seems like people within the same community can't even agree on how it should be handled. Reactions among tenants and investors vary. It's amazing to me that, according to the below linked article, there is rent control consideration for mobile homes in one part of Maine. 

 

Timing matters, since many big cities face a housing shortage, which would warrant new development and/or conversions from unused office space to residential. However, if rent control is looming, it plays a big role in making major decisions.

 

 

 

These factors could be enough to steer real estate investors to a different market and stall some communities which are heavily involved in rent control. It's another reason why you need to have the right research on hand before making decisions which are crucial to your success in real estate, whether as an investor, developer, broker, or contractor.

 

My team and I are happy to work with you to make the best possible determinations!

https://propmodo.com/rent-control-battles-shift-locally-as-federal-threats-fade/

If You Can't Work There, Maybe You Can Live There

It's about time that there is an effort to make it easier to accomplish something that can help real estate professionals, investors, and contractors. We have a high rate of office space vacancies and a need for more housing in many of the same cities. 

 

The cost of converting an existing modern office building to apartments or condos has to be a lot less than new construction. We are starting to see some municipalities ease up on zoning and other restrictions to favor making that happen.

 

With this advancement, there will be opportunities to be unique. Let's think about a couple of the cold weather cities mentioned in the below linked article like Minneapolis and New York City. Why do buildings need to be one or the other (office or residence)?

 

 

 

Suppose there is a 10-story office building at the moment. Let's say current demand fills up the first through third floors with office space. Why can't floors four through ten (only) be converted to residential? 

 

Think of the possibilities. Living in the same building your office is at eliminates commuting time and costs, added costs of eating out, and drastically reduces automotive costs. Business owners with an office in the building could potentially include a residence within a compensation package. There could easily be a staff person in the lobby to receive deliveries for tenant offices and residents. Common amenities like a fitness center or snack shop could function seven days a week (instead of only during office hours).

 

Look at what serves the most people. My team and I are happy to work with you to make these things happen in your favor!

 

https://www.governing.com/urban/cities-cut-red-tape-to-promote-office-to-housing-conversions

 

 

Build-To-Rent Is Building Up

I'm seeing even more opportunities for build-to-rent communities - and in areas to buy up unrelated single-family homes - within the past few months, and it is easy to understand the trend. 

 

For an increasing number of consumers, the target audience, it has become necessary to rent an ideal home instead of coming up with a large down payment and being forced into a long-time mortgage commitment. For developers and investors, it is about spreading out. Owning one building or property, no matter how large and profitable, has the "putting all of the eggs in one basket" effect. One problem can create multiple vacancies. Whereas, having numerous properties spread out makes a single problem minimal in terms of an entire portfolio.

 

Those that think that big investors are not noticing this trend should read the linked article below, which details just how many investor groups own many single-family rental properties just in the Atlanta area.

 

 

It also does not have to cost as much as you would think to get started as a single-family rental developer. One example is "Cottage Homes On Wheels", which have a number of rental uses and are 'move-in ready' within 100 days. For example, I have a way to utilize these for student housing at college towns. You could be renting to more than 200 students and bringing in six-figure returns for less than $1 million to get started. I also have profitable scenarios for temporary and employee housing. 

 

Let's work together to expand your business to benefit from owning single-family rental properties!

 

https://www.fox5atlanta.com/news/corporations-ownership-metro-atlanta-rental-homes-analysis 

 

 

 

 

Plenty of Opportunities - Outside of Chicago

Part of market research for real estate professionals and investors should be about reading the room. I'm still finding some agents and brokers that only look at the transaction and the numbers and ignore important intangibles that can make a huge difference in making a successful deal happen.

It's not always 'positive' research that can drive a deal. Take the below linked example of the recent decline in business licenses within the city of Chicago. I'm sure some brokers are asking themselves, "What does this have to do with real estate?". If they are asking that, my gut tells me they won't be getting as many deals done over the next year.

Fewer businesses means a much reduced demand for office, retail, industrial, and mixed use space. Even at a bargain rate, there may not be enough incentive for a potential buyer that knows it would be tough to fill the space.

This is where performing and updating market research comes in. The business license decline is in Chicago. Although Chicago is a big city, these statistics do not apply to the suburbs or distant communities where the cost of housing is significantly less as well.

"Don't go here" does NOT mean "Don't go anywhere"! Success in real estate is about creating and presenting good opportunities. An "Instead of Chicago, look at (name of community)!" presentation could work wonders.

Let's discuss the next opportunity I can help you to create!

https://www.illinoispolicy.org/chicago-business-licenses-hit-lowest-level-since-pandemic/