Thursday, February 6, 2025

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/

Monday, February 3, 2025

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



 

Wednesday, January 29, 2025

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/



Tuesday, January 28, 2025

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/

 

 

 



 

Monday, January 27, 2025

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.

Friday, January 24, 2025

Reach Them While They "Save Up"

I have been saying for years that one overlooked aspect of marketing a property, whether residential or commercial, is gearing a listing or rental toward who the most likely potential tenant would be. For example, a home for sale in a "hip" district catering to millennials does not need copy which appeals to seniors. Some brokers have told me they don't to potentially eliminate "anyone" from showing an interest in a property or opportunity. However, they maybe "eliminating" the ideal candidate by not properly appealing to them.

 

It boils down to knowing who you are "talking to" with your marketing materials and content. We are currently in a period where college graduates are not leaving the nest, as in continuing to or moving back in at "home" with parents and family members. This is often to "save up" for their own place, whether purchase or rental. However, based on my conversations with brokers around the country, this growing trend continues to be ignored from a marketing standpoint. 

 


 

 

To me, that creates still more opportunities in real estate. People still living "at home" crave privacy and independence. They desire ways to not have to "save up" as much money as they think they do. But the growth in the number of people staying in this situation shows they are not being "reached". Meanwhile, the 26 to 34 age group is highly active on social media.

 

Before you move on, know that the number of people that moved "back home" is now in the millions! 

 

If you or your team has a "build-to-rent", low down payment, seller financing, and other such opportunities, you might not realize that you have a large target audience to go after. Get your foot in the door. Having a research person or team on your side helps create business for you for months or years to come. As a Fractional Research Person for brokers, developers, and investors, I may already have some tricks up my sleeve that could significantly increase your long-term income. Let's connect!

 

Meanwhile, here are the staggering statistics about the number of people who are "at home". Something to think about while you "save up" to hear from them years from now.

 

https://www.realestatenews.com/2025/01/21/millions-of-young-and-not-so-young-adults-still-live-at-home

 

 

Wednesday, January 22, 2025

Not Knowing Everything About The Property Could "Drain" You

It’s the things you need to be aware of when considering acquiring or selling a property that can factor into your decision as much as whether or not the numbers work. Knowing about the current and future infrastructure and utilities can keep a deal from going sour and bring on challenges for owners. 


The below linked article gives the latest about concerns over the water supply in Florida. Recent major wildfires in Southern California remind us how quickly a water supply status could change. Such events have nothing to do with the current condition of a property. 

 

 


Some readers will see the article below and think “It doesn’t matter to me since I’m not in Florida”. I think the readers should think “I need to know about the water supply for my property(ies) or those I am considering”. When a municipality needs to improve or add infrastructure, somebody helps pay for it. Sometimes there is a special assessment and/or a property tax increase. Such an event likely impacts the profit potential or margins on a pending or future deal. There are instances where a landlord gets stuck with related expenses like needing to update wiring, or upgrade an electrical system. 


The way to find out or make sure is by doing your research before it’s too late. If you don’t have a research person or team, you could make a deal which is less favorable than originally thought or not have a property ready to get max value in return for. Let my team and me show you how much of a difference continued research will make!

 

https://www.bdcnetwork.com/home/news/55261204/floridas-water-supply-strained-by-development-overexploitation-of-groundwater

 

 

Tuesday, January 21, 2025

Make The List, But Check It Twice Before Investing or Keeping

When it comes to multi-family, supply and demand is an important factor for planning whether you have properties or are considering investing in an area. Creating opportunities for success in real estate needs plenty of research as much as needing for the numbers to work in your favor. 


Your property doesn’t automatically attract more tenants because you have solid gold door knobs to enter the laundry room. Location and price are important, but not always reflective of the demand.


There is a lot to be said for keeping up with large employers, proposed development, zoning changes, and municipal actions. Anticipating events, projects, and changes can make a huge difference in profit potential. It starts with research.

 

 


The below linked article provides reasons for considering certain cities as good multi-family locations. Or does it?


Look at the #1 and #2 cities on their list. (I had nothing to do with this list.) Minneapolis is #1, based on the noteworthy increase in page views and saved searches over the previous year. However, Atlanta, at #2, showed a decline in views over the previous year even though the source of the list still claims there is demand.


To put it another way, if it were me or for a client of mine, I would not have Atlanta so high on the list. If you are looking to make a choice, it strongly helps to use the same basis for comparison. This list does not appear to be based on the same formula throughout.


Let’s work together to develop your own formula for continued success in real estate!

 

https://www.bdcnetwork.com/home/news/55261768/10-cities-to-watch-in-2025-for-multifamily-rental-activity 

 

Friday, January 17, 2025

Still More Developing Opportunities

Announcements like the one linked below can be as significant for real estate developers, investors, and brokers as they are for contractors. Billions (with a B) of dollars in changes also mean plenty of upcoming opportunities.

 

Adding or improving infrastructure makes the nearby area more attractive for new businesses along with, in many cases, residential developers or rehabbers. I'm sure some will say, "But these things are years away" and move on. Those are not the people I want to work with.

 

The rest of us understand the significance. Improving transportation facilities makes it easier and better for consumers to come to the location. Restaurants, retail, employment, and schools are the reasons. New office buildings, restaurants, stores, and schools typically take years to create and construct. Researching, financing, designing, permitting, construction, and hours of preparation are parts of the entire process. 

 


 

 

It's the same with planning and implementing the individual projects which make up these billion (with a B) dollar expenditures to make the rest happen. The Massachusetts project featured below is to take place "over the next 10 years".

 

Having a research person or team helping you could result in thousands and perhaps millions of dollars in revenue "over the next 10 years". That vacant piece of land "near the old bridge" might be available for a lot less than it would be years from now when things are built up. Your building could already be constructed and ready to take on numerous valued clients.

 

Think of this like the potential home buyers "waiting for rates to come down" while expecting the same deals to still be there if and when they do. 

 

What research can I help you with?

 

https://www.roadsbridges.com/funding/news/55261108/massachusetts-gov-healey-unveils-8-billion-transportation-plan 

 

 

Wednesday, January 15, 2025

Don't Be Broken By Rent Price Fixing

As concerns over rent price fixing continue to grow, it brings a new set of questions regarding future impact for landlords and real estate investors. If an investor sees that he/she/they cannot increase rents in years to come in a certain area, that investor may simply decide to buy elsewhere, while potential sellers may be left hanging.

 

Decisions like this can be crucial to long-term success, and are another reason why you need to perform research about more than the numbers when considering the purchase or sale of an investment property.

 

Keeping up with municipal zoning changes and proposals is quickly becoming part of the plan. Attending zoning meetings, whether you participate or not, can be a way to access information before others do which could impact or help control an important decision you need to make.

 


 

 

Some people will see the below linked story and think "It's New York, so it does not impact (your city)." They need to know that New York is not the only place considering this type of action. As the song says, you got to know when to hold 'em, know when to fold 'em.

 

My team and I are ready to either perform important research on your behalf, or coach you on the best methods for you and your team to implement. Let's connect!

 

https://citylimits.org/2025/01/14/hochul-looks-to-ban-algorithm-based-rent-price-fixing-in-new-york/ 

Monday, January 13, 2025

Potential Impact of Municipal Rental Rules On Multi-Family

Some real estate investors and multi-family landlords think that having all of the numbers is everything they need when it comes to making important decisions about buying, selling, developing, or renovating. Obviously, the numbers have to work in your favor, whether for a short or long-term plan. However, as one who spends hours creating successful opportunities often based on thorough research, I'm here to tell you there is always more to consider than statistics.

 

The below linked article sheds light on the difference between "finding tenants" and "finding the right tenants" for a rental property, especially when for the long term. It also raises questions about concerns and needs of potential tenants which are not my place to comment on. However, the idea of addressing circumstances for handling problems with tenants at the municipal level is one which needs to be in the discussion.

 


 

 I can see why a municipality would want something to hold over a landlord if and when a property brings multiple problems to the police and other public service entities. However, having those conditions in place might also discourage developers and investors from wanting to enter certain neighborhoods. Not having enough "fresh" investing could, in the long run, add to greater deterioration of a community which ultimately hurts the residents.

 

These are things which should be brought to the attention of potential investors, in addition to how the numbers work, when considering development or acquisition. Still another reason why not having a research person or team could cost you more in the long run than having one on your side. Let's connect!

 

 

https://www.startribune.com/anoka-doj-crime-free-housing-ordinance-repealed/601203308