Sustainability - But Not If It Costs More?

There are enough challenges for real estate investors, developers, and investors these days. Along comes another one which would, at the start, impact some municipalities in Missouri, but we all know how ideas spread.

Some municipalities have taken careful steps over the past few years to encourage sustainable real estate. Columbia MO added a building code six years ago to include more energy efficient elements to real estate developments including windows, water heaters, and insulation. The code also added tougher requirements for ventilation. This type of action is becoming more common throughout the country.

Real estate developers and contractors know better than anyone how supply chain concerns and rising material costs are causing construction delays, cancellations, and rising costs. The Missouri House (political - not a residence) is looking to reduce costs for construction. So what did they do?

Earlier this week they approved Bill 839 which could be going to the Senate within the next 30 days. This Bill would, believe it or not, prevent municipalities within Missouri from having green or sustainable standards in building codes IF they would increase the cost of a building.

Note our example of Columbia which has rules in place to encourage sustainable building. Consequently, if Bill 839 passes, Missouri would wind up behind other states (that do not pass anything similar) in terms of energy efficiency. This measure would impact tenants and homeowners in the long run.

Some developers and investors take advantage of current tax incentives and purchase rebates by going with energy efficient products such as new appliances. If they can’t find them in Missouri, they may go elsewhere. If other states were to adopt this, the reduction in energy efficient buildings could have a long-term negative impact.

I’m sure there are investors and developers looking at opportunities in Missouri right now who are not aware of this situation. It’s a situation which could become a reality within a few weeks. Regardless of what you or I think about Bill 839, it adds consideration toward potential investing or selling scenarios. It also adds to the reason you need to have a research person or team to keep you aware of important information not specific to a property.

 

  

 

https://www.columbiamissourian.com/news/local/missouri-bill-could-force-columbia-to-abandon-sustainable-building-code-requirements/article_094b34f6-f17a-11ef-a74a-f7178590981d.html

 

 

 

How Much of a Factor Should "Year Over Year" Be?

As involved as I am with performing and examining research related to residential and commercial real estate, I also know not to overdo it with some of the published information. Year vs. year trends is one area I think is overused, especially on the residential real estate side. I have said over the past 30 years that I have yet to meet a home buyer who purchased based on monthly or yearly local market trends. The individual or family situation, location, and price play a much bigger role than how many people bought homes months or years ago. 

The article below compares residential inventory and home sales for February over the past eight years in an attempt to establish a trend. I’m not seeing the importance of considering this data. 

Here are some of my reasons. The year 2020 had the distinction of being the year of the pandemic, which killed or changed thousands of deals. As things cleared up in 2021 and consumers adjusted to changes like working from home, what took place in 2020 had a strong influence on 2021. In 2024, property owners in parts of Florida and North Carolina suffered significant damage from two major hurricanes. Over the next few months we will see how Southern California real estate is impacted (well beyond just the month of February) from the major wildfires of early 2025.

At the same time, mortgage rates have varied from low to higher than recent years, which has shown an impact on real estate transactions. Playing the waiting game often means that “deals” available while rates are high won’t still be there if and when rates drop.

What it all means is that many conditions may change significantly by February 2026, and the reasons to buy, hold, or sell real estate could have nothing to do with current and recent trends.

How you interpret research, statistics, and trends can play an important role in decisions and transactions you and your team are considering or implementing. Although having research in your favor is extremely beneficial, it needs to be the right research.

 

 

 

https://www.resiclubanalytics.com/p/housing-market-inventory-state-update-march-2025

 

 

 

How Will Office Space To Apartment Space Impact Housing?

It’s interesting to note how big cities are addressing their housing problems, but at this point in time there is no other situation like the Los Angeles area. The article below tells us about converting some of the unused office space to apartments. Meanwhile, as noted previously in this space, legislation took effect at the start of 2025 for California to allow ADUs (Additional Dwelling Unit) which includes Los Angeles County. These actions are each independent of the results of the recent wildfires which destroyed hundreds of houses and forced thousands of tenants to vacate and find other housing. 

 

Other states such as Washington have recently enabled ADUs to encourage more housing becoming available in dense areas whether office space is being converted or not. 

There are no assurances that having two different means of creating more housing in the Los Angeles area will bring an increase in rental tenants or help to combat rising costs. Additional competition for tenants and buyers might be a good thing, especially for potential tenants. 

One consequence of all this is how real estate brokers, lenders, contractors, and investors need to be aware of how all of this is shaping up for the months and years to come. Anticipating opportunities is an important part of the strategy, whether for the job or possible results of a short-term or long-term investment.

Meanwhile, we have an increase in the number of people moving out of California. It’s to the point that California is now among the states “losing” the most residents, with housing prices being a big reason why. Creating more housing may be a solution, but it may not happen in time to keep thousands more current residents in place. Newly created housing, whether through new construction or conversion, may or may not be priced within reach for “new” residents or to keep displaced residents in California.

How this plays out in California, especially in the Los Angeles area, could impact other major cities both inside and outside of California over the next few years. All of this is still another reason to continue to research market trends along with pending legislation and local zoning changes. I’m constantly reminding my clients and trusted connections about making sure they know “more” than whoever they are negotiating against about possible advantages.

Having a research person or team on your side is even more important than it was a year ago. Let’s connect!

 

 

 

https://www.rentcafe.com/blog/rental-market/market-snapshots/adaptive-reuse-office-to-apartments-2025/ 

 

 

A Bill Designed To Block Single-Family Rentals

I spend a percentage of my time researching news stories and proposals along with keeping up with market trends around the country. Doing so keeps my clients and myself up to date and made aware of opportunities and situations to anticipate and potentially deal with.

 

It seems that many real estate professionals and investors are not aware of many matters in other areas which could impact their business. House Bill 18 in Kentucky is a significant example. If something passes statewide in one place, you can bet that other states and large municipalities will be monitoring the results.

 

This Bill would limit the growth of adding multi-family properties during a time in which many parts of the country are experiencing a housing shortage. It also limits the ability for single-family landlords to rent their properties. While I understand that the industry wants more people to experience advantages of home ownership, there is also the reality that at this point in time fewer and fewer people can realistically afford it.

 

If this measure passes in Kentucky, real estate investors will be forced to look elsewhere, while there are zero assurances that more consumers would be able to suddenly purchase their own home. Meanwhile, an investor or developer unaware of this possibility could be making a huge mistake by investing prior to the passing of House Bill 18. 

 

Let my team and me guide you and your team with important research.

 

https://lexingtonky.news/2025/02/25/kentucky-bill-adds-hurdle-for-multi-family-housing-amid-supply-shortage/

 

 

Find The Less Taxing Properties

Researching a real estate opportunity needs to include factors which are not specific to the property or opportunity. There are many situations where an inconvenience to the buyer (or tenant) has nothing to do with the property. As a landlord, seller, or developer, you want to have all of the stars aligning beyond those which are within your control.

 

The findings in the below linked article are a great example, especially when it comes to relocation properties. It's a list showing that people that are retiring or choosing a relocation destination strongly consider tax consequences. Statistics show that the majority of states people are moving to have either no state income tax or a flat tax. That situation can make a difference of thousands of dollars annually to an individual or family. And, that situation has zero bearing on the quality of the property being considered.

 

In other words, you could have the more attractive property and/or amenities by far, but you may not have as good of a tax situation as a less attractive property. The "less attractive" property may win out because the buyer includes tax consequences.

 

When performing research on real estate investing, buying, or selling opportunities, you need to consider more than the thousands of square feet surrounding the property. If considering in one of the states with no state income tax, your potential buyers, tenants, or investors have thousands more reasons to choose your opportunity.

 

It's all part of doing your research, which my team and I can do for you, or train you on how to do it yourself.

 

 

https://www.illinoispolicy.org/4-of-5-top-states-americans-moving-to-have-flat-or-no-income-tax/ 

Regulatory Costs Impacing Builders and Buyers

The recent Congressional hearings about residential permits brought to mind a statistic which was hidden away by the pandemic and its impact. According to the NAHB (National Association of Home Builders) findings back in 2021, regulatory costs at the federal, state, and municipal levels accounted for 24% of the final price of a new home built for sale. 

To put that in perspective, regulatory costs account for $96,000 on the purchase of a $400,000 single-family home. Here we are in 2025 with increased concerns about supply chain issues and rising material costs, especially with lumber and steel. Builders and developers are being backed into a corner, and that's without proposed legislation to attempt to combat investors (such as our Feb. 25,2025 column).

 

 

Based on the above paragraph alone, there are more challenges now than there were a few years ago for adding new housing in areas where there is a clear need. Over the years, one of the elements I have stressed with my marketing clients is to examine zoning options for parcels and communities they are considering. Keep in mind that some of the regulatory fees go for home building, which may or may not be enforced for a commercial build. It might be time to consider a wider variety of cost options when it comes to making important decisions. 

 

It was helpful to see that the NAHB was well represented at the recent Congressional hearing. If it can be made easier for builders, the housing problem could be solved much faster, and be more affordable for all concerned.

 

https://www.nahb.org/news-and-economics/press-releases/2025/02/home-builders-tell-congress-how-permitting-roadblocks-raise-housing-costs

 

 

 

A New Tax Won't Fix Home Prices

Although I understand the need to take action about the rising costs of housing, I also understand the need for a more practical solution than creating a slight inconvenience for institutional investors. Per the below article, there is a Bill in Ohio which, if it passes, would add a significant tax for investors with 50 or more homes in the State.

 

Supply chain issues, rising costs of materials, and supply vs. demand are what drive up housing costs, whether purchase or rental. It would be different if rents were at their current level and there were plenty of vacancies. That is not the case. Having 50 different landlords in the same area for 50 properties does not mean that rents would drop or that the cost to purchase would be any less.

 

 

Limiting the number of properties an institutional investor can own is far from being the best solution. Ohio politicians should be glad that some investors elect to own that many properties. Without them, there might not be as large of a supply.

 

Current institutional investors will continue to have choices even if the Bill to regulate them passes in Ohio. If a group currently owns 54 homes, they will sell off the five which are the least productive. They can form separate LLCs with more partners and/or shell accounts. One more possibility is the number of other states which do NOT have anything like this restriction in place. If they can't invest in bulk in Ohio, they have plenty of other states to choose from. If they go elsewhere, they take away millions of dollars of revenue for Ohio.

 

I'm not here to discuss the merits of the proposed Bill. To me, the importance of this proposal is to factor into research for upcoming opportunities. If I am looking into bulk investing in single-family in Ohio, I know to keep the number under 50, and to consider investing any additional dollars elsewhere. Even if this Bill does not pass, worrying about its status would not slow down my operation. 

 

A big part of having a research person or team is being aware of changes which could directly impact future revenue. Let's talk about planning for your next real estate success!

 

https://www.13abc.com/2025/02/20/new-tax-proposed-ohio-landlords-who-own-50-houses-per-county/ 

When Not Having Good Research Costs Millions

The need for research in real estate extends beyond residential and commercial properties and opportunities. I'm often reminding my clients and connections about the need to research costs and pricing. Sometimes I talk about searching for 'backup' vendors. There are thousands and sometimes millions of dollars on the line. I want to know that if a vendor of mine screws up that I have someone else at my fingertips I can reach out to with confidence.

 

However, doing research should not stop upon finding whatever opportunity or change you are looking for. Be ready for if and when things don't go as planned.

 

The article linked below tells the story of a state hospital in Hawaii which was built and opened less than four years ago. Its roof already needs replacing to help with leaks and other structural problems which have caused millions of dollars of emergency funds to be put in place.

 

 

This tells me that not enough research went toward finding the original contractors, vendors, or materials used in the project. However, my point here is that much improved research methods need to be in place to plan these repairs. Make this building an example for other state agencies to follow.

 

If I owned or if it was my job to operate a multi-million dollar property, I would be researching and finding out everything I could about this hospital facility. I would want to know which providers were involved in the original construction and then see what changes are made as the multi-million dollar repairs are taking place. I need to be sure that my people don't make the same mistakes, and that "my" property is as safe as possible from having problems like the ones at the hospital facility.

 

There is no telling how much spending a few thousand dollars on a research person or team could have saved the State of Hawaii, investors, and vendors. This is valuable information no matter where you and your property are located!

 

 

https://www.civilbeat.org/2025/02/leaks-and-mold-at-the-4-year-old-state-hospital-will-cost-millions-to-fix/

 

 

You Don't Have To Wait

Do you wait, or innovate when it comes to real estate? 

 

Some people "wait", whether it's for residential or commercial. They wait for rates to drop, buildings to be constructed, and for their surroundings to show a trend. Waiting is not always the best solution. By the time rates drop, the "deals" out there now won't be there anymore. Even worse is when "someone else" beats you to it.

 

Your goal should be to have that "someone else" be you. The below linked article is another example of someone seeing something that is not currently there. To me, that's the first thing you need to do. See what others don't. The next thing is to research to find what it takes to make it happen. If your findings check the boxes they need to, add the resources you need, and do what it takes to make it happen.

 

The subject of the story below is about a proposal to demolish an old warehouse and construct a 60 room boutique hotel. There is nothing like this for miles of the chosen area. If and when this project happens, it means more work for architects, designers, contractors, brokers, and investors, just to name a few. However, there is an even more important element to this story. The town where this could happen currently has a population of less than 500 people. Even a 60 room hotel is going to need employees and staff. The area will need additional housing, restaurants, and other services. 

My hunch is that the "owner" did not want this story getting out there. He and his team could be involved with plans to own the town, in a matter of speaking. This plan did not depend on waiting on rates or watching market trends. It's about taking an idea and then seeing it through to the point of becoming feasible.

 

It starts with an idea, but it happens because of market research. Let's discuss your idea. What don't you see that is there?

 

https://www.cbsnews.com/sacramento/news/town-of-hood-riverfront-hotel-plans/

 

 

Should You Really Own A Piece of The Rockford?

The "It's the supply! vs. the "It's the demand" argument about residential property prices often reminds me of the era of the "Tastes great!" and "Less Filling" commercials from years ago. When performing the important job of researching for real estate, the emphasis needs to be on both factors. It's the great debate of whether supply influences demand vs. demand influencing the supply.

 

There might not ever be a better of example of why this is so important than the current situation in Rockford IL. Having spent the majority of my life within two hours of Rockford, I'll just say that it is not a place I have ever spent any more time than necessary when there. Although there has been noteworthy improvement over recent years, the city is far from having been 'transformed' into a vibrant and rising area.

 

Yet, if you research by "demand", Rockford is a hot spot for home buyers. However, if your research takes you to population trends for the area, you either find them between 'steady' and 'decreased' over the past 10 years. That's where 'supply' comes in. 

 

The number of blue collar jobs and comparably lower priced homes is currently the big appeal. However, it's obvious, upon research, that there are not enough single-family homes to house the current population. There is no "rising" population to be found.

 

If you only look at demand, you would think that Rockford is an attractive place to build single-family housing. Some developers and investors only look at demand. Here is one case where that could be a mistake. Supply chain and construction costs are rising. It takes months and maybe longer to build a development or cluster of houses. By that time, the local "demand" may not even be as strong as it supposedly is at this time.

 

 

 

You can perform partial research, or you can make guesses on your own. My team and I are ready to provide you with (or train you to do your own) customized research to guide you toward future real estate success!

 

 

https://www.illinoispolicy.org/rockford-declared-hottest-housing-market-in-u-s-but-low-supply-is-real-story/

 

 

Finding Real Estate Opportunities Within and Beyond Indiana

There are still plenty of people who think that performing research for real estate is "restricted" to data about specific properties and the surrounding area(s). I tell my marketing clients that those who operate that way are the people I want on the other side of the negotiating table. The key to market research is to establish a clear opportunity before acquiring data on specific properties. Planning for the long haul brings long-term results. It's the old baseball analogy that it doesn't matter how many times you swing at pitches as long as you get on base.

 

The (below linked) analysis of residential real estate in Indiana offers several opportunities for real estate developers, investors, and professionals. There is clear evidence of why more residential housing is needed with demographic evidence to support it. Some analysts see the ratio of rural to urban throughout Indiana as being a negative when they think about the number of potential buyers or tenants. They seem to have forgotten the amount of land within 30 minutes of an urban area. There are plenty of people that would be fine with a 20 minute commute while saving a few hundred dollars on their mortgage and having more outdoor living space to enjoy.

 

 

These comments are not part of a campaign to attract business for Indiana. (Nor am I here to discourage.) The point is that, once you have solid research, you can uncover opportunities in many more places than you can without having it. There may be five other places with similar opportunities to what Indiana has. It would be nice to have the choice of which one(s) are best for your situation. Your research doesn't need to start with "Oh, here is a nice parcel or house!". You should already know exactly why you are looking at that parcel. 

 

A few hundred dollars on a research person or team (or training) can bring in thousands of dollars as soon as the research comes to fruition. Let's connect!

 

https://indianacapitalchronicle.com/2025/02/17/a-real-estate-perspective-in-the-hoosier-property-tax-debate/

The State of Moving Out

When it comes to updated lists of where consumers are moving to and from, you expect to find California on top of one of them. However, the latest list, courtesy of one of the national moving companies, shows California as the top state from which people are LEAVING. Keep in mind that this list is based on 2024 and was before the recent disastrous fires which destroyed several communities. The list was also compiled during the time that Florida experienced two hurricanes which brought significant damage to many of its cities.

 

California managed to "out move" Illinois, a (seemingly) perennial leader in people moving away due to higher and rising property taxes, crime, and challenging weather conditions. This data comes just as a new ordinance in Los Angeles County (which was in place to begin in January prior to the fire events) creates opportunities for ADUs (additional dwelling units) on residential properties to address the housing shortage.

 

Some real estate investors and professionals take a quick glance at these lists and move on. My thinking is to take this research as a "start" and drill down. It is important to determine (as best possible) and understand the reasons why consumers move out of a state and into another one. Being the "most chosen" state to move to by the most people tells me that it's not because of a single employment information.

 

Real estate professionals in "selling" states need to be aware that people are looking to escape just as they need to be aware of a tougher sell for the properties they are looking to move. Investors need to be on top of motivation, whether to sell and get the heck out of town or what relocation buyers are attracted to. These decisions also impact commercial properties. Cities in the Carolinas, Tennessee, Georgia, and Idaho may have a need for more commercial properties. That includes shopping, restaurants, entertainment, and so on. 

 

As I continue to stress to my clients and connections, planning ahead and having the right data to support your decisions is what makes the difference for long term planning. No matter what state you are in.

 

 

https://www.northamerican.com/migration-map  

The Florida Example Impacting Real Estate Decisions

We have growing concerns over how things will shape out on the residential market in Florida, and what it means for landlords and investors. Housing and rental costs are becoming more of a factor in and well beyond Florida. However, the recent hurricanes and the resulting damage are only starting to have an impact on rising insurance costs. The political climate, supply chain issues, and rising materials costs, are adding to the mix.

 

Some people are choosing to leave while we have the expected influx of people relocating entirely to Florida to begin retirement and/or escape the cold weather in the northern part of the country. Now we are seeing that weather patterns are having an impact on decisions being made, especially when it comes to new construction or rebuilding.

 

These factors all add to the need for solid research before making important decisions. Sometimes it's based on the goals of the home buyer, landlord, or investor. It is quite likely that the same opportunity could be a "pass" for one person and a solid one for the next person.

 

The article linked below gives some input as to how some people are approaching this. Just like with anywhere else, having the best possible and most current research can make or break a real estate opportunity. If you haven't already, you can put my 30+ years of experience on your team, whether to perform the research or train you on how to perform your own!

 

https://www.wuft.org/business-news/2025-02-12/will-climate-change-dampen-demand-for-florida-residential-real-estate  

Just Who Is Renting Instead of Buying?

Knowing as much as possible about your target audience can be very helpful when weighing a real estate transaction opportunity. Knowing who would buy or rent "there" is important. An obvious example is needing to plan for specific amenities for senior housing. Additional plans include proximity to at least one pharmacy, medical center, and fitness center. These elements are important because you know what your audience of potential buyers or tenants expects while considering your property.

 

Similar thought goes into student housing and "first-time" buyers or tenants while considering the wants and needs of the target audience. What about the age groups in between? What are their needs?

 

 

I'm often amazed at how little consideration some of the developers, investors, and brokers I perform research and marketing services for overlook this. Elements like proximity to the commuter train station, the school district, and recreational amenities are applied in some cases, but not as many as they should.

 

Some valuable research data continues to be ignored when considering a build, acquisition, or sale of single-family or multi-family. The more I think about it, the more that could be extended to office and warehouse space when landlords need to attract "the right" employees.

 

Real estate investors and professionals need to face the fact that renters of single-family and multi-family are no longer who you think they are. There are millions more people that can no longer afford a down payment or are now in a situation where they are afraid to commit to long-term mortgage payments. The 'typical' renter has changed in recent years, although not all of the marketing strategy has. 

It's a fact that the median age of renters has increased by 9 years since the pandemic. Even my best clients were surprised to learn that the median renters age is now 42. You aren't just renting to students and blue collar workers anymore. Let my team and me help you with your marketing, and perhaps your buying/selling, strategies. Don't wait until you get older. :)

 

 

https://fortune.com/article/rent-prices-increasing-for-single-family-homes-zillow-report/  

Planning For Profit In Five Years

Thinking ahead can be a key to success in real estate, especially when you can get involved early in the game. Your next big future opportunity could be nearby, or it could be hundreds of miles away. The biggest challenge is uncovering it.

 

Here is another example, which happens to be five years away. I'm sure some people are no longer reading this, moving on thinking that "I need to worry about this week - not five years from now". (I'm thinking that five years from now they will still be worried about 'this' week.) What I see is five years to create a significant income opportunity.

 

We have two major university health systems combining forces in the already growing North Carolina Triangle area. Per the story linked below, they are planning a full-service children's hospital for an area which, obviously, has a growing need.

 

Meanwhile, there are possibilities for every sector of the real estate community. My years of working with real estate developers and builders, investors and investor groups, agents and brokers, and non-conventional lenders has me well aware of what can happen.

 

 

Although investors are not likely participants in the actual hospital grounds, there is going to be a need for hospitality, short-term rentals, employee housing, and nearby restaurants, shopping, and transportation. Consequently, commercial and residential brokers can be helping their clients with land acquisition, home buyers, and development opportunities. Lenders and private money ventures will have plenty of possibilities. Medical practices may want to consider a new or satellite location. The list goes on.

 

Whether you are nearby in North Carolina or across the country, I see plans like this and think of specific clients my team and I could help. "Next week", or sooner, is the time to discuss this with me!

 

 

https://corporate.dukehealth.org/news/unc-health-duke-health-partner-build-ncs-first-stand-alone-childrens-hospital  

Consider The Numbers Which Come After The Transaction

I continue to preach to my marketing and coaching clients about how there is even more to consider than the numbers when it comes to making the important decision about whether or not to pursue a specific property transaction. Supply chain and material cost uncertainty has some real estate developers reconsidering new projects whether property acquisition costs go up or down.

 

A property deal might look solid upon running the numbers. However, my emphasis is turning to what could happen upon completing the acquisition or sale. It is possible that the reason you are getting a favorable deal is that the seller knows that upcoming construction or renovation needs are the real reason for selling. This situation, and projections for rising costs, make it essential to more effectively plan and anticipate prior to committing to an acquisition. Suppose you are acquiring a property and projecting $50,000 for renovations within the first two years. Those same renovations may wind up costing $90,000 based on pending material and construction price increases. 

 

 

Using this example, you need to look into whether or not the "additional" $40,000 cost still makes this a good deal for you. It may or may not. Sometimes this involves additional market research and data, while other times it is simply a matter of costs to consider and the eventual impact on the bottom line. When it is a client or associate of mine, I like to go with both because I make it a point to explore any and all possible outcomes.

 

This part of the process, which I call "Running the Future Numbers" should come after running the numbers and upon completing your due diligence. If new or additional construction or renovations would be needed in the foreseeable future, projecting your costs is becoming even more important.

 

 

https://www.bdcnetwork.com/home/news/55266288/slower-construction-spending-rate-foreseen-for-next-four-years 

How Palm Springs Airport Expansion Could Help You Take Flight

There are times when a commercial real estate project is based on the importance of keeping up with the competition. The tourist industry contributes an estimated $9 billion annually in the California Coachella Valley, and the popularity of the music festivals would indicate that trend will continue if not increase. 

The story that the Palm Springs Airport is up for a "multi-billion dollar" upgrade after all these years is due to competition. Ontario International Airport, less than one hour away from Palm Springs, has plans to expand its international flight capability, which could cut in to airlines from Canada and other countries which currently serve Palm Springs directly. LAX, roughly two hours away when not in Los Angeles rush hour, is also expanding its international capacity.

 

 

The Palm Springs area could lose out on potentially millions of dollars of travel and lodging costs if they continue to rely on more distant facilities to bring in guests. The need to expand is as much a "defensive" strategy as it is to grow local commerce.

 

For real estate developers, investors, brokers, and contractors, this possibility for Palm Springs creates opportunity. This expansion would lead to the need for more ground transportation, rental car facilities, and nearby restaurants, hotels, and other amenities. 

 

Like I always preach, the sooner you become aware of opportunities, the sooner you have your research in place and can get a stake in the game ahead of any competitors. My team and I are poised to help you in your quest.

 

It's all about staying ahead. 

 

https://calmatters.org/economy/2025/02/palm-springs-airport-upgrade/ 

Bringing Home The Business

The growing number of real estate conversions is resulting in less office space being available in many parts of the country. Some regions continue to have less office space in use as employees continue to work remotely and companies are looking to save money on unused space.

 

Meanwhile, some corporations are demanding more time in an office environment, causing some employees to reevaluate their work situation. Some people now insist on being able to work from home, even if it means a job or role change. However, many people who work at home do not have, can't afford, and would not be provided with technology which would add to their job role. Examples are high end printers, scanners, high capacity computers or tablets, and telecommunications equipment. 

Some luxury apartment and condo buildings have a fitness center with access to residents and owners. In some cases, the ground floor of the building is commercial and has a fitness center which is available free or at a significant discount to residents. 

This begs the question of why these buildings have to add a "Business Center". Much like many hotels which serve business travelers, having a business center within a residential setting could make a huge difference, and incentive, for people working from home. The "center" could function like a co-working setting, whether paid for by an employer or the resident, giving access to everything they need, and perhaps use of a conference room.

 

Let's collaborate on how we could make this happen in place ripe for such a concept. And, take a look at the research and input in the linked article:

 

 

https://www.commercialsearch.com/news/coworking-industry-trends-to-keep-an-eye-on/

Reaching The Life of Luxury (Homes)

A real estate professional or investor can have a ton of fresh research, but the big question is how they utilize it. Another example is the latest data on the number of luxury homes purchased in certain parts of the country over the past year.

Locations like Orange County CA, Palm Beach FL, and Manhattan (NYC) continue to perform well in luxury sales, with Dallas TX leading the way of a surge in Texas luxury buying.

There are several ways real estate investors can make this data actionable. However, investors that do not have a research person or team may be adding to the risk of deciding. Targeting a location with a recent increase in luxury sales does not necessarily reflect that the demand level is still high. Additional research would help in terms of monitoring the continuing demand, or lack thereof.

If and when the demand appears to be strong, there are choices and decisions ahead. At the moment, new builds may face added challenges with supply chain issues and rising costs adding to the risk. Instead of new builds, it might be worth considering upgrading existing homes to make them more valuable. An example is how some multi-family owners renovate while getting rid of lower rent tenants to be able to generate higher paying tenants upon adding new and more valuable amenities. 

 

 

Taking a similar formula for single-family, an investor or owner of a home would do well to compare amenities with some nearby homes which are now worth $1,000,000 or more. If there is a way to, for example, spend less than $50,000 to give an $800,000 home the look and feel of a million dollar one, you would have an opportunity for success. 

Researching to find existing opportunities vs. looking for a new build should be another option for investors to consider. Agents and brokers should also be looking for opportunities for potential sellers along with investors in their databases.

Although it is possible that what you have been doing has always worked, you might be missing out by not exploring additional possibilities. I’m happy to help you and your team to uncover new opportunities!

 

https://www.wfaa.com/article/money/dallas-luxury-home-sales-rise-texas/287-400e2ef7-5898-4a29-aed6-8ac1f265e035

 

The Cost of Building A House

One of the challenges of performing research, especially when real estate appraisals are involved, is coming up with an accurate determination of a cost breakdown.Quite often, findings are based on current costs vs. those in existence when the property was built or renovated.

The article linked below gives a helpful breakdown of recent costs of the elements of a house built within the past two years. This data can be helpful for homeowners considering selling and buying elsewhere, contractors for bidding out, and investors and developers for planning. Items like appliances, flooring, and fixtures can be adjusted based on the neighborhood and condition of surrounding homes. 

On the other hand, supply chain issues and concerns about tariffs could wreak havoc upon construction costs in the foreseeable future. It is good to have guidelines.

https://chicagoagentmagazine.com/2025/01/24/nahb-how-much-to-build-a-new-home-2024/

An Updated Policy On Buying or Investing

It is an understandable fear that insurance rates in states like California and Florida will continue to skyrocket and make the cost of housing even higher. This is all in addition to the impact recent major disasters continue to have between hurricanes, floods, and fires.

As more people abandon their location because of a disaster, those that choose to remain may have to bear the brunt of even more expenses. I know of one broker in Phoenix that sold 11 houses to buyers coming from Southern California within the past 10 days. Rumors of insurance companies trying to pull out of states and being forced to stay in place continue.

 

However, insurance and construction cost challenges have gone further than people realize in plenty of other states besides those impacted by disasters. Investors and potential relocations will likely be surprised to learn that insurance costs are rising or have risen to costs near to what Florida and California have become. (The article linked below shows a national map.)

Home insurance and property insurance costs, especially where flood insurance is involved, are quickly becoming part of what an investor or potential home buyer may consider. Obviously, the value and potential of a property are extremely important considerations for potential investors and buyers. However, insurance costs, property taxes, and the potential for natural disasters are quickly becoming more significant considerations.

Those considerations need time and attention when it comes to researching the opportunity. My team and I can help in either of two ways. I can show you how to do your own research, or we can perform the needed research for you, allowing you to continue to focus on current business. May I help you choose?

 

https://www.siliconvalley.com/2025/01/23/californias-home-insurance-prices-set-to-soar/

 

 

 

 

Dealing With Transaction Problems When It's Too Late

The story (linked below) about unexpected problems resulting from the purchase of a long vacant property through a county may not seem like anything that impacts your day. However, it should serve as a reminder to those involved in real estate transactions about having every piece of information you could possibly have on your side before it’s too late.

Although it appears the couple involved in the mess did their homework to get to this point, their thinking that an important matter would be completed by an independent third party could wind up costing them a deal. 

There are lessons to be learned for a lot of people. First, I don’t know whether or not this possible issue (an undetected County fee against the previous owner) was addressed in the title search. Whether it was or was not, I would think there would be issues to address with the title company involved. 

An attorney on behalf of the (potential) sellers should either be able to get an action in place during the brief open time frame. It may be a movement to delay the time frame and/or preserve the escrow period subject to the outcome on this matter. 

 

 

 

 

Investors should note the County in which this took place, to keep in mind when it comes to future decisions. Those that do or would consider investing in Kern County (California) properties would do well to set reminders to track the outcome of this matter over the coming weeks and months. If and when the matter is resolved to their satisfaction, it could be a positive to invest in Kern County vs. other counties where something like this could still happen.

Meanwhile, if and when the couple trying to sell the property gets this matter resolved in a timely fashion and completes the sale, that couple may have an excellent income opportunity to act as a research consultant to other local investors.

Whatever the result, it shows the importance of doing thorough due diligence, especially on a non-traditional property investment. If you still do not think you and your team needs a research person or team on your side, please read the below linked article, and contact my office. I’ll help make sure this doesn’t happen to you.