Please review this special invitation to our new webinar.
ONLINE EVENT FOR OUR INVESTORS: Make Money Flipping and Holding Condos/Townhouses/PUDs — Learn About this Niche
Do you want to make those big profits from rehabbing, but don’t know anything about construction? Do you like the idea of passive income, but don’t like shoveling sidewalks and mowing lawns?
If so, be sure to join our next LIVE webinar this upcoming Saturday, September 21st, and learn why this is the best time to buy condos in today’s hot market!
Webinar: Condos — Your Way To Financial Freedom
Tired of being priced out of the market? So were we, until we began to invest in condos/townhouses and PUDs (planned urban developments). The entry point was so much easier that we are able to pay cash on many deals.
This real estate niche has truly worked for us and that’s why we’re so passionate about sharing information about these type of deals. In fact, we sought out the best Condo educator we could find to teach this lucrative niche to our readers and network members.
Our educator for this important webinar is Linda Baumgarten. She is the co-founder of CTREIA, the largest real estate association in New England, the author of two books, and one of the most experienced condo investors we know.
By accident, Linda’s first rehab (buy/hold) property was a condo. She rehabbed it in a couple of weeks, rented it for $350 per month positive cash flow, and then doubled her purchase price only 18 months later!
Since then, she has purchased condominiums in multiple geographic markets from low end to luxury units. More importantly, her students have found massive success buying condos with little to no experience.
Be sure to invest time in your REI education by attending this complimentary live webinar this coming Saturday, September 21st,10 AM PT / 1 PM ET.
Investors will learn:
How to buy a condo with little or none of your own money
Which condos NOT to buy
Case studies of a Rehab and a Buy/Hold Condo Deal that you can replicate
Multiple exit strategies: wholesale, rehab or buy/hold and even AirBNB
How to analyze a deal in 15 minutes or less
Please note this special webinar will not be recorded in its entirety. We want investors to be fully engaged in their education so be sure to join us live! Once again, leading this online session is Linda Baumgarten, co-founder of CTREIA, the largest real estate association in New England.
We hope you can join us this Saturday for a fantastic educational live webinar. Be sure to register below.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/condo-webinar.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-17 04:27:312024-10-31 05:29:39Live Webinar: Invest in Condos/Townhouses– Here’s Why
Understanding the value of cash flow in rental home investments cannot only optimize your investment, but also secure financial growth over time. This article seeks to demystify the multifaceted nature of cash flow in rental properties, particularly with the use of a 30-year fixed rate loan.
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For starters, it’s crucial to understand the basic premise of buying a rental home using a small down payment and a 30-year fixed-rate loan. This financing strategy entails constant principal and interest payments throughout the term of the loan. The total of principal and interest (PI) payment does not fluctuate regardless of inflation. That means inflation becomes a “friend” to the owner, as it constantly makes all prices rise EXCEPT the fixed mortgage PI payment, as well as the fixed mortgage’s balance. As a result, with the passage of time, and thanks to inflation, the REAL value of the fixed loan becomes ever-smaller since the price of everything rises constantly with inflation, while the mortgage payment and balance never do.
Historical data shows that rental rates usually trend upward with inflation, on average. While inflation may seem daunting for many economic sectors, it is a boon to the rental housing market. Property owners stand to gain increased revenue over time, as rents rise but the mortgage PI payment remains the same, which positively impacts their overall cash flow. As the home value also rises with inflation, the owner’s equity rises as well, building the owner’s net worth.
Often, investors and real estate novices interpret ‘cash flow’ as the initial cash flow that occurs at the time of purchase. This perspective, however, is limited, and does not give a comprehensive picture of the lifetime behavior of the property. While the initial cash flow is undoubtedly an essential factor to consider, it should not be the sole determinant of a rental property’s value.
The owner of the rental home enjoys constant cash flow improvement as rents escalate due to inflation. While rental income grows, the principal and interest (PI) mortgage payment remains static due to the fixed-rate loan. This discrepancy creates a widening gap between income and expense over time, increasing the rental home’s profitability. Hence, an investor’s cash flow does not stagnate at the initial point of property purchase but continues to rise in a beneficial cascade over time.
Given this evolving nature of cash flow, it’s more realistic to consider it over the years rather than focusing solely on the initial cash flow at the moment of purchase. Viewing cash flow as a long-term component can guide strategic decision-making, enhancing the likelihood of generating substantial financial gain over time.
At the risk of repeating myself (and this is so important for our future I think it bears repeating), the owner also benefits from an ever-decreasing real dollar value of the loan balance due to inflation. The principal of a 30-year fixed-rate loan does not increase with inflation. Over time, the principal balance decreases in real dollar value, making the debt easier to handle as years go by. This phenomenon becomes even more pronounced when an investor owns several rental homes. Once the loan balances reach a low point, say 25% of the home value, an investor can opt to sell several properties. After accounting for taxes (even if no tax deferred exchange is used), the proceeds can be used to pay off the remaining loans. With the remaining properties free and clear, they can provide a significant boost to the owner’s cash flow, creating a more secure financial footing. That is also an important facet of “cash flow”. Many people retire powerfully at that stage. Even though the loan is called “30 years fixed”, we don’t have to wait for 30 years, a scenario like the one described above typically happen in 12-14 years.
Rental homes, especially those financed via 30-year fixed-rate loans, are long-term investments typically spanning a decade or more. In the initial years, the rental income may merely cover the mortgage payments and operational costs, with little left as profit. If interest rates are high and the down payment is low, it is quite possible to begin the journey with some negative cash flow. However, as the years pass, the benefits of rising rents and the decreasing real value of the loan balance and PI payments, begin to manifest. Over time, these properties can result in a substantial income stream, possibly to the point of substituting regular employment income.
The primary “cash flow” most people rely on at the beginning of their real estate investing journey, is their job-based salary or income. But venturing into rental homes investment can create an additional, and in time, a primary cash flow source that can revolutionize your financial narrative. Thus, understanding and effectively managing cash flow in rental homes can set you on a path to long-term financial stability and growth, turning the dream of financial independence into a tangible reality.
If interest rates are high at the time of purchase, the investor needs to consider that, in the future, interest rates can only do one of three things: they can stay the same, they can go up, or they can go down.
If interest rates stay the same, all the benefits of the financial gift called “A 30-year fixed mortgage in the face of constant inflation”, accrue to the owner. The PI payments get lower and lower in real dollars, as the rents increase. The principal owed constantly gets eroded by inflation, and well as by the principal payments made monthly. In time (usually 12 to 14 years), the loan balance is a relatively small fraction of the home value, and the owner has good equity built up, which can be translated into significant cash flow.
If interest rates go up, the same benefits accrue to the owner as when the rates stay the same, with the additional psychological benefit of feeling good to be locked into a rate that is lower than the market rate.
If interest rates go down, the owner can refinance the loan to a new low rate. Yes, refinancing is not free. However, many lenders build the loan expenses into the balance of the new loan, making it easier as far as cash expenditures. It’s a simple calculation as to how many months of holding the property it will take to cover the expense of refinancing. For the long-term holders (and I recommend that everyone be a long-term holder), the refinance expense will be covered in a fraction of the future holding time of the property, and will usually justify itself many times over.
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When I talk to new investors, it is not uncommon for them to be engineers or managers in Silicon Valley. Such an investor is well paid. In many cases, they are married, and the spouse also works. I consider the initial overall cash flow in their life to be the cash flow from their salaries or business income. As the years go by, the property gives off higher and higher cash flow, as rents rise with inflation, while the mortgage PI payments remain fixed. After 12-14 years, in most cases, the investor may find themselves with several homes (some investors end up buying dozens or more, using 1031 tax deferred exchanges, as well as other methods, on route to building a large portfolio), with loan balances as little as 25% of the value of the home. They can then sell, say, a quarter of the homes, pay taxes, and pay off the remaining small loans with the proceeds. Now, with several (or many) free-and-clear properties, the houses provide so much cash flow, that in many cases the owner can retire well.
ADIEL GOREL
Adiel Gorel has more than three decades of successful real estate investing experience. As the CEO of ICG (International Capital Group) Real Estate, a world-renowned real estate investment firm founded in the San Francisco Bay Area in 1987, Gorel has helped investors utilize one of the most powerful investment tools—single family rental homes. He teaches people how to have fun with a process most find complex and speaks about the importance of securing a strong financial future for retirement, business investing, and college education.
Through ICG, he has assisted thousands of investors, from novice to expert, in purchasing over 10,000 properties to date. He is also the author of Remote Control Retirement Riches, and Invest Then Rest: How to Buy Single-Family Rental Properties, which includes numerous investor reports describing their real-life investing experiences. He has also authored Remote Controlled Real Estate Riches, Discovering Real Estate in the U.S. and Life 201.
Gorel has been featured on NBC, ABC, in Fortune Magazine, the San Francisco Examiner, and numerous radio shows showcasing his no-nonsense, insightful approach to rental single family home investing. He speaks worldwide and throughout the U.S., sharing his knowledge on a variety of topics including securing a powerful financial future, investing in single-family homes, the 30-year fixed-rate mortgage, and related subjects.
ICG has established an infrastructure to support investors in many metropolitan areas in the U.S. Gorel owns many properties himself.
To this day, Gorel supports individual investors via planning, assistance in remote home buying, and property management issues resolution.
He holds a master’s degree from Stanford University. His professional experience includes being a Hewlett-Packard research engineer, as well as management and director positions at Excel Telecommunications, and several biotechnology firms. He lives in the San Francisco Bay Area.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/cash-flow-banner.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-16 03:14:042024-09-16 03:14:06What Cash Flow Really Means When Investing in Rental Homes
Have you been holding off on investing, waiting for interest rates to fall? Now is the perfect time to jump in. Interest rates have been steadily declining, even before the Federal Reserve’s expected rate cuts. Acting now gives you a unique opportunity to take advantage of favorable conditions before more investors flood the market.
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Here’s why you should move quickly:
Lower Investment Costs: With falling interest rates, borrowing becomes cheaper, reducing your overall investment costs and allowing you to maximize your purchasing power.
Higher Cash Flow: As interest rates decline, your cash flow improves because you’ll spend less on loan repayments. This means more money in your pocket and greater returns on your investments.
Less Competition, More Incentives: Fewer investors are in the market right now, giving you the advantage of accessing better deals and potential cost-saving incentives.
Once interest rates drop further, competition will increase, driving prices up and making it harder to find great opportunities. Get ahead of the crowd and invest before it’s too late!
840 Paddock Dr, Florissant, MO 63033
Property Details
Price: $186,000.00
Monthly Rent: $1,350.00
Taxes: $2,041.00
Bedrooms: 3
Bathrooms: 1
Square Footage: 1296
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Our Range of Services
– Property Management
– Insurance Solutions
– Sales Assistance
– Renovation Projects
We offer Incentives!
Please reach out to Legacy Invest today to explore the diverse range of cost-saving options we provide. From tailored financing plans to exclusive discounts and promotional offers, our goal is to enhance your purchase with maximum cash flow benefits. Don’t miss out on this opportunity to optimize your investment and achieve greater financial efficiency. Contact us now to discover how we can help you save more and gain more!
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/Legacy-Invest-Realty.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-14 04:32:002024-09-16 00:02:16Don’t wait before it’s too late!
Looking to reach more potential buyers, the 38,000-square-foot home of Jennifer Lopez and Ben Affleck has hit the Zillow listings at $68 million. The 12-bedroom, 24-bath home with a 12-car garage had been on the market for over a month before the Zillow posting. Jennifer & Ben spent months looking for the perfect family home before they pulled the trigger and paid $61 million for the Beverly Hills home in 2023. Jennifer recently filed for divorce, ending their two-year marriage.
Burt Reynolds’ Mountain Home Sold
A North Carolina home in the Blue Ridge Mountains that was once owned by Burt Reynolds just sold for $2.9 million. The North Carolina home includes four bedrooms, five baths and a stone bathroom built by his then-wife, Loni Anderson, for Burt. According to the listing agent, Burt fell in love with the area while filming Deliverance and subsequently purchased the home. He said that it was his favorite home.
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Goodbye Wave House—It Sold for $29.5 Million
Supermodel Karlie Kloss and Joshua Kushner, brother of Jared Kushner, have purchased one of Malibu’s most famous homes. Designed by surfer-architect Harry Gesner in the early 1960s, the Wave House was designed to complement the ocean’s waves.
Tom Petty’s Malibu Home
The Mediterranean-style home that Tom Petty bought in Malibu in 1998 is on the market at $19 million. The property includes a 10,000-square-foot main home, a guest home, a recording studio, seven bedrooms, a pool and 2.6 acres. Petty died in 2017.
Ellen Does Another Real Estate Flip
photo by Alan Light, CC BY 2.0 , via Wikimedia Commons
When Ellen DeGeneres was growing up, her parents always rented and never were able to own their own home. But they often looked at homes for sale, and Ellen dreamed about how it would be to have her own room in one of them. When she became financially successful, Ellen started buying homes and flipping them, over and over, for large profits. She just did it again, selling neighboring properties consisting of a five-bedroom home on 3.44 acres and its next-door 6.58-acre lot in Carpinteria, California for $96 million. She bought the properties for $70 million in 2022.
Kanye Unloads His Malibu Gut Job
In 2021, Kanye West paid $57.3 million for a Malibu oceanfront home designed by architect-to-the-stars Tadao Ando but tore just about everything out of the home, leaving just a bare shell. He listed the home earlier this year for $53 million and quickly reduced the price to $39 million. The home just sold for $21 million.
US VP Candidate Tim Walz Is Homeless
Democratic VP candidate Tim Walz has not owned a home since he sold his home in Mankato, Minnesota in 2019 for $315,000, following his election as the state’s governor. He has no real estate, stocks or bonds, but he is currently living in the historic Minnesota Governor’s Mansion.
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Clint Eastwood’s Longtime Seaside Home
A Carmel, California home where Clint Eastwood lived when he was the mayor of the town is for sale at $21 million. Eastwood bought the Spanish Renaissance-style home a few years before he was elected mayor and sold it in 1996. The four-bedroom home was built about a hundred years ago with ocean views, 4,400 square feet, an interior courtyard, and a walkway to the beach. Eastwood was the mayor of Carmel from 1986 to ‘88, getting over 72% of the vote.
NBA MVP Lists All-Star Penthouse
One of Boston’s best penthouses, currently owned by the NBA Boston Celtics MVP, Jaylen Brown, is for sale. An apartment with all the bells and whistles you might expect in the home of a three-time NBA All-Star who signed a five-year, $304 million contract in 2023.
Rob Lowe Home For Sale
David Shankbone, CC BY 3.0 , via Wikimedia Commons
The Beverly Hills home that Rob Lowe bought in 2020, about the same time he sold his longtime Montecito home for $45.5 million, is for sale at $6.575 million. The three-bedroom home includes 2,940 square feet, a gym, den and pool.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/celebrity-news.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-12 05:45:182024-09-12 05:45:20Top 10 Celebrity Real Estate News: Jennifer Lopez, Kanye West & Rob Lowe
ReUp Living Undertakes Major Renovation to Justin Bieber’s Former Hawaii Vacation Home and Plans to Restore Ultra Luxury Home’s Original Architectural Vision.
With plans to renovate the iconic Waterfalling Estate on
Hawaii’s Hamakua Coast and return the luxury property to its original glory,
ReUp continues to push the boundaries of what is possible with new technology
in the real estate market.
HAMAKUA, HI —ReUp Living, the pre-listing solution for homeowners, buyers and real estate agents that increases a home’s value by remodeling it with no risk or upfront costs before selling, proudly announces that work has begun on the prestigious Waterfalling Estate on Hawaii’s Big Island. This ultra-luxury property, known for its stunning natural waterfalls and having served as Justin Bieber’s vacation home, will undergo significant renovations to restore it to the original architect’s intentions.
“When we saw the potential in
Waterfalling Estate, we knew it was a perfect fit for ReUp’s innovative
approach to real estate,” said Ryan Sawchuk, founder of ReUp. “Our goal is to
honor the original architectural vision while incorporating modern enhancements
that elevate the property to its full potential. We’re partnering with the
original builder to work with us on this project, which further highlights the
community’s desire to see this historic estate continue its legacy.”
Waterfalling Estate, perched atop a cliff on Hawaii’s Hamakua Coast, has also been a filming location for popular TV shows like CBS’s “Love Island” and MTV’s “Ex on the Beach.” This nearly 11,000-square-foot property features five bedrooms, seven bathrooms, a 16-foot deep Olympic pool with a two-story waterslide, a nine-hole golf course and a tennis stadium. Its most spectacular feature, however, is the pair of largest, privately-owned natural waterfalls in the U.S. cascading into the ocean, offering a serene and dramatic backdrop that has caught the eye of numerous celebrities and TV producers.
“When I bought the property, I saw it as an undervalued gem that, with the right investment, could be restored to its former glory,” said Eric Lochtefeld, Chairman of ReUp. “These special properties need unique representation. When ReUp successfully renovates and sells this property for its true worth, it will be a significant achievement.”
As part of the renovation process, ReUp
has created a Digital Twin of the Waterfalling Estate. This 3D model allows
prospective buyers to tour the property virtually and visualize the planned
renovations, choosing from literally millions of permutations to make it their
own. Instead of having to make changes to an existing home months after the
purchase, buyers get the home they want the day they move in.
“The beauty of our platform is that whatever a buyer envisions, they can have,” Sawchuk said. “The house is built with a helicopter landing pad, for example. Personally, I would want a hot tub or tiki-club, but someone else might want a helicopter pad. This shows the difference with ReUp — the seller shouldn’t dictate what’s done; it should be through our platform so buyers can request modifications before they move in.”
ReUp’s restoration of the Waterfalling
Estate signifies a strong entry into the luxury real estate market, showcasing
the brand’s capability to handle high-end properties and complex renovations.
“ReUp is creating tools for everyone
involved — agents, buyers and sellers,” said Lochtefeld. “Renovations are
challenging if you haven’t done it before, so any tools that streamline this
process are beneficial. ReUp supports both buyers and sellers, empowering
property owners to overcome the fear of selling for less than their property’s
worth.”
ReUp is a pre-listing solution for homeowners,
buyers, and real estate agents that increases a home’s value by remodeling it
with no risk or upfront costs before selling. Founded in 2021 by Ryan Sawchuk,
ReUp began franchising in 2022 and has set out to transform the real estate
process by updating tired homes with turnkey home improvements that require no
upfront costs. Unlike traditional real estate transactions, ReUp covers the
renovation costs and then splits the profit from increased home values,
ensuring higher gains from real estate sales. The company can also
simultaneously allow buyers to customize the new home while financing is
closing. ReUp takes care of all renovation costs, sourcing, project management,
and communication, while only using licensed and insured general contractors on
all projects. ReUp is making home improvements accessible and stress-free so
sellers can increase the value of their homes, buyers can customize and update
the home of their dreams, and real estate agents can maximize their
profitability through higher property values post-renovation. For more information
on ReUp or a ReUp Franchise, visit ReUpLiving.com.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/Justin.png4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-11 04:26:512024-12-06 04:22:56Justin Bieber’s Former Vacation Home Sold for $6.25 Million; CEO Partners with Original Builder to Restore Property to Former Glory
Recent TOP Real Estate News: Nicolas Cage, Nicole Richie & Marilyn Monroe
Marilyn Monroe’s Home Is Saved
Marilyn Monroe’s home, where she died in 1962, has been declared a historic-cultural monument by the City of Los Angeles. The 2,624-square-foot home was in danger of being demolished, which this designation will prevent. It was the only home that Marilyn ever owned.
Jimmy Buffett’s Palm Beach Home
Jimmy Buffett owned many homes in his lifetime, including homes in Beverly Hills, Palm Beach, West Palm Beach, Daytona Beach and Sag Harbor. His three-bedroom, 1,523-square-foot home in Palm Beach is for sale at $7.25 million.
Nicolas Cage’s Haunted Mansion
Georges Biard, CC BY-SA 3.0 , via Wikimedia Commons
A New Orleans mansion once owned by Nicolas Cage and which many believe is haunted is for sale at $10.25 million. Located in the French Quarter, the grand property has been the subject of ghost stories since 1834, when a fire destroyed much of the mansion, and seven mutilated slaves were discovered locked in the home. One of several New Orleans haunted homes but also one of the city’s most beautiful homes, features include a wraparound balcony and a rooftop deck.
Nicole Richie & Cameron Diaz Selling Beverly Hills Homes
First, Benji Madden, and his wife, actress Cameron Diaz, put their Beverly Hills home on the market for $17.8 million. And now, Benji’s brother Joel Madden, and his wife, actress Nicole Richie, have followed along, listing their Beverly Hills home for $12.95 million.
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Mandy Moore Lists Pasadena Home She Rescued
In 2017, Mandy Moore and her future husband Taylor Goldsmith bought a 1950’s mid-century in Pasadena that had been the victim of an unfortunate redo in the 1990s, which obscured the mid-century clean lines. Mandy and Taylor fixed the mistakes and have now listed the home for $6 million.
The Teenage Judy Garland Home Sold
The Los Angeles home that teen star Judy Garland bought in 1938, the same year she was signed to star in The Wizard of Oz, has sold for $11 million. Clearly, a showplace when it was built and featured in the most prominent home magazines at the time, such as Architectural Digest, the two-story white home and grounds are still a showplace with its circular-gated driveway, prestigious location, and timeless design. The home was built by Wallace Neff, who also designed homes for Mary Pickford and Douglas Fairbanks, Fredric March and Charlie Chaplin.
Sean ‘Diddy’ Combs Lists LA Home $70 Million
Sean ‘Diddy’ Combs has listed his LA home, the same home recently raided by federal agents, for $70 million. Sean bought the 17,000-square-foot home in LA’s Holmby Hills neighborhood in 2014 for $39 million.
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Palm Beach Mizner Mansion Sells $148 Million
A Palm Beach mansion designed by Addison Mizner has sold for $148 million. The home, with six bedrooms and over 22,000 square feet, was built in 1919 and undergone several restorations, including after a 2007 lightning strike. It is the fourth-highest sale ever of a Palm Beach condo or home. The buyer is reported to be Daren Metropoulos, who also bought the LA Playboy Mansion in 2016 for $100 million.
NFL Star Lists Fort Lauderdale Beach Condo
NFL star and Fort Lauderdale native Nick Bosa has listed his two-level beach condo for $1.75 million. Located in a popular Fort Lauderdale neighborhood, the three-bedroom, 2,097-square-foot condo includes three bedrooms, partial ocean views, and designer finishes. The condo building was completed in 2020, one of a dozen new Fort Lauderdale oceanfront condo projects since 2015.
From Will Rogers to Michelle Pfeiffer
joyparris, CC BY 3.0 , via Wikimedia Commons
A home that was originally built for Will Rogers in the 1930s and more recently owned by Michelle Pfeiffer has just sold for $14.044 million. The ultra-private equestrian estate is set on 3.3 acres in the heart of LA’s Pacific Palisades, where neighbors ride their horses down the street. The historic property includes five distinct structures: a main home, a staff house, a pool house, stables converted into a home gym, and a newly constructed two-story guest house.
REAutomation Technologies’ new platform offers cutting-edge tools and access to a true online RE marketplace
Real estate investment technology has taken a step forward with a new platform that offers:
Easy property listing and online negotiation
Custom buyer criteria allows investors to be proactively notified when newly listed properties meet their criteria
Real-time analytics and comprehensive data, document, task, and process management, customizable to individual needs
In the fast-paced world of real estate investment, staying ahead of the competition requires leveraging the latest tools and technologies. REAutomation Technologies is a groundbreaking platform designed to streamline residential real estate transactions for investors. Significantly, this new tool offers buyers and sellers unparalleled efficiency and effectiveness. Whether you’re an experienced investor or just starting out, this new platform has the potential to streamline every aspect of the real estate investment process.
What is REAutomation Technologies?
REAutomation Technologies is an advanced online marketplace and process automation platform tailored for residential real estate investors. The platform combines cutting-edge technology with a user-friendly interface, providing a seamless experience from property discovery to closing deals. In addition, by integrating powerful technology tools for evaluation, negotiation, and transaction management, REAutomation Technologies aims to transform the way investors operate, maximizing their ROI and minimizing operational hassles.
Key Features and Benefits of Real Estate Investment Technology
Easy Property Listing, Market Analysis, and Powerful Tools
For property sellers, listing properties has never been easier. With REAutomation Technologies’ new platform, sellers can quickly upload detailed property information and images, creating attractive and comprehensive listings. Advanced algorithms suggest competitive listing prices based on real-time market data. Properties can be listed selectively or uploaded in bulk using the platform’s advanced tools. Sellers maintain control over the specific data, documents, and photos visible to buyers and can tailor the information presented to suit different Deal Types. Buyers will receive automatic notifications if a property meets their criteria.
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Lead Generation for Sellers and Investment Opportunities for Buyers
Use technology to grow your client base with marketing access to a pool of qualified buyers from REAutomation Technologies’ expansive community of private networks. This feature helps reach more potential buyers and increases the chances of closing deals. Overall, for property buyers, the platform offers a treasure trove of quality investment opportunities. Buyers can set criteria to receive automatic notifications of new properties that meet their requirements and utilize powerful evaluation and analysis tools to model the entire lifecycle of the property.
Online Negotiation, Custom Document Generation, and Electronic Signatures
Engage in seamless online negotiations between sellers and potential buyers, streamlining the entire process. Generate all necessary documents from within the system using saved data and negotiation terms. This feature can eliminate the need for manual paperwork, reduce errors, and save time. In addition, electronic signatures integrated with DocuSign allow all business to be conducted online, further enhancing efficiency.
End-to-End Process Management and Real-Time Analytics
REAutomation Technologies offers robust end-to-end process management, guiding users through every step of the transaction. The platform’s task management screens walk users through each stage of their customized process, ensuring nothing falls through the cracks. In effect, this allows real-time insights and tracks the performance of transactions with intuitive dashboards. These tools provide business-level visibility, allowing users to drill down into the details of each property and transaction. With all data, documents, and photos in one place, workflow can be simplified and securely managed.
Seamless Communication and Collaboration
The platform facilitates transparent communication between sellers, buyers, and real estate professionals (such as title, insurance agents, contractors, property inspectors, etc). Users can interact with their own personal network of professionals, even if those parties do not have an account on the platform! You can ensure that everyone is on the same page, and this simple, seamless collaboration reduces miscommunication and accelerates the transaction process.
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Get Started
Significantly, REAutomation Technologies has partnered with Realty411 to provide its members with a customized “Private Network,” an exclusive space that offers access to off-market properties and a host of other valuable online services. By streamlining transactions, providing powerful tools, and facilitating strategic partnerships, REAutomation Technologies can empower investors to maximize their ROI and grow their business efficiently.
https://www.realestateinvestormagazines.com/wp-content/uploads/2024/09/REAutomation.jpg4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2024-09-06 03:36:432024-09-06 03:36:44New Online Tool May Revolutionize Real Estate Investing
Earlier this year in January, economists from the International Monetary Fund claimed that commercial real estate prices had fallen at the steepest pace in more than 50 years. As we now approach the fourth quarter here in 2024, the price drops have escalated and only worsened for property owners. Now, we might be seeing the worst commercial property price declines in U.S. history.
Between 2024 and 2028, upwards of $2.81 trillion in commercial loans are scheduled to come due and need to be paid off or refinanced, according to Trepp. Within this same analysis provided by Trepp, they project that more than $533 billion will balloon or come due in 2025. The largest commercial mortgage holders for these commercial mortgages coming due are regional banks and thrifts that hold over half of these maturing loans through 2028.
Commercial Real Estate Trends
Let’s take a look at both positive and negative commercial property trends across the nation in recent years:
The estimated total dollar value of commercial real estate was $22.5 trillion as of Q4 2023, which makes it the fourth-largest asset market in the nation following stocks or equities, residential real estate, and Treasury securities. (Federal Reserve’s April 2024 Financial Stability Report),
By 2050, commercial building floor space is expected to reach 124.3 billion square feet, a 33% increase from 2020. (Center for Sustainable Systems, University of Michigan)
72% of commercial buildings in the US are 10,000 square feet or smaller. (National Association of Realtors) The typical length of a building lease in the US is three to 10 years. (DLA Piper)
Approximately 69% of all commercial buyers in the US need financing to purchase properties. (National Association of Realtors)
As of July 2024, the national office vacancy rate reached a whopping 20.1%. This was the very first time ever that the U.S. vacancy rate surpassed 20%. (CommercialEdge)
In 2024, the U.S. apartment construction industry is expected to break a new all-time record for apartment units delivered with well over 500,000 units completed, which is 30% higher than back in 2022. (Fannie Mae)
An estimated one-third of industrial space in the US is more than 50 years old. (NMRK)
The Inland Empire (Riverside and San Bernardino counties) in California had averaged an incredibly low 1.2% vacancy rate for industrial space in 2021 and/or 2022. (Commercial Edge)
However, vacancy rates for industrial properties in the Inland Empire skyrocketed to 6.8% by Q1 of 2024, a 400-basis point vacancy rate increase compared to 2023. The Inland Empire now has the second highest vacancy rate for industrial properties on the West Coast, behind only Phoenix. (Kidder Matthews)
Nationally, the industrial real estate vacancy rate reached 6.1% in the first half of 2024. (CommercialEdge)
For every $1 billion of growth in the e-commerce sector, it requires an extra 1.2 million square feet of new warehouse space. (Prologis)
Is Multifamily Strong or Not?
In many U.S. regions, the multifamily sector is very strong partly since so many tenants can’t afford to buy homes nearby that are currently priced at all-time record highs. In other regions, multifamily apartment landlords may be struggling with significant financial losses.
The multifamily apartment mortgage default rate has quadrupled over the past year, according to Freddie Mac. Last year in 2023, this year in 2024, and through at least 2025, more brand new apartment units will be completed and available for lease than at any other time since as far back as 50+ years ago in 1973.
Multifamily apartment landlords across the nation are defaulting on their mortgages with decade-high rates in states like California, Texas, Florida, and elsewhere.
Some of the main factors why multifamily apartment mortgage default rates are rising are as follows:
1. The owner’s existing mortgage rate may have increased by 100% or more after their previously 3-year, 5-year, 7-year, or 10-year fixed rate converted to a new adjustable rate at today’s much higher mortgage index. As a result, the once positive monthly cash flow turned negative due to the higher mortgage rates and payments.
2. Rising vacancy rates as fewer tenants could afford rapidly increasing rents in many of these apartment building locations found in various metropolitan regions.
3. In other regions, the vacancy rates had increased so much that landlords had to drop their rent prices which, in turn, turned monthly profits into losses.
4. Skyrocketing costs for various types of landlord insurance or umbrella insurance policies as well as increased litigation costs from unhappy or injured tenants.
The multifamily market is projected to add or deliver another 574,000 new apartment units in 2024 alone, according to an analysis shared by the CoStar Group. As a result, future rent prices may start falling as the available supply exceeds the demand.
Upside-Down Office Buildings
Almost 45% of all office buildings nationwide that are leveraged with debt are upside-down or underwater where the existing mortgage debt exceeds the current market value, according to sources like ZeroHedge, Bloomberg, and Morgan Stanley. Some office buildings are now selling for as low as $9 per square foot, not $900/sq. ft.
An eye-opening example of how massive some of these commercial property prices have plunged was the recent April 2024 sale of the 44-story AT&T Center office building in St. Louis, Missouri. Back in 2006 near the previous real estate bubble peak, the same building sold for $205 million dollars. In April, this property sold for just $3.6 million, which was a staggering 98% value drop.
Some savvy investors who purchase these discounted office buildings may choose to convert them into multifamily apartment buildings if the remodel and rezoning costs aren’t too high. Are you seeing heavily discounted office building deals in the areas where you live or invest as well?
Two of the main causes for falling residential and commercial real estate values are related to rising unemployment and upside-down properties as more people may soon clearly see, sadly.
All-Time Record Consumer Debt and Defaults
The ability to pay rent or a mortgage payment is directly related to access to cash and credit for most people. When times are more challenging and the employment or investment income is either lower or nonexistent, many people choose to access their credit cards to make their monthly payments. Once the credit card limits are reached, some tenants may not be able to pay their rents.
There is not a single state in the U.S. today with less than a 10% credit card delinquency rate for their residents as credit card APRs are near 28% to 40% in 2024, depending upon the credit card issuer and the borrowers’ creditworthiness .
Back near the depths of the Great Recession in April 2009 when credit card rates were closer to 12%, the national credit card delinquency rate was only 6.77%.
Highest Credit Card Defaults
By state, here is the percentage of consumers who are delinquent on one or more accounts:
Here are the U.S. cities where the largest share of people are behind on their credit cards by at least one payment. 1. McAllen, Texas — 51.7 percent 2. El Paso, Texas — 46.3 percent 3. Baton Rouge, La. — 45 percent 4. Greensboro, N.C. — 44.8 percent 5. Columbia, S.C. — 44.6 percent 6. Jackson, Miss. — 44 percent 7. San Antonio, Texas — 43.8 percent 8. Augusta, Ga. — 43.3 percent 9. Greenville, S.C. — 42.6 percent 10. Memphis, Tenn. — 42.5 percent
Just like following the Great Depression, the Savings & Loan Crisis, and the Great Recession, there were incredible discounting buying opportunities for homeowners and investors who were searching for both residential and commercial real estate deals.
You must continue to stay focused on the opportunities rather than on the obstacles to get ahead in this world. “Out of chaos comes opportunity” as I like to say repeatedly to friends, family, and clients.
If 99 people are running towards the hills and doing nothing, you can be the sole brave and wise person who buys the property for almost cents on the dollar like some of the office building deals. If so, you might create generational wealth for you and your family.
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.
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Becoming a real estate investor gives a person the fantastic opportunity to generate passive income, but if you want to be successful, you need to have a strategy. According to HUD, there are between 10 million and 11 million individual investor landlords managing an average of two units each in the United States. While it may be somewhat easy to become a landlord, it is challenging to be a successful landlord who brings in a profit each month.
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Being a landlord should be treated like being a business owner and should include a business plan. Your income property business plan should include things like financing options, marketing strategies, budgeting for maintenance and repairs, and your long-term goals. It should also include identifying your ideal tenant but be wary of fair housing laws. When determining who you would like to rent to helps you narrow down the type of amenities your property should have. Prospective tenants may demand specific amenities like a pet-friendly rental with a yard or that the unit is within close proximity to public transportation and schools. These amenities may call for higher rental rates but could also come with their own headaches and affect your return on investment.
Residential Properties
Single-family home or townhome, condo, or manufactured, pricing strategies are pretty much the same. Many landlords use the 1% rule. This rule suggests charging 1% of the home’s value for rent. In reality, it is not that simple and there are other factors to consider.
Where Should I Start?
Whether you are getting ready to purchase an investment property or preparing to put it on the rental market due to tenant turnover, when deciding how much to charge for monthly rent you need to figure out a rental price that is high enough to cover your mortgage and operating expenses while ultimately giving you extra cash each month. But, you can’t just set a rental rate based on how much profit you’d like to make on your rental property. Unfortunately, it doesn’t work that way. Many factors go into determining how much to charge for rent. Let’s discuss them.
First, let’s talk about market rent. Market rent refers to the average rent price for a rental property and is determined by the real estate market value. When you get ready to list your property for rent, it is essential to see what your competition, other landlords, are charging for their rates. Some factors which affect the amount you can charge in rent are:
Square footage
Number of bedrooms
Number of bathrooms
Garage or covered parking spaces
Pet policies
Property type (single-family home, condo, etc.)
It is a good idea to research property values in the area where your property is located. This part of the process should be pretty simple. You can either look at one of the many online home search websites to do your research or ask your real estate agent to give you access to an online portal through your local MLS. Either way, you will be able to see what is available in your area filtered out by the homes that have similar features.
Depending on the type of property you have purchased, there may not be an identical comp to base your price on. One way around that is to look at the price per square foot in your neighborhood in properties as similar as you can find. Even if your property is 1200 square feet and the house down the street that just got rented out is 1600 square feet, you can still look at that number to help you determine your rate. So if the 1600 square foot house rented for $2,000 per month, that would make the price per square foot $1.25. You could then base your price on that number by multiplying $1.25 by 1200.
Rental Property Expenses
As we discussed, you cannot just set a rental price based on how much money you need to make in order to cover expenses and generate a profit. At the same time, you need to be aware of your costs so that you can set the price high enough to make a profit. When determining how much you will need to charge for rent each month, there are some additional, not so fun considerations to take into account.
These include:
Mortgage payments
Property taxes
Insurance
HOA fees
Property management fees
Maintenance fees
Rental income taxes
Utilities
Each of these items are additional expenses that you will have to cover and can vary by city or even neighborhood you purchase in. These fees are typically the same year-round, so it is somewhat easy to put them into your plan when working to determine the monthly rental rate.
Commercial Properties
The process of arriving at a rental rate on your commercial property is similar to that of a residential home.
You will need to look at similar properties to what they are renting for, just like you would with a residential property. In general, you would look at the property’s size, location, and number and type of tenants that the property currently has. In addition to these somewhat basic factors, you also need to consider the following:
Charging by usable square footage: This is the amount of space that the tenant uses alone, not including common areas that any tenant can use. So in an office building, it would be the actual office space versus the building’s lobby.
Leases are much more complicated: There are multiple ways to enter into a commercial agreement lease, here are three primary lease structures:
Triple Net – Tenants pay their base rent plus taxes and insurance on the building. These are the most common types of leases.
Full-Service Gross – Tenants pay the landlord on fee, and the landlord is then responsible for all other expenses like taxes, insurance, maintenance, and utilities. These types of leases are common in office properties.
Modified Gross – Landlords pass on some but not all of the cost of utilities, maintenance, janitorial, etc.
As the landlord, you will have to figure out much to charge for base rent and calculate how much the additional expenses will be. You still want your lease price to be attractive to potential tenants and competitive against other property managers.
Something else to consider is that commercial leases tend to last for more extended periods of time. Typically the lease period can be three to five years, so it is imperative to choose an amount that will hold up to that longevity.
Unless you are a seasoned investor, it may be wise to work with a property manager to help you with the day to day dealings. They can even help you determine how much to charge in rent.
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There is So Much to Consider, and I’m Overwhelmed
Looking at all of these factors is overwhelming. Rental rates can change by the week, and doing all of this research only to find that prices have increased or decreased before you can get the property listed can be discouraging. It is essential to understand why prices change so quickly. Like any other product on the market, supply and demand is always a factor in how much something costs.
Some landlords may choose supply and demand as the only factor in determining a rental rate. Others may place their rates somewhere in between the neighborhood market rate and HUD’s fair housing rate. Whatever strategy you choose, make sure your property stacks up to other properties in the area and you should be okay.
Final Thoughts
Pricing your investment property, be it residential or commercial, is one of the most important factors in being a successful investor. If you do not charge enough to cover all of your expenses, you will lose money making your investment a bust. Very simply, look at the current market rates based upon the size and condition of your property in order to determine how much to charge for rent.
Joe Arias
Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors.
RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.
Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.
“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”
From a young latino immigrant to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.
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register for our next virtual and in-person events. For all the details,
please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
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Discover America’s Top 10 Real Estate News this Season
U.S. Home Sales Fell To Near-Record Levels
U.S. home sales fell to near-record levels in May 2024. Sales came in at 408,000 in May, which was the lowest monthly total other than May 2020 in the early days of the pandemic and in October 2023, when mortgage rates shot up to their highest rates since the early 2000s. Despite the low number of homes sold, prices reached record levels of almost $440,000.
America’s New Tallest Skyscraper
Move over New York and Chicago, a new city has plans to build the country’s tallest skyscraper. Plans have been launched in Oklahoma City for a 1,907-foot skyscraper that would be taller than New York’s World Trade Center and Chicago’s Willis Tower. If actually built, the $1.2 billion project would include two apartment buildings, some low-income housing, a hotel and condos. Construction is scheduled to start in late 2024.
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California Median Home Prices Hit $900,000
For the first time, median home prices have hit $900,000 in California. According to the California Association of Realtors, the median sale price of a home in California soared to $904,210 in April — up 11.4% from the year prior.
Amenities Today’s Home Buyers Want
It seems that home buyers no longer want granite countertops and wall-to-wall carpeting. According to a recent survey, today’s buyers are looking for open floor plans, double vanities and quartz countertops.
Some Good Real Estate News For Justin Timberlake
Justin Timberlake finally got some good news with the sale of his 127-acre horse farm for a staggering $8 million. Located near Nashville in Franklin, Tennessee, the property was originally purchased by Timberlake and his wife, actress Jessica Biel, in 2015 for $4 million.
Florida’s Next Beach Boom Town
Even though it has one of the country’s best beaches and is located next door to Fort Lauderdale, even the spring break kids stayed away. Now Pompano Beach condos are the hotbed of new South Florida construction, with a dozen new projects, including both Ritz Carlton and Waldorf Astoria residences, under construction or in the pipeline.
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U.S. Home Inventory Coming Back
After years of home-listing declines, the U.S. market is finally starting to turn around. May was the seventh consecutive month of homes-for-sale increases, and there are currently 35% more homes on the market than last year.
Free Pennsylvania Summer Home – 17 Rooms
The historic Hood Mansion in Limerick, Pennsylvania was built in 1834 by John McClellan Hood, an Irish immigrant, as a summer home for his large family. Known as “Bessie Belle,” the 17-room mansion is free to anyone who can move it. The Eastern Pennsylvania Preservation Society hopes to find someone soon, before the home is torn down to make way for a warehouse.
America’s Dirtiest Towns
According to a recent analysis, America’s dirtiest cities are San Bernardino, CA; Detroit, MI; and Reading, PA. The findings are not based on litter but are based on factors such as air quality and drinking water. The cleanest towns are Lynchburg, VA; Duluth, MN; and Redwood, CA.
TopTenRealEstateDeals.com is a different kind of real estate website that focuses on both home sale news and entertainment. They cover real estate sales data and trends, but also historic, celebrity, and spectacular homes. For more interesting real estate news, visit TopTenRealEstateDeals.com.
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