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   

 

 

 

How Much Impact Could The Move-In Fees Legislation in NYC Move The Needle?

There are many real estate professionals, developers, and investors not in the New York City area that think that what happens there does not impact their business. While that is true in many instances, there is the need to be aware of what "could" happen and how it could impact a current real estate investment or a pending or "under consideration" transaction in other parts of the country.

 

The story (linked below) about the current fight against legislation impacting rental agreements and move-in fees in New York is one example. If it happens in NYC, you can bet that other municipalities are going to look for advantages for their city. By lowering the costs for tenants, it gains favor for the politicians behind it. In some situations, added fees are an important part of the income plan for a property. If those 'added fees' are reduced or eliminated, it could impact your bottom line (or those of a valued client).

 

This is why it is important to be aware of what could happen, even if it's months or years away. Knowing you could lose X% of your annual income because of a change in regulations could be a reason to sell or make another change. However, my point in bringing this up is that it could be a reason to acquire a property.

 

Finding out about new legislation, regulations, or proposals before your competition does could be the edge you and your team needs to make a deal happen in your favor.

 

No matter how "busy" your schedule is right now, there is every reason to continue to include time to research to protect your current clients and properties along with what "could" happen down the road which would benefit you for the long run.

 

https://nypost.com/2025/05/30/us-news/nyc-broker-fee-law-which-protects-tenants-from-costs-challenged-by-real-estate-agents-in-11th-hour-push/

 

 

The Bridge To More Real Estate Opportunities

It is easy for a real estate professional, investor, developer, or GC to see the story about ongoing lawsuits from last year's Key Bridge collapse in Maryland and move along to the next story. To me, it is just as easy to miss out on potential opportunities by not following important stories.

 

What does a bridge collapse in Maryland have to do with real estate? 

 

Although a fair and reasonable question, my answer is there are likely to be plenty of opportunities down the road. If you don't get your "foot in the door", the door of opportunity remains closed. Many business located in the collapsed bridge area, whether related to the port or not, were forced to close or remain open but are struggling. Millions of dollars are being spent to refurbish the area along with reopening that bridge.

 

When the Key Bridge reopens, it will significantly increase business and revenue in the surrounding area. If businesses closed, it means that industrial buildings and property may be available NOW for a lower price than it would have been two years ago. Development opportunities, which include restaurants and services, are going to start popping up, and the prices are not likely to drop as the rebuild completes.

 

The nearby Chesapeake Bay Bridge was expected to carry more than 300,000 vehicles over the recent Memorial Day weekend because of the additional traffic from not having the Key Bridge.

 

Meanwhile, the (below linked) update also points out that the Chesapeake Bay Bridge is also vulnerable to risk, and how much infrastructure repair is needed just in Maryland. As this matter becomes more urgent and begins to happen, the results will be plenty of work for General Contractors, while real estate brokers, investors, and developers will want to look at the many opportunities this work will eventually create.

 

You can continue to pass on these stories, worry about what is on your plate right now, and be missing out on your next big profit and project. Or, you can connect with me and explore the possibilities.

 

https://www.cbsnews.com/baltimore/news/key-bridge-lawsuits-maryland-francis-dali-collapse/

 

 

 

Taking A Bite Out of Research For Real Estate Opportunities

There are still many people involved in real estate that only consider real estate specific data and research when it comes to potential transactions and investments. However, proposals are most effective when considerations beyond just the real estate elements are included. Many news stories and research findings could be used to make a case toward real estate related decisions.

 

The story, linked below, about how 74 counties in Illinois currently have either a partial or full shortage of dentists, is a prime example. People won't move or make investing decisions based on dental coverage. However, there are situations in which this information could be used to the advantage of a real estate investor, broker, or developer. 

 

Look at data like this as an opportunity to be creative to your own advantage. Suppose you have a commercial property to sell in one of the (many) areas which has a shortage of dentists. This data gives you the base for a proposal showing the need for a dental practice facility or medical center and how the subject property could solve that problem and put the buyer into a big advantage for quickly growing their client base. If you have a home to sell, look at marketing the home (or homes) to students at a dental school. For that matter, maybe a commercial property would be ideal for hosting a dental school. It would cost significantly less for students to live in a rural community than in a big city which currently hosts dental training. 

 

My point is about how watching or reading business news stories could make a significant difference in your ability to get to the closing table. Let my team and me help create custom strategies for you and your team while you continue with today's tasks.

 

https://www.illinoispolicy.org/illinois-can-ease-dentist-shortage-by-passing-student-dental-license-reform/

 

 

Fresh Data The Way You Like It

Part of why I enjoy performing real estate research is the amount of conflicting data I come up over the course of a week. It serves as a reminder that you might be able to find enough research to support your "side" of a real estate deal or situation even though it appears to be a less popular view.

 

Here is another example. There has been a lot written about how more and more grown children are staying with parents or family members until their late 20s or even longer. The reasons are generally because of rising housing costs and those "just starting out" needing to save their money.

 

Now we have fresh research showing that millennials are the ones buying the most single-family homes:

 

https://www.apartmentlist.com/research/millennial-homeownership-2025

 

My role is not to take sides. However, if you are looking to convince others that more millennials are buying homes, you have information you could use. Without researching to find helpful info (or, in this case, having me to do it for you), you might not get a client, listing, or sale.

 

I'm happy to show you what else you are missing out on if you don't have a research person or team on your side.

 

 

Is Affordable Housing Affordable On Federal Land?

Will it be worth buying land from the government for the purpose of creating affordable housing? Now that an amendment has passed allowing the sale of federally owned land in Nevada and Utah for this purpose, we are going to find out.

 

Although these land sales will be limited to areas near cities like Reno. Las Vegas, and St. George, there will still be plenty of questions which, from here, appear to heighten the risks. Since these parcels are "further out" from those cities, chances are there is little to no infrastructure like what would be needed for affordable housing properties. Chances are that right now there are few, if any, roads leading to the sites which will be made available. Transportation, shopping, and entertainment venues will be further away until or unless allowances are made for creating those considerations nearby. Doing so would likely take years of time and additional legislation.

 

Another factor, often overlooked in a preliminary property situation, is how bringing affordable homes to people in these areas would likely take two or more years to happen. By that time, many feel that something will "have to give" in the overall real estate market. It is possible that the bubble could burst on home prices between now and when the first properties become available. Construction which needs new infrastructure, streets, and utilities typically costs more and takes longer. Being built with affordable housing consideration may add constraints. What happens if the estimated rental income at the time of groundbreaking turns out to be too high upon completion?

 

Since this is federal land, the municipalities may not be able to add tax and/or financial incentives to the extent they normally would. 

 

This is where thinking out of the box could come in handy. Instead of waiting on the parameters of federal land development, right now could be a good time to seek property near these communities which is privately owned but not developed. Chances are there would be fewer challenges and a faster path to development. 

 

As a developer, investor, broker, or contractor, the goal is to find and take full advantage of opportunities. Many people would see this federal land possibility, raise the same questions I did, and move on. If you research the possibility, you might find a more viable solution. It's one of the ways my team and I can help you and your team succeed.

 

https://www.npr.org/2025/05/07/g-s1-64760/house-republicans-approve-amendment-authorizing-the-sale-of-federal-lands

 

 

Why Are Church Properties in Detroit Now More Valuable?

The ability of taking one solid idea and having it lead to another is one of the best things about being involved in real estate. Many people benefit in many ways from a single action. What is even better is that you don't have to be the one that comes up with a brilliant idea. Putting yourself into a situation where you can learn ideas and build on them to benefit yourself and your team can be as valuable as originating a concept.

 

A great example of this is the (below linked) story about a group that has secured funding for the idea of creating situations which create revenue through business use for churches. It's a situation that helps get people off the streets and spreads the entrepreneurial style.

 

What does this have to do with real estate?

 

To me this has plenty to do with real estate. At this moment, there are a number of church properties for sale, while others are abandoned because a church moved to a better facility or went under. There are properties which could be converted into church (or other religious use) facilities and used for this purpose. Consider that a group just received $1.2 million in funding to implement the concept in Detroit, it's obvious that other people believe in this path.

 

Real estate investors in Detroit aware of this program likely realize that not many people are aware of this new program for small businesses. Knowing this, and finding actual or existing church properties could start them off with a new and viable opportunity. Brokers have a way to expand businesses looking to rent commercial property. Contractors could benefit by getting work renovating church interiors to support business use. The list goes on. 

 

One thing that stands out to me is that there is nothing to say this idea, including the ability to secure seven-figures of funding, is limited to Detroit. There is a lot to be said about getting the jump on an idea and being first. 

 

Let's discuss.

 

https://www.dbusiness.com/hustle-and-muscle-articles/churchspace-closes-1-2m-funding-round-moves-to-detroit/

 

 

Why Short-Term Rentals May Be Coming Up Short

I continue to talk with new investors that think short-term rentals is their best path for getting started in real estate despite the many challenges already in place. With short-term rentals, more than any other facet of real estate, there are so many factors which go above and beyond the property and the numbers.

 

Unfortunately, new research brings another challenge for those already involved with short-term rentals, especially in communities which cater to international travelers. Miami, Los Angeles, San Francisco, and NYC are among the more prominent examples. Fresh research shows the expected significant losses from international travelers not coming to the U.S.

 

Much of the hotel industry has already, and wisely, been on the attack, resulting in more "staycation" advertising and marketing campaigns to the public. However, short-term rental owners do not have that luxury. Advertising venues like Air BNB and VRBO will continue to generate revenue from communities which cater to domestic travel and not necessarily need to increase their campaign spending.

 

This research is a major example of why gathering ongoing research is so important in real estate. It could be a reason for an owner to sell or seek a long-term tenants rather than deal with the added challenges of a smaller audience of potential tenants. Meanwhile, it is possible that an individual or group with strong connections to continuing international travelers could pick up a bargain by purchasing a short-term rental property at this time.

 

There is more to it than making the numbers on the property work.

 

https://www.hospitalitynet.org/news/4127190.html

 

 

 

How Preparing A Real Estate Project Is Like Planning A Restaurant

Operating a restaurant business has plenty of similarities to investing in real estate, and that is without investing specifically in a restaurant property. There is so much more than the concept when you consider operating costs, employees, the menu, and the competition.

 

However, like with real estate, so much depends upon market conditions. Research shows how, in many communities, the economy has impacted the number of times many people are eating out. Some restaurants, especially chains, have integrated pick-ups into their primary operation. Others, however, were not geared toward having pick-up. This means that the menu offered is now only a part of the operation. Customers lose the experience of being there when they come in, grab their bag, and leave.

 

Real estate developing and investing is becoming the same way. The goal should be the solutions that a property or investment provides. Knowing who would buy or rent and their preferences is an important part to the potential for success.

 

Whether for a restaurant or a real estate project, the numbers need to work. However, these days, so does the methodology. I help create and enhance business plans. Keep in mind that investors and decision makers are not only looking at your proposal. Let's make your plan come to life.

 

https://www.nebraskanewsservice.net/news/a-changing-consumer-market-rising-food-cost-and-delivery-apps-how-the-restaurant-industry-is/article_5123650f-3e97-4da2-a825-c42afbb2e40a.html 

 

 

International Investors Are Not Stopping.......

One strategy for real estate investors is to gauge what other investors are, and are not, doing in terms of investing trends. Many, including myself, find it interesting that international investors continue to look at U.S. opportunities while many domestic investors are hesitant at this point in time.

 

It seems like I'm telling at least one valued client or connection every business day that "the opportunities there right now won't be there if and when rates or market conditions change". If loan rates are high right now, but the numbers work, you go in to a deal knowing that you can refinance when rates go down enough to make it worthwhile. You might even be able to cash out by that time. 

 

Newer trends are emerging, such as a greater emphasis on infrastructure, and the expanding need for data center properties. (I already have one client that knew to have some opportunities for data centers available for hungry buyers right now instead of "waiting to see what would happen".) While there are some legitimate concerns in the current market place, what it should mean is the need to expand researching to identify the "upcoming" real estate opportunities sooner instead of waiting until after the fact and facing fierce competition.

 

https://www.afire.org/survey/pulse14425/

 

 

 

Office To Apartment Conversions Start With Location

In real estate, if you are going to perform research on a concept, you need to go all in. The purpose is not to prove your theory. It is to gather enough data and information to be able to make an informed and unbiased decision. I recently had a coaching client tell me he did not need to research converting office space to apartments any further because he saw where doing so is not cost effective. Upon my query, he told me his finding was based on data for the large city closest to where he lives.

Although office space conversion may not be feasible in his area of concentration, his answer forced me to remind him that his research was not complete. My first question to him was “What is your intention?” Upon his silence, I expanded on my response. “What was your goal? Is it to find a location to do an office conversion? Or is it to find a good real estate investment within your local area?”

The answers to those questions go a long way in determining the next step. Those staying on top of the office space to residential trend know that some cities have solid opportunities for profit while others most definitely do not. It all depends on where you are looking, and that’s the point. 

Los Angeles needs the housing, but bureaucracy continues to make doing office to residential conversions too much of a challenge to adjust within the current climate. In Stamford, CT, developers are creating conversions even before legislators can keep up because there is so much demand and plenty of opportunities. In Pittsburgh, the city offers incentives and projects are affordable, but the demand for more housing is not enough to support the effort. Houston brings logistical concerns, such as office buildings not having enough parking sufficient for a large residential complex. 

There are plenty of situations where these conversions are appealing to all concerned, but it takes thorough research to find them. Meanwhile, there are plenty of cities with solid real estate development and investment opportunities, which may or may not involve conversions. Establishing clear goals is necessary before your research person or team begins to investigate. My client is another example of why you need a research person or team to help you make important choices.

 

https://propmodo.com/how-cities-are-turning-empty-offices-into-housing-and-what-it-really-takes-to-make-it-work/ 

 

 

A Taxing Commentary On How States Attract Businesses

Some states and municipalities clearly look at the short-term while others look to the long-term when it comes to generating revenue. It is not about geographic location, since there does not appear to be any regional trends.

 

The below linked article shows how corporate taxes have risen in Illinois at the same time there have been significant reductions in other states. Illinois is among the states that wants to generate revenue "today" from businesses located there, seemingly with little interest in attracting more companies to relocate or originate there.

 

Other states, including North Carolina, have reduced corporate taxes to encourage business growth. To compare, NC's decision has created 46 times more jobs than Illinois within the same time frame. More jobs also means more individual taxpayers supporting the state and local economies. 

 

I connect this to real estate developers and investors I talk with that tell me they are "too busy now to worry about a new project". What happens is that once their current "big" project either completes or falls through, THEN they begin to market and look for what's next.

 

Your best strategy is to include short-term AND long-term plans and goals and act upon them simultaneously. If you are not doing so currently, let's connect. There is no need to lose out on revenue just because your current project has ended.

 

https://www.illinoispolicy.org/corporate-income-taxes-have-stifled-illinois-pandemic-recovery/

 

Why A Multi-Million Dollar Build Is Halted In Progress

Research and tracking should not stop once a real estate project is underway. There are situations where changes can be made on the fly, even when millions of dollars are involved. It's easy to "set it and forget it", but I can't emphasize how often staying on top of the situation can make a huge impact on your project.

 

At this time, a multi-million dollar multi-family construction project in Jersey City is on hold even though it is underway. The reason is not because of rising construction costs, supply chain issues, labor challenges, financing concerns, or weather.  It seems the city recently adjusted its allowances for affordable housing, which took place after this project was planned.

 

Because of these changes, the structure could now be 20 stories higher! The developer obviously feels it is worth waiting on approval from the city and revising the construction plans, materials acquisition, and its timetable for completion because of the significant additional income possibilities an approval would create.

 

I'm not saying that we should see numerous projects stopped based on the potential for additions and changes. If the developer of this project does not get approval, or if the numbers for adding do not add up, this delay could prove costly for the short term.

 

However, if approval is granted by Jersey City and the additional 20 stories are built, the long-term additional gain will make these delays extremely worthwhile. It will have been a brilliant decision to do so. Yet, if the developer was not on top of the new allowances to create more housing and went ahead with the intended project, they would have lost a significant long-term revenue opportunity. One more time. Signing on the dotted line should not mean that research and due diligence should stop.

 

https://jerseydigs.com/imperial-tower-jersey-city-expansion  

How A Little Rock Could Be A Big Opportunity

Seeing that approval has been granted to a "mystery developer" for a $1 billion data center brings several elements to my attention. These are things for a real estate developer, investor, broker, or contractor to be aware of while researching and planning ahead.

 

I continue to preach the importance of pursuing the "next" project(s) no matter how busy things are at the current moment. There is not one source of information that could help you toward your next big deal. That's the point. The deal in the article linked below is planned for Little Rock, AR. I'm sure some people have stopped reading this upon seeing it's about Little Rock. However, it is really not.

 

The big takeaways should be the significant incentives this "mystery" developer is able to take advantage of. Little Rock wants this data center, with reasons ranging from the need to keep up with other large municipalities to the 50+ jobs it will create once completed.  

 

This developer gets a 65% property tax reduction over 30 years! In addition, the tax break threshold was reduced, for this project, from $500 million to $100 million. 

 

Little Rock is doing a great job of attracting something that will greatly benefit the municipality for years to come by doing what it takes to make it work for all concerned. However, Little Rock can't be the only municipality that would make these concessions. Having "proof" that such measures can be done to make a huge real estate development beneficial for all concerned is a great start for where opportunities and proposals come from.

 

Those that bypassed the story "because it is Little Rock" might be missing out on a huge opportunity for the future.

 

 

https://www.datacenterdynamics.com/en/news/mystery-developer-plans-1bn-data-center-in-little-rock-arkansas/