Friday, July 25, 2025

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/

 

 


Thursday, July 24, 2025

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/

 

 


Wednesday, July 23, 2025

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/

 

 


Tuesday, July 22, 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

 


 

Friday, July 18, 2025

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/

 

 


 

 

Thursday, July 17, 2025

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

 

 


 

Wednesday, July 16, 2025

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

 

 


 

 

Tuesday, July 15, 2025

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 

 

 


 

Friday, July 11, 2025

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/

 


 

 

Wednesday, July 9, 2025

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/ 

 


 

Tuesday, July 8, 2025

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

 

  


Thursday, July 3, 2025

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 

 


 

Wednesday, July 2, 2025

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  

 


 

Tuesday, July 1, 2025

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/