Thursday, November 14, 2024

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/

Wednesday, November 13, 2024

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/





Tuesday, November 12, 2024

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

 


 

 

Monday, November 11, 2024

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/

 

 

Friday, November 8, 2024

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 

Thursday, November 7, 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 

 


 

Monday, March 11, 2024

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



Saturday, February 17, 2024

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  

Wednesday, February 14, 2024

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