When A Broker Pitch Gets Taxing

 

 

I’m often amazed about how many agents and brokers I talk with that are not aware of new tax laws and regulations. The below linked article is another example, including thorough research showing the impact it is expected to have on different age groups. Being able to show a potential seller or buyer how making a transaction could bring a significant tax benefit seems like motivation to me.

A big part of real estate marketing is adapting scenarios to your client or potential client. They don’t have to feel like a number from mass marketing when there are ways to benefit from a specific situation they are in or could be in. Expanding the capital gains exclusion could make it “easier” on taxes and finances for certain homeowners to sell their property without major tax consequences. 

We have to be honest and understand that it is likely that the majority of homeowners won’t pay any attention to this legislation if and when it passes. That’s where an alert broker should come in. Chances are you know the age range and other things about people within your database. If you can show them the difference it would make by selling (or possibly buying) under the new tax regulations, you, at the very least, plant a seed with them. Undoing a single reason why the home owner hasn’t sold to this point that could change should be enough to allow you future engagement with them. 

Another example of how a little bit of research could lead to a lot of gain for your real estate business!

 

https://taxpolicycenter.org/taxvox/will-expanding-capital-gains-exclusion-unlock-housing-supply-evidence-who-benefits  

 

 

Making Buyers See The Demand

 

What I consider to be the most overlooked aspect of real estate marketing has just come across in the high level world of the Las Vegas economy. As the below linked article confirms, a leading CEO is taking issue with the perception of a “demise” being perceived by travelers. It appears to be the same trap which I contend that real estate professionals continue to put themselves into.

The CEO’s point is that despite the inflated prices for a lot of the major entertainment and recreation in Vegas, people continue to pay it because they see the value of the experience. Even though there may be fewer potential patrons than past years, the demand continues to be met. People see that a venue such as The Sphere sells out for major acts and prestigious golf courses are booked even at more than $500 for a round of golf. Concerts and a round of golf typically cost far less in other cities around the country. However, the experience in Las Vegas appears to justify the higher prices.

Real estate associations and brokerages COULD be taking this approach, but, as I have noticed over the years, fail to do so. A huge part of marketing is in the presentation. You don’t have to publish every fact related to a topic, when highlighting certain ones gets the point across.

My real estate example is every time I read a real estate association’s published report that “Home sales in (name of city) are down 5.6% since last year, with 842 homes selling in January”. A huge percentage of the audience reading that info interprets that (name of city) must not be as desirable if fewer buyers are moving there. 

If you disagree, read what the CEO of MGM had to say in the article below. He sees things the same way.

However, if the real estate association report merely stated that “842 homes sold during January only, the coldest month of the year in (name of city)!”, a bigger percentage of the audience would perceive an incredible demand. It wouldn’t matter to them that 950 homes sold there during the previous January. They could add in how appealing the market is if they can point out that mortgage rates were the same or higher during the most recent month!

It should be simple. If home sales are up from the previous reporting period, say it. If they are not, only issue the positive stat. This is the difference between marketing and advertising. I love working with valued clients, students, and connections on making their farm area or target audience look even better than the rest. 

 https://cdcgaming.com/mgm-ceo-says-narrative-about-las-vegas-demise-needs-to-stop/ 

 

 

It Didn't Even Sell At Auction

 

 

The failure of a rundown housing project in New Orleans to sell at auction, apparently because the expected minimum bid was too high, brings out some interesting points. As the below linked article shows, some officials are hopeful that a non-profit or organization with aspirations will take over. It will be interesting to see what effort is made for that to happen. 

Now that it is obvious that the property is overpriced, it is not likely a non-profit or civic organization could justify the expense, which would not include the costs for repairs. The interesting part is what officials will (or won’t) do to potentially make a purchase happen. Would they reduce the price by one million or more dollars to facilitate a sale?

Or, will they hang on to the property in hopes that the value would somehow rise, along with the real estate market, and generate the hoped for revenue?

There is the matter of the $11 million loan default which created this situation. Obviously, the lender and others involved need to recoup as much revenue as possible. However, there is also the reality of today’s real estate market. This seems like a situation from which numerous parties need to work together to create a more realistic opportunity. 

They have tenants in place living in less than ideal conditions, while the struggles negatively impact the surrounding neighborhood. It could be an opportunity for an organization or developer to be a hero.

Maybe it’s “cash for keys” and renovating or perhaps demolishing and starting over. Perhaps it is  making a refinance arrangement which would make assuming the debt affordable to a developer or GC which could turn the property around. If entities work together, something like that could happen and, even if it takes years, could solve the problems. The property could sit there and the struggle could continue if not. An entity willing to get involved could be “first in” for a significant opportunity. It takes the ability to do so AND the willingness to get it done. Worth monitoring to see what happens.

 

https://www.fox8live.com/2026/01/30/new-orleans-easts-troubled-willows-apartments-fail-sell-auction-with-5m-starting-price/  

 

 

When Smaller Is Better In Real Estate

 

 

Consumers have varied opinions about brand name home builders around the country when it comes to buying. Some prefer new construction and working with an experienced builder with the amenities of a development is a location which works for them. The challenges confronting potential home buyers at the moment is making it rough for some home builders to sell their projects. Many feel it is because of down payments becoming unaffordable even to those that can afford the monthly payments.

A lot of credit goes to D.R. Horton, whether you like the quality of their builds or not. As the below linked article demonstrates, they have made an adjustment to their marketing strategy which appears to have made a positive difference for them.

Their strategy of reducing the size of the homes they build allows them to lower the prices and appeal to more potential buyers. It seems to be working.

I love their way of thinking. Instead of waiting out the market or becoming less aggressive about new projects, they found a way to make what they do work. We need more builders, developers, and investors willing to look into every possibility and be receptive to a change in strategy. Being an established home builder is one thing, but adapting in the face of adversity is another. If Horton can adjust its strategy and increase success, so can other real estate entities.Doing so could make the difference between success and failure.

 

https://www.housingwire.com/articles/dr-horton-affordability-strategy/ 

 

When Real Estate Collaboration Is Key

 

 

I have often told my associates about how I learn as much from my students, whether real estate investors or agents, than they do from me. Some of what I learn is very helpful for others, while some reinforces the need for the strategies I help them to form and the need to execute a complete plan.

A simple example is when investors tell me they “work on flips”. There are times when I see him or her so focused on a flip that they might miss out on a solid deal which could be a rental or could be flipped without performing a lot of rehab, even when needed. They think they need to “simply” formulate a single process and stick with it.

As the below linked article explains, there are some entities which clearly understand the value of having a plan or approach. Leaders in downtown Kansas City are an excellent example. While some municipalities and economic development groups merely “seek” investors, the K.C. group has formulated a solid plan which targets parts of the downtown area.

They are holding meetings to receive input from people involved and not directly involved in the project. More importantly, they have defined roles for developers, contractors, investors, and others that would be involved. Having the “clear blueprint” will truly create a community in which everyone works together while various groups and individuals each benefit. 

It is an excellent reminder to find the right role for the right people, which is important even on an individual basis. An individual flipper would do well to work with others looking to provide a similar path. Perhaps they could share in redeveloping a group of properties instead of a single property “here and there”. Doing so might be able to save each of them money, such as being able to purchase materials in bulk to divide among a group of investors and eventually being able to market multiple opportunities together.

Another set of eyes on the project may also help lead to being “first in” for other opportunities, whether for the specific project under review or a future opportunity!

 

https://rebusinessonline.com/how-to-balance-growth-and-heritage-in-kansas-citys-legacy-neighborhoods/