Real Estate Problems Are Also Learning Experiences

We all know how things don't always go as planned, and the problems that can result from them. However, some people don't pay enough attention to how those problems often lead to long-term solutions that would not have occurred were it not for the original and unanticipated problem happening.

 

I love the quote in the below linked article from a restaurant chain CEO which says "Never waste a crisis". It is included within the story about how they are recovering from a bankruptcy filing resulting from the pandemic and the steps they took. Over the years, I have found that people involved in a major crisis in the past are often great to work with because of their first hand knowledge of what was and "was not" done when it should have been. They make certain the same problem doesn't happen again, or if it could happen they know to run away as quickly as possible.

 

Over the years I find that a percentage of real estate developers, investors, and brokers do not take the time to review the entirety of a project or proposal in order to find exactly where and why a significant problem originated. This is exactly why I do my best to get my students and clients to track "everything" as a new project begins and progresses. Being able to go back and find that (for example) "If I had asked the lender about X, Y, and Z, I would have know that" moment that becomes the lesson for all future projects.

 

There are times when having a full understanding of what went wrong is more significant to a future project than focusing on what went "right".

 

https://www.qsrmagazine.com/story/4-fast-food-chains-that-bounced-back-from-bankruptcy-and-how-they-did-it/

 

 

When State Funding Tax Benefits Leave and Come Back

Tax credits or incentives from the State or a municipality are often what turns on the green light toward getting a build or a deal done for real estate developers and investors. Those factors can be the difference in an entire deal being worthwhile or a cause to pass. As much as researching the numbers, the location, demographics, and market trends is important when considering, there are still more considerations when government is involved.

 

The (below linked) situation involving a proposed affordable housing development on Chicago's north side is an example of a complicated situation. A $56 million dollar development project has been awarded based on state tax credits being issued, and meeting guidelines for eventual tenant income levels to be met upon completion. However, this project has been in the works for years, and was stalled when the State of Illinois Housing Development Authority was not awarded those same tax credits in 2023. 

 

Since I am not in any involved in this specific situation, I can't speculate as to whether or not there is additional investor risk in executing this project with the possibility of benefits not coming through within the next couple years. Chances are it has been addressed, and favorably for the developer and investors involved. 

 

There are lessons for those of us that work behind the scenes to create opportunities for real estate success. Those lessons starts with not giving up. We all know that some investors would head for the hills when the funds were not awarded in 2023. The next lesson is to revisit the numbers and the opportunity to be ready to move forward upon the funding being restored, which is what happened here.

 

Another factor is looking at the tenant income considerations and how possibly needing to adjust rents to meet guidelines could impact the future of the investment. It is possible that income increases will enable the landlord(s) to increase the rent while staying within guidelines. However, it is also possible that operation and replacement costs could rise to a point where the income potential is forced to be reduced.

 

Determining the rewards should be in relation to determining the risks. This developer that hung in there and plans to implement this project clearly hung in there and sees the long-term benefits. In this case, it takes a village to create one.

 

https://blockclubchicago.org/2025/07/23/howard-street-affordable-housing-project-moving-forward-with-state-tax-credits/

 

 

57,000 Canceled Home Sales In June

Obviously, the numbers need to be in your favor in order to move forward on a real estate deal. However, I continue to point out to my valued clients, students, and connections that it takes even more than the numbers to make a deal worthwhile or to take a pass.

 

The "If you build it, they will come" theory of marketing is taking a hit within the real estate community these days. These days it is about more than economics, as market conditions, political trends, rising costs, and job uncertainty are clearly taking a toll on the real estate community. A lot can happen before a transaction gets to the closing table, including an increase of instances where it does not make it to closing.

 

I continue to see and hear buyers, sellers, brokers, developers, and lenders tell me of their plans for "as soon as (property) closes". Many seem stunned when I ask, "What will you do if it does not close?"

 

For the month of June (the most current research available as of this writing in late July), we saw another increase of pending residential transactions "falling through". Per the below linked report, it was the most ever "falling through" of properties ever in the month of June. With school starting in August in many more locations, June is a crucial month for moving and getting settled for the coming school year. Seeing that 57,000 pending home sales were canceled within a 30 day period should be cause for concern for real estate professionals and investors.

 

We don't know whether or not this trend will continue or reduce. What I know is that the need for contingency plans is on the rise. Looking for backup offers, continuing to bid and make offers, and pursuing additional opportunities should be a part of your plan, no matter how close you get to a closing date.

 

Moving to the next step in your prepared plan is more effective than having to go all the way back to the drawing board. Connect with me, and let's get a solid plan of action in place.

 

https://www.redfin.com/news/pending-sales-fall-through-june-2025/

 

 

When The Real Estate Deal Depends Upon The Research

Years later, how to make a 62-acre commercial site near Chicago's Midway Airport more functional than it has been for years is still an ongoing discussion. Some want more of the scattered and still operating retail stores. Others want to convert to industrial use, with an active proposal being voted on next month. Still others want open and green space for residents and visitors to enjoy.

 

Chances are most real estate professionals and investors will not pay any attention to this story, especially those with no interest in what goes on in the Chicago area. As my clients and students know, situations like this are worth monitoring from a distance. Participants in the real estate world can always learn from how situations are handled from all sides.

 

We have a major developer preparing the paperwork and designs needed in an attempt to implement a zoning change leading to an industrial complex. There are politicians and local representatives that will need to be impressed with that proposal and vote in its favor. Meanwhile, there is opposition to change. Being able to learn what elements of proposals with millions of dollars and plenty of jobs and opportunities to go along with it could help future proposals and projects to happen. Whether the proposal for an industrial property build passes or not, there is plenty to learn about what did and did not work in its favor.

 

Although this is a large-scale situation, plenty of multi-million dollar opportunities are proposed and voted upon around the country which can be a difference maker for real estate developers and investors. The more research and information you have to support your cause, the better the chances of making a life-changing opportunity happen. However, it won't happen without the right research. 

 

 

https://patch.com/illinois/southside/developer-wants-demolish-ford-city-mall-proposes-massive-redevelopment-industrial

 

 

Large Companies Get Turned Down, Too

I see and hear so many excuses from commercial and residential real estate developers, investors, and brokers about "why not" instead of "How can we.....?" Although it is understandable that a smaller company sees challenges of competing with the 'big boys', there can be advantages if presented the right way. That 'right way' is typically a combination of research and marketing strength.

 

One of the things I remind my clients and students is to turn a negative into a positive. One example is showing your focus. A huge project is no problem for a company with 100 employees. What if you have five employees? How do you compete for business?

 

Think of it from the point of view of the entity which awards the bid, contract, or project. If they award a multi-million dollar project to the company with 100 employees, their project will be one of multiple projects taking place. However, if it is awarded to the company with five employees, their project would be the biggest, if not the only, priority at all times. The "five employee" entity gains the possibility of needing and being able hire more employees to meet the demands of the project, thus fueling expansion. Successfully completing this project now puts them in a higher standing to pursue future projects of the larger magnitude.

 

Or, you can think you can't compete with the big boys and not even try. Below is the link to the just revealed story that one of the largest corporations in the nation was turned down on a zoning request in New York City for what would likely have been a billion dollar project. It serves as a reminder that proposals, research, and conditions for a proposal need to be a match, regardless of the size of the entity. 

 

The best opportunities for business growth are created. My team and I create opportunities.

 

https://www.6sqft.com/city-council-rejects-zoning-changes-needed-for-ballys-bronx-casino-proposal/

 

 

 

 

Plenty of Room In A $3 Billion Project If You Know How To Find It

It's enough to think about how many real estate investors and companies miss out on significant opportunities because they lack the research it takes to find them. Another "problem" I encounter far too often in my conversations is how many real estate entities somehow think they don't need to market or advertise their brand constantly.

 

By the time you say "Ooops, I should advertise", it may be too late. No matter where you operate from, there may be ideal opportunities in far away places that you will never know about if you don't make the effort. The latest example comes from Baltimore, where the 'Greater Baltimore Committee' has revealed how $3 billion is being invested toward further enhancing the Water District. The results include a ton of mixed use, residential, retail, restaurants, and attractions which will be a direct result.

 

Plenty of opportunities are there for investors, developers, lenders, contractors, brokers, and direct services such as legal, title, and administration. However, this project started more than 10 years ago. That means that those investors, developers, and so on, already had their foot in the door. Representatives of those companies either found these opportunities (research) OR were well-known enough to be invited (marketing).

 

There are far more sources than the Greater Baltimore Committee, even if not for a $3 billion overall project. If you don't know how to find them and/or they don't know how to find you, these life changing opportunities are not going to happen.

 

It's the old saying about how the airplane needs a full tank of gas whether it is full or 20% occupied. More people need to know about who you are and what you do.

 

https://www.prnewswire.com/news-releases/baltimores-historic-waterfront-undergoes-3-billion-transformation-ushering-in-a-new-era-of-urban-development-302506765.html

 

 

 

Allow Preliminary Real Estate Research To Be Taxing

 It continues to amaze me how many real estate investors manage to choose convenience ahead of location when considering a transaction. Of course, it is easier to work with opportunities that are within proximity. You may have knowledge of surrounding areas that come from being in and around the area for years.

 

However, when it comes to crunching the numbers, comparing an opportunity against those outside of your geographic sphere could reinforce or discourage a decision ahead of possible consequences. I often ask my coaching students to compare an opportunity they are considering against one hundreds of miles away in terms of cost and benefits. Doing so does not mean they should jump to a "foreign" opportunity, but it might be enough to make them reconsider their thinking. 

 

One prominent example is property taxes. I see a lot with residential, where the same house 20 miles away might cost $250 per month LESS because of much lower property taxes. The impact of these consequences can be even more significant on the commercial real estate side. Commercial often has different considerations than residential.

 

The (below linked) article shows how much difference property taxes could make on expenses surrounding an acquisition and future income potential. While it adds to the preliminary research, it might show a similar opportunity could be more profitable (or accomplish your purpose) within a completely different area. If not, you have even more of a base of comparison to further justify your original decision to partners, team members, and/or other investors.

 

https://www.foxbusiness.com/economy/new-jersey-tops-nations-highest-property-tax-list-9413-while-southern-states-offer-relief

 

 

 

 

From Grocery Store To Affordable Housing

Repurposing and conversions are becoming a "thing" and could wind up among the top real estate stories for 2025. Now I'm seeing some possible conversions which are not the more common office to residential types.

 

We sometimes see new residential construction focused around where major grocery stores, schools, and other community amenities are. Interesting to see the (below linked) story about the possibility of a former grocery store space being considered for conversion to residential.

 

The important thing about these stories is the concept of looking into what COULD be done with a struggling property. In the case of the grocery store property in Cleveland, the new residential project is able to happen because of a zoning change. While it took a willingness on the part of the municipality to make it happen, someone had to be behind the zoning change proposal and implementation. Projects like this one happen because of thinking beyond the obvious AND having the research to back it.

 

I'm always telling my coaching and consulting clients, connections, and partners that seeing "what is not there" can be the spark for a new venture. Who in your office or on your team handles exploring for new possibilities for which there would be little to no competition?

 

If you don't have an immediate answer, let's connect. You could have someone else on your side within 24 hours. 

 

https://www.cleveland.com/news/2025/07/vacant-cleveland-grocery-store-may-find-new-life-as-120-affordable-apartments.html 

 

 

 

Getting The Bus To Bring Your Target Audience To Your Front Door

Seeing the (below linked) article about the lack of protection from the sun at many bus stops in a major city got me to thinking about how this situation could be an opportunity for real estate and business professionals in cities large enough to have a bus system.

 

People often have to wait for several minutes, sometimes longer, for the next bus to arrive at corners where there is retail or office space in operation. Suppose these buildings have room in front for a few chairs where people could wait and enjoy the air conditioning, heat, and/or protection from rain, snow, and wind in addition to the sun. 

 

Let's say the average wait time is 5 minutes. If your building can "host" people waiting for the bus throughout the day, you could save your municipality thousands dollars of construction and improvement costs since they would not need to build a waiting station with protection. 

 

There are plenty of retail and office buildings next to bus stops which spend thousands of dollars marketing and advertising for new business. Meanwhile, they may be missing out on a consistent opportunity to attract their target audience.

 

Someone "waiting" inside their location can certainly get there, and likely on a regular basis. For some businesses, that is half of the battle. They are a captive audience for those few minutes, especially if it's every day. If they are going to use your chair to wait, they can watch or listen to information about your business, or buy your product or service at the same time. 

 

Depending upon the nature of your business, you could hire or allow a specialist to take care of people all day long while waiting. Perhaps they could get a quick trim, buy a beverage to take with, or do something like watch a video of a nearby apartment for rent or home for sale. Or, they can stand outside in the hot sun or the rain. You have a choice.

 

It's all about being where your target audience is.

 

 

https://wdet.org/2025/07/02/give-em-shade-nearly-90-of-detroit-bus-stops-lack-adequate-sun-protection/

 

 

 

Secure A Better Position As A Landlord or Investor

There are not very many things that tenants and landlords agree on, but increased security is one of them. With all of the real estate related concerns in Florida (infrastructure, insurance, disasters), it is nice to see a couple of updates to the newer home security regulations which went into effect in Florida at the start of this year.

 

An emphasis on increased security is not something which is (yet) being addressed with this kind of urgency in other states. Whether it is or is not in the state(s) you are involved with, there is a lot to be said for having these requirements, which are explained in the article linked below. The point of the Florida legislation is to hold property owners accountable for home security instead of leaving it more to the tenant side.

 

This is of interest to me because one of the items I point out when working with real estate investors and landlords is to highlight improved security features in proposals. Far too many landlords don't put in "enough" security, sometimes leaving tenants or potential buyers to take on the added expense. When they have an improved security system or method in place, I'm always suggested it be highlighted to potential tenants and buyers.

 

Those in states that do not (yet) have these home security regulations in place should, in my opinion, take note of what they are in Florida. They could very well be coming to your state(s) in the foreseeable future. However, there should be no need to wait until you are forced to make these changes. In these times when potential buyers are even more picky and potential tenants are looking more closely at amenities when comparing, having these measures in place before they become required adds value.

 

If your state does not have security requirements currently in place to match those of Florida, and your building does, chances are you have an important consideration to offer to your target audience. You could also get this done more cost effectively. It's not like prices and installation costs will drop the minute your state passes the legislation.

 

It's about finding every possible advantage to offer a potential buyer, tenant, or partner. Happy to collaborate to find advantages for your side!

 

https://www.wfla.com/bloom-tampa-bay/florida-law-requires-apartment-complexes-to-boost-security/ 

 

 

Saving Real Estate Documentation Can Save Time and Money

One thing I get questioned on by valued clients, students, and connections is how and why I keep track of anything and everything related to my business, and have done so for years. The range is from notes about phone calls and correspondence to storing hard copy of documents to keeping folders on the computer (or storage) about specific clients and accounts. 

 

Going back to the days before computers took over, I used a series of spiral notebooks and kept a journal about my activities every business day. There have been times while in my office that I have gone back through them and looked to see where I was, what I worked on, and who I talked to 30 years ago on that date. 

 

The inspiration for starting this came during the late 80s. A valued client revealed that they could no longer pay me the entire amount because they were involved in a lawsuit which could shut down the project. He then went on to show me all of documentation he was gathering for his attorney to support his case and get paid the amount he was owed so he could pay all of us promptly. That pile of papers contained memos, correspondence, invoices, and incredible detail about every step taken. I got a "This is why I save everything!" lecture.

 

By the end of that day, I brought him a stack of documentation I had about the entire project. It turns out that part of I brought to him wound up being crucial evidence which directly helped with the case, and helped me to eventually get paid. Lesson learned.

 

Never underestimate the power of a "Here is the email in which you said......." situation. I was reminded about this by the news story about a tenant getting fined thousands of dollars for his actions. Those actions followed the landlord causing problems for the tenant. My bet is that both sides WISH they had the documentation and records like I was trained to keep.

 

A few dollars for a new file cabinet or more online storage can go a long way toward protecting thousands of dollars for your time and effort.

 

https://www.12news.com/article/money/consumer/scottsdale-renter-fined-for-bad-review-of-denali-real-estate-property/75-6179d05b-33f9-46e2-9000-94558a5dbd06

 

  

Betting On Reaching Your Target Audience

In real estate, like with most businesses, the goal is to be where your target audience is. There is also something to be said for being "first in". Suppose you own or represent (broker, investor) a retail jewelry store which is looking to expand. 

 

There could be a good as gold opportunity (pun intended) on Broadway in Manhattan between 44th and 45th Streets for a new location ready within the next four to five years. You won't find that opportunity reading jewelry industry publications. The (below linked) story about a major casino project targeting that block with a 992 guest room hotel will result in a constant flow of "big spenders" going to that area, whether local or by travel. It's a chance to be where the target audience is. Or, in this case, will be.

 

Chances are that other jewelry store owners are not yet aware of this new information. Pouncing on the opportunity before they do could save many thousands of dollars. Perhaps it could be the difference of making the initial investment successful. Meanwhile, current landlords of retail and office space nearby may be looking for a strong long-term tenant and would be willing to negotiate to get one. The price you could negotiate today figures to be much less than what you would get a couple years from now when the casino and hotel are under construction and the word is out.

 

This is the same opportunity whether the jewelry business is in NYC or anywhere else. Of course, a jewelry store is just ONE example of the possibilities for upscale retailers. It's safe to say that some of the upscale retailers (if not most) are not thinking about positioning themselves for five or more years down the road. 

 

If your research person or team isn't coming up with future opportunities to improve your business and/or investing for the long term, you are missing out. Being "first in" leads to long term profits and benefits. 

 

https://newyorkyimby.com/2025/07/new-interior-renderings-reveal-caesars-palace-casino-proposal-at-1515-broadway-in-times-square.html 

 

 

If You Are Going To Spend A Lot, Create Better Results

When coaching or teaching business people and real estate investors and professionals I often use the term "indirect competition" within marketing strategies. One example of indirect competition is hair salons and skin care products because both are expenses regarding personal appearance.

 

In real estate, alternative solutions are often indirect competition, such as hard money lending vs. conventional funding. There are times it is as much about a faster or more efficient solution than extra costs involved. Perks or advantages can make a big difference when it comes to important decisions.

 

The story about a woman finding a way to make living on a cruise ship work is one such example. Her decision eliminated maintenance, grocery shopping, and having to do her own laundry, which decreases stress and frees up more time to enjoy life. Instead of looking at the same few blocks, she sees the world and meets people from all over. In this case, it is not about saving money.

 

While the subject woman's solutions may not be for everybody, I draw a lot from what she is able to do, which boils down to creating a new set of advantages for the amount she is used to spending. For real estate investors and professionals, creating advantages might be the difference for getting a deal done that would not have happened otherwise.

 

Let's connect and find some advantages! 

  

 

https://www.msn.com/en-us/travel/news/woman-77-moves-onto-cruise-ship-permanently-says-it-s-cheaper-than-living-in-california/ar-AA1HIojk  

 

 

Going Over 1,000 Miles For a Nine-Figure Contract Award

Over the years I have seen way too many real estate and business people with too great of an emphasis on geographic borders. There are times I get the answer (or, as I see it, excuse) of "I'm not going to take a chance in a market I don't know" before he, she, or they spend any time researching the market they "don't know". 

 

It is true that they could find one or more solid reasons not to pursue that market and feel as though their time was wasted. It is also true that the same research could reveal a solid revenue opportunity, or perhaps open a path to still another market which would lead to success. That "success" would happen specifically because they took the time to perform the research, and it would not have happened otherwise.

 

There is the line in the song "New York New York" that says, "If you can make it there, you'll make it anywhere". Although "anywhere" does not apply to real estate, investors, developers, and brokers don't need "everywhere". They need to know how and where they can "make it".

 

More than 20 years ago, I was working on an opportunity for business expansion and found an ideal fit in another city. I was emailing, calling, and even sending snail mail to the executive in that city hundreds of miles away looking to get his attention and present the research I had for him to be able to expand to create a very profitable sale. After multiple attempts, he finally called me to rudely tell me that "I'm not looking to expand to (name of city) and stop calling me". He hung up. I will admit that, about four months later, I sent him a copy of the Press Release in the mail announcing the business similar to his in that city that had just sold for nearly $1 million dollars. Included was my note that he could have been the one receiving that six figure check and included my contact information. However, I never heard from him again.

 

Today, while doing my daily research, I came across the (below) story about a contractor starting on a $114 million contract for major work on two separate high schools in Austin TX. I wondered about how much research and preparation it took for that company to secure a bid of that magnitude, and how many more similar contracts it will likely lead to. A lot came from their ability to win that bid.

 

By the way, the company which won that bid in Austin is based in Minneapolis is more than 1,150 miles. Suppose Austin was a market they "didn't know".

 

https://www.constructiondive.com/news/austin-adolfson-peterson-texas-high-school/751820/

 

How One Commercial Developer Stopped A Direct Competitor Through Research

There is a line from the old TV show, The Honeymooners, which I still use when explaining the need for research to accompany a real estate project proposal. It's from the time that Ralph wants money for a business idea and Alice reminds him about the time he invested in a parking lot across the street from a new movie theater. "People will be going to the movies, and they will need a place to park", she says. His classic response of "How did I know they were building a drive-in?" is hysterically funny. It also brings out the point about doing your homework. 

 

One thing about real estate development is that not everyone is on your side. It may be for selfish or competitive reasons, environmental, financial, or even some sort of personal grudge. It's the way things are. Another element of real estate development is, of course, having thorough and excellent research, whether it has to do with the numbers to make the project work or regarding surrounding conditions, demographics, and/or other real estate projects.

 

I'm always asking my clients, connections, and coaching students to consider "what could go wrong" as much as the positives when a new opportunity is under consideration. Since some projects take months or years to get to fruition, it is important to keep asking questions and adding or updating information as conditions change.

 

The below linked article is a classic example of what can happen as time passes and conditions change. It is about how a major hotel project for Los Angeles wound up being canceled after years went by because of a lawsuit. What makes this significant is that, as the story reveals, the lawsuit was brought by a competitor of the developer that now lost out on the project.

 

It is easy to cast an evil eye toward a developer that would do such a thing. That judgement is for another place and time. The point here is that the competitor did their homework and was able to use their valuable research to prevent a direct competitor from starting up in the near future. That information had nothing to do with the logistics of their already operating real estate investment. However, by investigating something which could negatively impact the long-term success of their project, they came up with information which likely means many thousands of dollars more for their bottom line. Some people see this as screwing a competitor, while others seeing it as utilizing research to protect a multi-million dollar investment. 

 

Even if another investor is able to overcome the environmental and other challenges stemming from the lawsuit, the "competing" investor would have years to plan or update their exit strategy if they wish to do so.

 

Another reminder that more than just the numbers need to work for a large scale real estate investment or project to work successfully.

 

https://la.urbanize.city/post/after-legal-loss-la-city-council-rescinds-approval-hollywood-hotel-6221-selma-ave 

 

 

 

  

Proving Your Point When Meeting With The Seller

It is no secret that the real estate market now has even more challenges than it brought a few years ago. What seems to be a secret is that some people in the industry have not yet adjusted their work ethic because of the added challenges. This is the case whether for residential or commercial. The world of rent algorithms, rent control, office to residential conversions, ADUs, data centers, working from home, and several other trends were not prominent if they even existed years ago.

 

As one that keeps tabs on certain agents and brokers over the years, I'm noticing how some of them continue to pursue deals (whether on the sell or buy side) without changing or updating their methods. A question from an investor that is one of my coaching clients earlier this week helped me to realize how I am helping my clients and connections to be able to utilize researching (and the all important digging for research) to their personal advantage.

 

My "student" told me that she found a property that seems to match her criteria, and was going to meet with the seller the next day. (Prices changed to use round numbers) She said the seller initially mentioned $200,000, but when setting up the meeting told her "but I don't think the price will still be $200,000". Her next question to me was about how she should handle that.

 

Next, she told me about one of the comps she found, which was a similar nearby property for $190,000. Next, she talked about another at $210,000, and another for $220,000. She was not sure her numbers "would work" at $210,000. Compounding the problem is that the current tenant in this single-family property was going to be leaving within the next three months, leaving a vacancy. The seller wanted out to use the funds toward a more expensive rental property he is pursuing. This tells us there is plenty of motivation, since the hopeful seller is losing a tenant and wants to move on to a bigger and better deal.

 

Here is where the "work ethic" comment comes into play. I don't know who the seller is, but I would bet the ranch that he expects his eventual buyer to go up from $200,000. My coaching student was concerned about being able to "make this work". I went on to tell her how to "make this work for YOU!" and not the seller. The mission is to compare that $190,000 comp to everything about the listing she "might" pursue. There is the square footage, age and condition of the property, total acreage, location and proximity, and every possible amenity. Upon drilling down on that, look for comps for the $190,000 property and find what you can that is at or below that price. Find advantages that are on par or better than the subject property. Do a print out of everything favorable to go to her meeting with a stack of papers to show the seller.

 

A big part of my coaching is the public speaking and presentation element in addition to the real estate part. My mission was to get her ready to go to her meeting with printouts to prove her research. It was also to start the meeting by saying, "I'm glad you agreed it's not a $200,000 listing". And continue with, "I'm thinking around $185 to $190, depending upon......" and go from there. Next you go into how soon you may have to replace the roof, the HVAC, and so on and how you may "need" an additional credit on the purchase price. There is also pointing out how she would have to spend to market and take on added risk if she could not find a tenant right away. Ideally, by the time the seller could speak, he would be concerned about how much less than his $200,000 he could get from her, or if he would have to start over with another potential buyer. Meanwhile, my student either gets an even better deal on a property she is already interested in or goes on to her next possibility.

 

There are too many people in real estate that never had to make this kind of an effort to get a favorable transaction done. Many of them are not willing to do so. If you are, you could open up an opportunity for a favorable transaction and be on your way.

 

https://RealEstateMediaCoach.com 

 

 

Going The Extra Mile For A Deal - Pt. 1

How much 'power' you have to utilize your business skills could help with how quickly you do (or don't) move a real estate deal forward. There are times when going above and beyond the job description can be what makes it or breaks it. Over the years I have witnessed several instances of making a difference to get a deal done. One example was seeing a broker rent a moving truck for their buyers because the lack of moving expenses nearly stopped their deal from happening. I have seen a completely unrelated business "favor" happen to save the seller a few thousand dollars in return for a real estate price reduction to get a deal done while benefiting both sides.

 

Being willing to personally go the extra mile can directly contribute toward getting a deal done which would not have been completed otherwise. Doing so can also lead to future deals when others get to witness first hand that you are, indeed, willing to do what it takes to get to the closing table. Granted, not everyone keeps notes on people that will - and will not - make the extra effort like I do. Having my personal and private lists of people I know will go to bat to make a certain type of deal happen has directly paid off for me.

 

There are times when there is a need to create urgency to entice a potential buyer or seller into becoming an actual buyer or seller. Urgency does not have to have anything to do with the subject property or opportunity. Like so much in the real estate world, it can be about coming up with a solution. The secret is to find out the motivation, or lack thereof.

 

They won't buy because they don't have a buyer for a property they currently own. They won't sell quickly because they don't have a place to go. Sometimes creating urgency for a buyer or seller makes a deal happen. Sometimes, motivating a broker makes a deal happen. 

 

One example I witnessed was when "Mike", a Managing Broker, went to a morning local realty association meeting attended by brokers from various offices within the area. After the featured speaker, the host would allow a few minutes for brokers to present new deals to the group. Mike raced up and said he has an urgent deal, and "will ADD $10,000 to the commission for the agent that brings me the eventual buyer by 5:00 this afternoon!".  He went on to talk about the (approximately $600,000) listing and its features.

 

Since I had done some work for Mike in the past, I was able to ask him why he was so anxious to get that listing sold that he would give away $10,000. He told me it was because the seller was anxious to buy an (approximately) $800,000 house through him, but could not do it without selling his current residence. Mike "didn't care" about the selling commission because the buyer commission on the $800,000 deal would be the big payoff.

 

What happened? Mike's offer did not produce the eventual buyer that same day. However, a couple months later, he got a deal through one of the agents in that audience who remembered his aggressive approach toward getting a deal done. Mike also got to keep his entire commission. That was a lot of pay for going the extra mile.

 

 

 

Making Time To Get A Real Estate Deal Completed

Let's face it. We all have a love/hate relationship with time both within and away from real estate. How you approach it could be the difference between a successful or a "lost" real estate project. I had a real estate investor student I was coaching and she had found and vetted an upcoming deal. Our scheduled time began with her telling me how much she had to get do within the next couple of weeks in order to make her transaction happen. She saw it as a big problem because she still has her "day job" (that she can't wait to get out of) and her other personal obligations to contend with.

 

Her concerns included monitoring the paperwork for the new LLC she formed specific to this investment, preparing her new website and social media strategies to market the property she was about to acquire, final reviews of all of the paperwork, coordinating with the title company, and having contractors ready to go. She was overlooking the good news that, to this point, there was nothing out of the ordinary which needed addressing in order to make the transaction happen. "I don't have the time it takes to get this done!", she proclaimed.

 

Time management is typically not something I go into when coaching real estate investors or brokers. However, I knew this was the solution to what she envisioned as being a big problem. Some of the "work" she needed to do could be done during non-business hours including the weekend. I let her know that her problem is NOT a real estate problem, and for that she should be thankful. It is a "simple" time management matter.

 

My suggestion was to clear 30 minutes per day for the next 10 days, including her weekend. By doing so, I reminder her that the time would total five hours. I quickly followed by pointing out that the tasks she was faced with should not take up that many hours, and her tone changed as she agreed. Next, I pointed out how this gets her necessary tasks to be able to close on the property completed in well under the two week time frame she has. The line I used to close her on this idea was to point out that she "can use your EXTRA time to work on your website and social media" to get a head start once the property closes.

 

To me, I did my job as her coach because I was able to turn her important real estate concern and "need" into a positive. At that moment, my student got the vision how how she could "easily" get the same tasks completed she was terrified of completing minutes earlier. This is very similar to providing a buyer or seller with the vision they need to want to pursue a transaction. Many people benefit from a successful transaction. 

 

By the way, she found the property she was so anxious about upon utilizing the research techniques I had previously explained to her. No one else, including myself, found her that opportunity she was about to close on. Those of us involved in making real estate deals happen need to be doing whatever we can to provide solutions for others.

 

 Real Estate Media Coach

 

 

Sometimes You Can Have Too Many Real Estate Investors

A big part of the reason I emphasize doing a lot of research in advance so much is because of the time and money it can save by identifying a potential problem before important decisions and financial commitments are made. There was a recent situation one of the real estate investor clients I coach brought to my attention that is an excellent example.

He was about to be part of a four person investor group for which each person would commit $50,000 to start. As wonderful as having that opportunity could be, he expressed to me that one of the people was “not agreeable” to the majority of properties the group was already considering for its first combined property investment. It was understandable that he was worried that it may take them longer than he would like to reach that decision. He pointed out that he and two others were in agreement on wanting to pursue a couple of properties, but they keep getting shot down. Now it was my turn to help him create a strategy for dealing with the “disagree” investor, since that is what I was hired to do.

My answer was in the form of a question. “Why can’t the three of you in agreement form an LLC with $150,000?” My client paused and was not responding. I went on to add that there is a way all four of them could work together, suggesting that he continue to send the fourth investor investment proposals for her review. “If you come up with one she likes, form a separate LLC to accommodate that deal.”

From my perspective, that situation needed to be about my client being able to leverage his available funds toward a real estate investment he found viable. Having two other investors agree and wanting to move forward with him should not be taken lightly. It was possible that the properties the group of three wanted to pursue may not have been in range with $150,000 (instead of $200,000), the collective resources of three investors might be able to put something together to make it work. If not, the three know what to look for when finding another opportunity. Or, maybe the fourth person would agree with something they found and add her share to the down payment or possibly enable an entire purchase.

The thinking behind this solution is that my client’s “problem” opened up for multiple solutions. It did not have to block the LLC and investing path from happening. My client’s reaction was “What a GREAT idea! Thank you Dave!”.

All I did was share my philosophy of asking how something could happen instead of focusing on why it couldn’t. 

 

https://RealEstateMediaCoach.com  

 

 

 

 

The Federal Research Funding Impact on Real Estate

It's an unfortunate way to make a point, but after months or years of doing all of the work involved to prepare for multi-million dollar construction projects, several are being placed on hold. The reasons have nothing to do with the real estate side. Research, properties, infrastructure, and preparation are all in place leading up to the projects. 

 

However, outside funding concerns are the cause of the "hold" on several projects. I'm constantly preaching to my clients, students, and connections about doing plenty of research with an eye toward the entire picture. You have to ask, "What could go wrong?" and it always helps to have a develop an alternate and/or exit strategy in preparation.

 

Several large universities are placing construction projects on hold, and it is due to cutbacks in federal research funding. That has nothing to do with real estate, but everything to do with spending millions of dollars on planning, construction, and personnel. What happens next?

 

Those in charge at these universities will soon be faced with major decisions which impact their bottom line, the density of campus, and the lives of personnel. Research funding for the current projects may or may not return. The properties earmarked for these projects continue to be subject to property taxes and maintenance costs, even if empty or still vacant land. Does the school look into another project or opportunity which utilizes the current available space? 

 

That is not for us to answer. What is interesting is to see how these university officials react within the next 12 to 18 months. The point is that they have already done their real estate research and know exactly the building they can have, access and safety, infrastructure, parking, and so on. This situation provides millions of reasons to prepare for any and every eventuality in real estate.

  

https://www.insidehighered.com/news/business/physical-campuses/2025/06/16/federal-funding-uncertainty-halts-construction-projects 

 

 

 

 

Take Flight of Airport Real Estate Opportunities

It has been in the works for a long time but ground was finally broken for a new brand name hotel in Indianapolis International Airport. There will be an economic gain for the Airport and for the City once this project is in operation. However, whether you are in the Indianapolis area or not, what does this mean for commercial real estate?

 

Let's face it. Other hotels near the Airport are likely to lose revenue as overnight guests choose a more convenient setting. The number of single night stays will probably drop. Supporting transportation services, nearby restaurants and bars, and possibly entertainment venues will lose customers that will have no reason to venture away from the hotel. 

 

Some will see this news and move on, thinking it doesn't impact their commercial real estate lives. And some of them may miss out. If you own or are thinking of investing or owning commercial property within proximity of a major airport, you need to be aware of possibilities which could negatively or positively impact your business. 

 

For example, an investor might be able to get a good deal on a hotel property near the Indy airport by pointing out the potential loss of business. Perhaps they see the need for a conference or convention center which could thrive in proximity to thousands of travelers from other parts of the country.

 

Could this happen? You don't know if you don't do the research. Let this be another example of how having the right information could turn into a huge real estate opportunity. 

https://www.wthr.com/article/news/local/indianapolis-airport-authority-breaks-ground-new-hotel-westin-construction-terminal-campus-midfield-2027/531-7bde189c-4761-40b5-8108-6d21db34cdad

 

 

 

Short-Term Plans With Long-Term Rental Implications

I normally don't focus comments on a move within one specific company but I see enough reasons to make an exception. Many of my valued clients, students, and connections are involved with (or working to be) short-term rentals. We continue to see some municipalities accept short-term rentals while others continue to fight it. Meanwhile, we have even more associations and developments seeking to limit or eliminate short-term rentals.

 

There continues to be situations in and around big cities where we have some communities allowing it being close to communities which restrict short-term rentals. Investors and owners already have the challenges of making sure their business can continue as it is currently established.

 

The "one company" to focus on for the short-term (pun intended) is AirBNB. They just named a new Marketing Director, whose emphasis will be on "marketing, research, and creative" for them. The fact that an established company dominating their industry is adding a key position to focus on research and creative is often the point of my posts, but not in this case.

 

This important personnel move tells me that AirBNB needs to have some key personnel involved in the "fight" to keep their concept viable as more municipalities crack down. Meanwhile, they still need to have the creative strategies for client growth in place to ward off their competitors like VRBO and Booking.com.

 

With the growth in domestic travel evident over the past few months, there will be increased demand for leisure travel stays. At the same time, landlords and investors need to be on top of possible actions by municipalities and associations which could drastically impact their ability to do business where they currently are. 

 

Although the numbers need to work for a property to produce the hoped for income, information about what the near future holds can be even more valuable.

 

https://news.airbnb.com/rebecca-van-dyck-joins-as-chief-marketing-officer-hiroki-asai-named-chief-experience-officer/

 

 

 

A School District Becomes A Real Estate Developer

A new affordable housing development in San Francisco gives us reason to see the case for totally opposite viewpoints for the same project. The spirit of the San Francisco Unified School District to take all of the time and steps to provide housing for educators that allows them to live in San Francisco is admirable. However, their taking on this development when they are not real estate specialists could also have ramifications. 

 

This was a $105 million project, and created and completed on property owned and operated by the School District. There was no need to purchase land, while planning was performed within the reach of the organization, which is there for educating local students and not for planning and developing real estate.

 

Reports say that teachers actually had a say in the design of the combination of studio to three bedroom units. There are plenty of residential developments completed without any input from the intended tenants. Since this development sits on land already owned by the School District, it is likely that no real estate brokers were involved. Other real estate professionals may not have had opportunities for work typically associated with a $100 million dollar project.

 

If this project goes on to be successful (and we will know within the next year), chances are other big city school districts would consider a similar approach. Those school districts would have a means to attract the highest quality teachers because of this amenity. But what does it mean for real estate professionals, lenders, and contractors?

 

This is all another example of why it is so important to research at all times. Being prepared for exactly what could come your way, favorable or otherwise, is a big part of the battle.

 

https://www.fastcompany.com/91344819/san-francisco-affordable-housing-for-teachers

 

  

Why Real Estate Professionals Need To Be On Guard

Marketing of residential properties is on the way to becoming even more complicated while real estate professionals continue to get trampled on instead of embraced. The more agents and brokers I talk with, the more fear I am hearing.

 

Agents and brokers already didn't like Zillow because of how it shares a lot of information that consumers used to only to be able to get from agents. However, these days that is only the start. Zillow appears to be behind legislation pending in Illinois (for example) to require homes for sale to be on the MLS instead of initially on independent services which limit how some properties are marketed and offered.

 

One could argue how Zillow is not a real estate company and is using their power as a tech company to leverage an entire industry in their favor. Real estate agents are already facing challenges because of last year's buyer commission changes. Those were passed supposedly to reduce or eliminate buyer commissions even though months later there is little to no evidence that buyers are saving anything.

 

The problem now is that Ai is a big part of Zillow's success, and its plans to use legislation to increase its presence in an industry it is actually not a part of reflect that. There are more and more agents and brokers that have embraced Ai and make it a more prominent part of what they do. However, that same technology is now on its way to wiping out their income.

 

More than ever, it is crucial for real estate professionals to distinguish themselves from others and offer unique and solid solutions. If everyone starts using Ai, consumers won't be able to tell them apart. That is, if they even have the opportunity to deal with any remaining agents.

 

Be careful what you wish for.

 

https://www.thedailylistings.com/blog/zillows-takeover-real-estate-industry-path-monopoly/

 

 

The Financial Losses From Not Inspecting Will Floor You

Real estate investors, developers, and brokers should always consider "What could go wrong?" when considering a transaction, project, or renovation. I'm constantly preaching this to my valued students, clients, and connections. The next part to gaining an understanding of what could happen is to have, at the very least, a general idea of how you might go about solving the problem.

 

If you uncover something that could be a major problem that would cause financial (or other) harm, it might be worth reevaluating whether or not to continue with the deal. 

 

However, you can't always predict what could go wrong. The (below linked) article about serious problems with faulty construction is an example. I'm sure the developers and managers never thought to check the level of the floors before signing off on completion. That lack of action is proving costly, and in ways well beyond the likely financial impact. 

 

Although this incident takes place in a hospital building in Canada, the fact is the situation could happen just about anywhere. There are lessons to be learned here for all concerned. People that recommended or approved the contractors involved now need to do major damage control in order to keep their current book of business. 

 

The lesson is to go as far as checking levels of flooring and shelves upon completion, but before approval, of final construction. Someone could have been a big hero if they had, even if a broker, contractor, or vendor not directly involved in the mishap which created the problem.

 

Over my years of working with investors, brokers, developers, and other real estate professionals, I have received some flack for double checking work and administration of elements of a project I was involved in but which were not my direct responsibility. The below linked article serves as another example of why I do. I never would have thought to have someone check the level of the floors - until now.

 

 

https://www.cbc.ca/news/canada/toronto/humber-river-hospital-floors-lawsuit-1.7546364