Get Started Investing in Vacant Lots

WEBINAR:

Get Started Making Passive Income By Investing In Quarter-Acre Vacant Lots In Up-And-Coming Resort Communities.

Discover How to INVEST In Vacant Lots — A Fast, EASY and Safe Way To 10x Your Investments — Land Can Beat Out Stocks & Mutual Funds!

In our latest webinar our host, Michael Poggi, will introduce an exclusive Land Investment Strategy, which shows our readers how they can invest In 1/4″ Acre Buildable lots In The Fastest-Growing resort communities In the country.

This opportunity may outperform other opportunities on The Market… and the best part of all is that investors can can get started with Very Little Money Down.

In this training, Micheal will teach our readers his land investment strategy & secrets that will DOMINATE any other investment you make this year.

Did you know that you can use your current IRA or old 401(k) plan to invest in vacant lots by moving it to a self-directed IRA with no penalty?

Michael is going to teach you these secrets on how to get ahead exponentially faster by using some or all of your IRA or 401(k) plan funds using the land investment strategies and secrets. Be sure to register today.

This Real Estate Investment Strategy offers a non-correlated risk and is a headache-free, passive income — with no tenants.

GROW LIKE A PRO 2023:
HIDDEN GROWTH OPPORTUNITIES TO BOOST YOUR BOTTOMLINE AND BRAND

Learn “the best of the best” strategies and techniques for supercharged growth and high success from our expert at this power-packed
LIVE VIRTUAL WORKSHOP.

This will be a LIVE WEBINAR about Earning Passive Income With Vacant Lots on July 20th, 2023 @ 7:00 – 8:30 PM EST.

How Raising Your Business Credit Score Can Help Your Company

By Vista Capital Solutions

You probably remember using your personal credit lines to take out the initial loans needed to open your business. Before starting a company, you don’t have any business credit. Even after a few years, it is possible that your company still won’t have established business credit. If you don’t actually work on your business score, then you may never have this kind of credit. Discovering ways to beef up your business credit score can help your company realize a whole host of untapped opportunities.

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Repair Your Personal Credit

Your personal credit score and business credit score are two totally different entities. However, the first factor in establishing a business score is maintaining a decent personal credit score. Before you can start building business credit, you should focus on any necessary personal credit repair first. If you find that your individual score needs improving, there are some things you can do. Any derogatory marks can keep your score down, so try to dispute these items with each of the different credit bureaus. If you’re successfully able to remove any of these negative marks, your score will increase as a result.

Build Your Business Credit

Although the first step toward building business credit is focusing on your personal credit repair, there are additional measures you should consider. One way to start having good business credit is by paying your bills as early as possible. This factor is very important to the bureaus that determine business scores. Checking with these bureaus can help you understand other factors that make up your score, so you don’t waste time with unnecessary actions.

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Understand the Benefits of Good Credit

Before you go through the necessary credit repair to begin building your business score, you want to understand why this type of credit is significant. Not all companies have established business credit, and it may limit future growth in many ways. A good business credit score makes you eligible for financing opportunities that can dramatically expand your company. A good business score can make or break a deal, especially when purchasing or leasing commercial real estate. If you want to grow your business and make exponential profits, you should pay attention to building business credit.

There are many benefits to establishing a decent business credit score. Your personal credit will improve, your business will grow, and you will realize many new opportunities as a result of your hard work.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Pacific Urban Investors Acquires La Jolla International Gardens

PALO ALTO, Calif., July 06, 2023 — Multifamily owner-operator and investment manager Pacific Urban Investors acquired La Jolla International Gardens, a 400-unit apartment community in the La Jolla / University Town Center (UTC) submarket of San Diego, CA, on April 27, 2023. The property was renamed Allina La Jolla (the “Property”) and marks Pacific’s 21st acquisition in the San Diego Market.

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Allina La Jolla is a 100% market rate property built in 1986. La Jolla / UTC is known as a regional employment driver in multiple science and technology fields due to its business connectivity to the University of California at San Diego (UCSD) research ecosystem. Proximity to downtown La Jolla, job centers up and down the I-5/I-15 corridors, and some of southern California’s best beaches make La Jolla / UTC a highly sought-after locale offering convenient coastal access and short commute times. The Property offers semi-urban, walkable living 10 minutes from the ocean, a job-dense micro location with abundant neighboring retail, and spacious amenities. Community offerings on the meticulously crafted, 7-acre asset include a resort-style pool and spa, sprawling clubhouse, fully-equipped business center, modern fitness center, sand volleyball court, and bar-be-que area.

Pacific Urban Investors is committed to preserving the distinctive character and identity of Allina La Jolla while introducing new initiatives aimed at further enhancing the resident experience. The company plans to invest in modernizing the community’s amenities, including expanded communal areas for residents to connect and engage, and upgrading resident unit interiors.

“Allina La Jolla gives Pacific the opportunity to own a high quality, well-kept vintage asset that offers residents a pleasant living experience with proximate access to La Jolla beaches only a short drive away. Exceptional demographics, award-winning schools, world-class outdoor amenities, and expansive retail offerings make La Jolla / UTC as desired a coastal community as any in San Diego County. The Property’s premium location, access to multiple employment nodes, ample amenities, and well-designed floor plans, all serve as differentiating features in the marketplace,” said Grant Geisen, Senior Vice President of Investments at Pacific.

Pacific’s President Rory Gardner commented, “We are excited to obtain a position in this coveted coastal San Diego submarket where opportunities are so difficult to come by. Allina La Jolla is a welcome complement to our growing Southern California portfolio, and we are actively seeking additional San Diego investments across all our strategies; including both direct acquisitions, as well as joint venture and preferred equity opportunities.”

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About Pacific Urban Investors: The Palo Alto, CA-based company has over $8.6 billion in assets under management and owns and manages a national portfolio of more than 20,000 units. The firm and its partners have decades of experience in apartment investments, both repositioning and ‘re-manufacturing’ multifamily assets and their income streams to their optimal, core potential. Pacific has progressed over time to become a best-in-class owner, operator and asset manager in the multifamily space, serving as a fiduciary for its own partner capital as well as its strategic partnerships with institutional pension funds and other sophisticated investors. Pacific is actively acquiring multifamily assets as a principal and providing both co-investment and preferred equity for development, acquisition, and recapitalization.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

How Different Kinds of 401K Rollovers Can Help Your Employees

By Vista Capital Solutions

Figuring out to handle issues regarding 401K retirement plans can be particularly tricky for some people. When you own a company and offer this kind of benefit to your employees, you want them to get the most out of the experience. People use this kind of feature to save money for retirement, and they take it out of the income they’ve worked hard for. If you’ve hired a new associate who has a 401K with their previous company, then you want to offer them a way to roll it over to the plan that you offer.

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Consider New Associates

When you find a great new candidate to join your company’s team, you want to give them flexible benefits. Allowing them to do a 401K rollover from their previous company to the plan that you offer is a huge benefit. Sometimes, people can’t keep this benefit once they leave an employer and must find a way to roll their funds over to avoid hefty tax penalties.

Think About Former Employees

If you have an associate who chooses to leave your company, then they may have to perform a 401K rollover elsewhere. For example, if this person goes to work for a company that doesn’t offer a 401K plan to its associates, then they will have to find a place to put their account or pay taxes. By allowing your former employee to keep their money in the account after they no longer work for you, you will be saving them a large amount of their hard-earned funds. Check with your benefits provider to see how you can arrange this for former employees.

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Understand Other Options

When people want another option for their 401K rollover, they usually turn to an individual retirement account or IRA. As a business owner, it’s important to understand this option especially if you’re investing for your retirement. This option can help a person avoid the tax burden that comes with cashing out a 401K before the minimum age. If you have a 401K from a previous job and wish to put the money elsewhere, choosing this option is usually a good idea. Check with your local financial advisor to learn more about this process.

Understanding more about how to transfer from one 401K to another can help you make informed benefits choices for your employees. When you offer more options to your workers, they will be happier as a result.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

The Lock-In Effect and Keys to Success

By Rick Tobin

There sure seems to be more bad news than good news these days about the state of real estate. During turbulent times like we’ve all seen in recent years, the most common first human reaction is usually denial or acting somewhat like a locked up “prisoner” with a frozen “deer-in-the-headlights” look in our eyes. Yet, this is exactly when we should stay focused on the potential opportunities more so than the temporary obstacles standing in our way.

As foreclosure filings continue to increase to an average near 50% higher than the pre-pandemic years (2019 and earlier), struggling homeowners and landlords will need to focus on solutions such as loan modifications, forbearance agreements, short sales, and quick sales for cash. As an investor in the near future, you will likely find more deals readily available to choose from if you know where and how to look for them.

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Some metropolitan regions like Houston have 56% higher foreclosure rates. Other places like Minneapolis/St. Paul saw +106% foreclosure rates in March. Nashville was +35% higher and Phoenix + 33% higher in May; Rhode Island was up 32% in May.

During the depths of the Credit Crisis / Great Financial Recession years between 2008 and 2013, California was hit the hardest with a -41% home price drop average from peak to trough. Nevada, Arizona, and Florida weren’t too far behind.

Some California home prices have risen as much as +41% over a period of just 18 to 24 months in recent years, so an equivalent -41% price drop is easier to imagine as some values may drop back towards 2021 levels.

The typical home today is about $80,000 higher than it was just two years ago. The average monthly rent payment today is more than $1,000 higher than it was in 2020. Middle-income first-time buyers are unable to afford 70% of homes. As California unemployment rates continue to rise at a faster pace than most other states (Big Tech layoffs, especially), it will be more challenging to continue making mortgage payments.

Rental Market Trends

Today, there are 65% more active short-term rental listings on Airbnb and VRBO (965,000+) than all homes listed for sale nationally (554,000+), as per Realtor.com and other sources. At some point, the vacant short-term rentals will become listed homes for sale or distressed properties due to higher vacancy rates.

Ironically, the founders of Airbnb originally used air mattresses to cover their own San Francisco apartment unit’s rent. Eventually, air bubbles go pop one way or another.

Rent Increases

The following metro areas have experienced the greatest year-over-year rental price percentage increases through May 2023:
Providence-Warwick, RI-MA (+17.44 percent)
Kansas City, MO (+13.20 percent)
Minneapolis-St. Paul-Bloomington, MN-WI (+8.97 percent)
Raleigh-Cary, NC (+8.05 percent)
Charlotte-Concord-Gastonia, NC-SC (+7.65 percent)
San Jose-Sunnyvale-Santa Clara, CA (+7.59 percent)
Hartford-East Hartford-Middletown, CT (+7.47 percent)
Columbus, OH (+6.81 percent)
Los Angeles-Long Beach-Anaheim, CA (+6.20 percent)
Riverside-San Bernardino-Ontario, CA (+5.97 percent)

Rent Decreases

The following metro areas have experienced the largest year-over-year rental price percentage decreases through May 2023:
Austin-Round Rock-Georgetown, TX (-20.76 percent)
New Orleans-Metairie, LA (-20.42 percent)
Las Vegas-Henderson-Paradise, NV (-10.57 percent)
Houston-The Woodlands-Sugar Land, TX (-8.42 percent)
Seattle-Tacoma-Bellevue, WA (-8.28 percent)
Cincinnati, OH-KY-IN (-6.49 percent)
Phoenix-Mesa-Chandler, AZ (-6.46 percent)
Birmingham-Hoover, AL (-5.98 percent)
Memphis, TN-MS-AR (-4.85 percent)
Oklahoma City, OK (-4.44 percent)
Source: Rent.com

Multifamily Trends in Southern California

Sales and prices for multifamily apartment buildings have started to really fall in Los Angeles and other metropolitan regions across the nation. Specifically within Los Angeles, the number of units fell 11% in the first quarter of 2023 as compared with the previous fourth quarter in 2022. More shockingly, multifamily apartment building prices collapsed by -37.5% year-over-year as per a report shared by NAI Capital.

During the same first quarter time period, the average sales price per apartment unit dropped by 18.4%. One major factor for the falling price and sales volume numbers for Los Angeles County was directly related to the Measure ULA “mansion tax” that affected both luxury homes and commercial real estate properties priced above $5 million as of April 1st.

While $5 million may seem pricey for a luxury home in Los Angeles or elsewhere, the same $5 million dollar price tag for a rather small multifamily apartment building is much more common.

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Strangely, both vacancy rates and apartment rents continue to rise together at the same time in many parts of Los Angeles and elsewhere. Average rents rose to $2,156 per apartment unit in Los Angeles, a +1.9% year-over-year increase.

Some regions of Los Angeles had more negative rent, sales price, and vacancy trends. For example, the first quarter numbers for these Los Angeles multifamily submarkets were more negative than positive and were as follows:

  • San Fernando Valley and Santa Clarita Valley: The average multifamily sale price per unit fell by -35.9% year-over-year while the vacancy rates increased by +22%.
  • San Gabriel Valley: The average sales price per unit decreased by -20.3% while vacancy rates skyrocketed by +32.2%.
  • L.A. Westside: The average sales price per unit fell by -9.5% while vacancy rates increased by +10.7%.

Historically, rising vacancy rates and rental payment trends are usually inverse to one another like a seesaw with payments falling as vacancy rates rise. We shall see how long this trend lasts.

A very high number of landlords haven’t collected a rental payment for two or three years either, especially in Los Angeles County. When will the foreclosure and tenant eviction rates really begin to accelerate and adversely impact both tenants and landlords?

The Locked-In Homeowner and Unlocked Treasures

There are upwards of 16 to 20 million vacant or distressed properties across the nation. Additionally, there are millions of distressed FHA mortgages alone. Many homeowners haven’t made a mortgage payment for more than three years just like so many tenants.

Loan modifications, forbearance, and loan forgiveness plans continue at near record paces across the nation. Lenders are not filing foreclosure as aggressively as they would have in years past, partly due to ongoing pandemic restrictions in place. This is a major reason why the national home listing inventory supply is so low.

Another reason why there are so few homes listed for sale is because upwards of 92% of homeowners with a mortgage have an existing rate at or below 6%, as per a study released by Redfin. Let’s take a quick look below at the fixed rate estimates for homeowners as of the first quarter:

  • 91.8% of mortgaged homeowners have rates below 6%.
  • 82.4% of homeowners have rates below 5%.
  • 62% of homeowners have rates below 4%.
  • 23.5% of homeowners have rates below 3%.

It can be rather challenging for a homeowner to consider losing their 6%, 5%, 4%, 3%, or even 2% fixed rate mortgage with a 30-year term and move to another home with a rate closer to 7% or 8%. As a result, it’s referred to as the “lock-in effect” because so many homeowners don’t want to lose their near record rate locks.

The market may change for the better or worse later this year depending upon a few factors such as follows:

First, will future unemployment trends improve or get worse. A loss of income is generally the #1 reason why someone loses their home to foreclosure.

Second, will lenders and loan service companies start to file foreclosure notices at a much faster pace than in recent years?

Third, will tenant protections in place be eased up or tightened? Most landlords are small investors who may be fortunate to own just one or two rental properties. After months or years of no rent collected, the landlords may be at risk of losing their rentals and primary home to foreclosure.

Your key to future success that unlocks your potential as either a homeowner, investor, or tenant is to focus on the positives and negatives while minimizing your risk and maximizing your gains. With the right mindset and guidance, it will be akin to a literal key that unlocks a treasure chest!!!

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.