Downtown Pittsburgh Atttraction Creates Real Estate Opportunities

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

 

 

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

 

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

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

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

 

 

 

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

Combining Research With Opportunity For Profit

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

 

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

 

 

 

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

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

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

 

 

 

 

 

 

 

 

Selling Real Estate To Maxed Out Buyers

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

 

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

 

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

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

 

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

 

 

Check Out All Elements of a Hotel Investment

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

 

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

 

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

 

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

 

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

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

An Opportunity To Motivate A Seller

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

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

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

 

 

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

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

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

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

Opportunities From The Drop In Multi-Family Construction

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

 

 

Bringing Negotiating Power Back to the Real Estate Buyer

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

 

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

 

 

 

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

 

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

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

 

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

 

 

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

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

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

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

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

Real Estate Wealth By Leaseback

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

 

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

 

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

 

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

 

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

 

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

 

 

Food For Thought When Opportunity Knocks in Real Estate

Whether things are busy or not, real estate professionals, developers, and investors should always be on the lookout for future opportunities. A prime example is the announcement by Aldi Food Stores that it plans to add 800 new stores within the next five years.

I'm sure some people react by wanting to ask me how this is an opportunity for them. To me, it's easy, whether you work residential or commercial. Either way, Aldi has done a lot of helpful market research for you!

Suppose you work residential. Chances are you know the demographics and income levels that Aldi Stores most commonly attract. If you buy and/or sell homes to that group, you should stay on top of this story to find out if there will be a new store within your farm area. Or, new stores in areas where residents of your farm area might want to move to.

Homes near the location will have the amenity of being close to a brand new store! Might be an advantage to help sell. Could be very helpful for a potential buyer also looking at homes which do not have easy proximity to a brand new grocery store.

 

 

If you work commercial, you now have research showing the viability of a major retailer preparing to serve specific communities. Those communities have room and want new construction. Aldi Store customers need other products and services. There may be adjacent space for lease or for sale.

 

This is where obtaining market research plays such as important role. Those that wait until ground has broken on a new store typically are told "We already have someone who.....". That "someone" did their homework ahead of time.

 

No matter how busy you are (or are not), there should always be time for market research. If you are too busy working with your clients, keep in mind that my office specializes in market research and marketing! 

https://www.prnewswire.com/news-releases/americas-low-price-leader-aldi-expands-footprint-nationwide-with-800-new-stores-by-the-end-of-2028-302082226.html

One Experience Can Shape Many

Working with and for real estate professionals and investors for more than 30 years was not my original plan. My career actually began in radio broadcasting, which included studio work as well as covering events and doing live reports. When a report on the air is supposed to be 45 seconds long, it must be 45 seconds long and include important information for the audience at the time. I also went on to teach radio broadcasting part-time for seven semesters at Columbia College Chicago. 

Many years ago, some friends of mine got on the schedule to do a vendor presentation, along with two other companies. Because of my public speaking and presentation experience, they hired me to perform their presentation. We were slotted to go 2nd of the three. The guy presenting first had what I thought to be a more amazing product than what I had to talk about, and it worried me. However, I also noticed how he seemed insecure and was choppy during his presentation.

When it came to be my turn next, I got up and smoothly delivered my two minute presentation, making every sales point that was necessary, and then handled a couple of follow up questions with ease. Next, the 3rd presenter did not have as good of a product or presentation.

The result? Even though I didn’t think I was representing the best product, my guys got the sale! That moment showed me how much of a difference the presentation could make, regardless of the product or service.

 

 

Those radio broadcasting skills continue to help me when it comes to presenting properties, creating videos, hosting live educational webinars and seminars, and demonstrating the products and services my team and I now represent.

Meanwhile, I continue to see investors, agents, brokers, developers, builders, and others affiliated with real estate, miss out on potential deals and transactions because they don’t have the solid presentation and communication skills that often make the difference between winning and losing.

Over the years, I have occasionally helped my marketing clients with their presentation skills and have made an even more positive difference in their lives.

Now, as Real Estate Media Coach, I am available to specifically help real estate professionals and investors to increase their presentation skills. My having both the knowledge and experience from marketing campaigns for everything from multi-million dollar commercial developments to starter condos in low income areas combines with my communications coaching abilities.

I can work with individuals as well as large groups, including one-on-one time with each student. 

 

http://RealEstateMediaCoach.com  

How Presentation Mistakes Harm Your Credibility

If you are presenting a property, whether to industry colleagues, investors, or potential buyers/tenants, it helps to consider both the material you are presenting along with how you are presenting it. Messing up one can mess up both. 

 

 

Here is an example I witnessed a couple years ago. I was watching a broker presenting a single family home listing to a group consisting of investors and fellow brokers. Along with a slide presentation, he was giving details of the property, and happened to mention that “This could also be a good rental property”. 

One of the audience members raised his hand and asked, “What is the monthly rental rate in that area?”. That was a very reasonable question, considering that the broker doing the presentation failed to mention it. However, the broker’s answer was “I’m not sure”.

My first reaction was to make a note to not do business with that broker. If he was going to mention that it “could be a good rental”, he should have been ready with facts to support his statement. No matter how good his slide presentation was to that point, his answer to an obvious question shot down his credibility. 

 

This broker should have done the research on current rents nearby while preparing his presentation. If the numbers were favorable, they should have been presented early in the presentation. If not favorable, don’t mention the possibility while giving the presentation. He could very well have lost out on a couple of potential buyers by not having information which is important to them.

The oral presentation skills of this broker were solid. There is more to it than being a good presenter, even when those skills are on display. Those that have the combination of a solid presentation AND are solid at public speaking and presenting to others have a much better chance to succeed. 

 

If you present properties and/or real estate opportunities to potential buyers, sellers, tenants, investors, lenders, and so on, you can be better at compiling each presentation and utilizing improved public speaking skills and strategies within 30 minutes. Schedule your time today at 

 

http://RealEstateMediaCoach.com . 

Public Speaking For Real Estate Professionals

As of late 2023 there are more than 1.5 million members of the National Association of Realtors. That number does not include thousands of commercial real estate brokers. Simultaneously, there are more than 2.4 million registered commercial real estate businesses in the U.S. 

Add in the number of home builders and commercial developers, and we have more than 5 million people involved with presenting and public speaking specific to the real estate community.

Many, if not the majority, have not yet had any training in public speaking or  making group presentations. Those are some of the challenges they face, which can hinder them from securing a listing or sale, costing them valuable revenue.

 

Real estate professionals and others in the industry are often faced with presenting a property to a potential buyer, tenant, and/or investor. It might be to an individual, or to a family or group. Although part of the presentation can be planned and rehearsed, dealing with reactions and questions is not. However, they are all part of the public speaking process. 

The same goes when making a Listing Presentation or promoting a listing to groups of agents. The Real Estate Media Coach brings such a big advantage to clients.

Real estate professionals and industry professionals can master their public speaking techniques which help overcome the natural fear. They do so from a real estate expert, which is an important combination.

One-on-one 60 minute individual sessions include plenty of actual practice time under the watchful eye (and ear) of the Real Estate Media Coach. Practicing comes after a review of strategies for gaining confidence and pacing as a speaker, whether to groups or individuals. 

The Real Estate Media Coach is also available for group and corporate presentations, which include a presentation of valuable tips and strategies to the entire group. The group session is followed by scheduled one-on-one time with each attendee to benefit their individual needs and skills.

Visit www.RealEstateMediaCoach.com for details. 

How To Determine Fix & Flip, Buy & Hold, Wholesale.....

Real estate investors have many decisions to make, whether just starting out or seasoned, when it comes to acquiring properties. Some look to wholesale (in states where it is allowed), some to “Fix and Flip”, and others to buy and hold for long term gains. Each of those possibilities have their own pros and cons, along with a number of investors who are successful at each of them. 

 

Each category requires a great deal of research leading up to finding potential investment opportunities. The amount of time needed is also a factor in determining the choice in working with a property. When wholesaling, the money is made at the closing with no further responsibility for the subject property. If doing a Fix and Flip, the likelihood is for weeks or months of repairs and upgrades to increase the value. For a “buy and hold”, the objective is long-term revenue, whether from leasing or tax advantages. 

 

 

 Some real estate investors make the mistake of being focused on only one of these possibilities while doing their research. Consequently, they might be missing out on a solid investment. It is understandable for a real estate investor to think that they do not have the bandwidth to, for example, engage in a costly and longtime upgrade despite the eventual profit potential.  

 

The point is that a real estate investor should be doing his or her research looking for a solid investment. If he/she cannot work with it as intended, chances are there is another buyer (or partner) out there that would love to get in on a solid deal. Some investors are private lenders and/or cash buyers that look for a good deal. Even the best researcher isn’t able to find deals throughout the region, let alone the entire country. 

 

For this reason, it is helpful to research properties in specific areas based on criteria used by other investors. Whether you are working with a real estate agent or not, you can do this research yourself. Comps on what properties are currently selling for are not enough to determine the strength of a potential investment. 

 

By visiting PropertyChoiceDirect.com, you can learn how to access data about investment properties around the country, based on your investing criteria. You can compare against what other investors and buyers have recently done within the same community. For example, you can see recent successful fix and flips within a neighborhood so you can more easily compare.  

 

If the numbers work for you, it is easy to work with any real estate agent you choose. But if the numbers are good but don’t work for you, you have something to offer to another investor or buyer and get paid even more for your efforts. 

 

You can participate month to month with no contract required. Details at PropertyChoiceDirect.com.

How To Do Your Own Comps For Potential Flips

Real estate investors looking to flip or wholesale properties need “additional” local comps to guide them toward a decision as to whether to purchase each property they consider. Real estate agents are typically only concerned with pricing properties which are “ready to go”, or close to it. However, a flipper or wholesaler is not going to purchase a property for anywhere near the current market value.  

 

Here is an example. Suppose there is a single-family home on a block with neighboring homes selling in the $200,000 range. This property, however, needs a lot of renovation and/or repair, which the current owner is not willing or able to finance. As a real estate investor, you need much more than the comps showing the value of good condition neighboring homes.  

 

 

 

While considering, or upon making a conditional offer, you need to be able to inspect the subject property. This is whether you do so yourself and/or hire a home inspector. Your goal is to determine the cost of bringing the property up to market value. There are costs to consider, ranging from fixtures (roof, furnace, electrical work) to labor (deep cleaning, painting, etc.) to renovation. You also need to consider the profit margin you expect to justify your purchase and the time and expense to bring to market value. 

 

Before doing repairs and/or upgrades to the property for resale, you need to consider roughly $15,000 for commissions and closing costs. You also plan to come out with between $20,000 and $25,000 profit when all is said and done. If you acquire the property for $140,000, it leaves you with a maximum of $20,000 to $25,000 to spend on the rehab. 

 

The $140,000 amount is based on being roughly 70% of market value. However, an investor needs to know if offering $140,000 or less is viable. Most real estate agents base the buyer comps on the $200,000 market value even though an investor will not offer anywhere close.  

 

This is one of the reasons why PropertyChoiceDirect.com offers analytic software which provides local comps based on investor criteria. You can search most neighborhoods and see recently sold nearby properties which were purchased by investors. In addition, you can then compare against “market value” comps to get a much clearer picture on your potential investment.  

 

You can do all of this whether working with a real estate agent or not, and there are no restrictions whatsoever as to which agent you can work with. The software accesses current and updated data and is available month to month with no contract required. Newer investors can access the video training along with regularly scheduled live webinars as part of their membership. 

 

Real estate agents and brokers can also utilize this software for helping their investor clients to acquire more properties. Details at PropertyChoiceDirect.com .

How To Find Investment Properties While Working With Your Agent of Choice

As a real estate investor, especially for one to four units (including single family), it is helpful to understand the role that a real estate agent plays in helping you. Typically, the role is much different from the home buyers they serve. Although in both situations the buyer wants the lowest possible price, the criteria differs for an investor.   

 

Someone buying a home for themselves or their family to live in relies on a real estate agent to meet their needs. Considerations include price, but may also include a school district, proximity to work, transportation, and/or shopping, and specific amenities. On the other hand, a real estate investor might not be limited to a specific neighborhood or be as concerned about the current condition of the property.  

 

Some real estate agents and brokerages attempt to serve investors by offering a list of local investment properties. In many instances, the agent(s) doing so understand how to compile such lists because they are investors themselves. This means that he, she, or they get first crack at potential investment properties within the area(s) they serve.  

 

 

Consequently, the investors they “serve” receive lists of properties which they (agent) have, in effect, already rejected for themselves. In addition, there are some real estate brokers selling software which is designed to analyze potential investment deals. Worse yet, some brokers require investors, already paying to utilize the software, to then engage their brokerage to complete any of the transactions they have “analyzed”. In other words, they expect investors to pay to analyze lists of already rejected investment properties, and when they find one to purchase, then pay that same brokerage a commission on the purchase transaction.  

 

Software to help real estate investors identify and analyze investment property opportunities in local areas and around the country is extremely helpful. However, it is even more beneficial for real estate investing when not affiliated with a specific agent or brokerage in any way. As a result, users can work with any agent or broker they choose, even if only to handle the negotiations and subsequent purchase. At the same time, they get a wider range of properties and more thorough investment data to consider. The cost is often less per month than some local providers and brokerages charge while including their financial and geographic restrictions. 

 

In addition, users have access to scheduled updated training along with hours of training videos. 

 

Details are available at http://PropertyChoiceDirect.com