A hefty amount of dollars spent by the local government on local development is a sure sign of the revitalization and further development of an area which means that real estate is about to take off in terms of supply and demand.
2. A jump in commercial funding
The relocation of large businesses, the opening up of offices and an influx of new business in an area is also a clear indication that domestic real estate will take off as all those workers, office personnel and managers will need somewhere to live.
3. Expansion of local transportation
An upgrade of the local transport grid, local transport network and or building of new access routes is an indication of the revitalization of an area.
4. A rise in the local population
An influx of new visitors, a rise in the number of 'out of towners' and a jump in the people who normally live in an area is a sign that the particular market is about to become a real estate hot spot.
5. A rise in investment projects
Any jump in investment projects or any large-scale investment in an area, even if it has nothing to do with real estate is one of the signals that the area is about to become a hotbed of real estate activity and you had better get in there fast.
Want to learn more about real estate markets? Go here.
Webster’s Dictionary would define the word “nibble” as “a small bite”, but to the person buying something, a nibble is a bit different. To a buyer, a nibble is a conscious or unconscious effort to get the seller to take less, and is usually the last effort to get just a little bit more taken off of the asking price. – Real Estate Club
“The Nibble”
The Nibble is a negotiating tactic.
Once you have the deal signed and finalized, if anything surfaces that you weren’t aware of prior to the signing of the contracts, ask the seller for a credit at closing. This information often surfaces after the property inspections, when you receive your Due Diligence verification back.
The most common Nibble
is actually the repair allowance we just spoke of. If there are additional repairs that you were not aware of prior to negotiating the sale of the property, ask the seller for a credit.
Other common Nibbles:
Maybe the rents aren’t as high as the seller stated, or perhaps some of the expenses are higher than you were told. Since your offer was based on the information given to you by the seller, you have the right to go back and get a credit for the difference.
Beware, though.
The reason it’s called a Nibble is that you’re asking for small items, one at a time, nibbling away at the deal. If the seller agrees to each, you may end up with quite a bit. You aren’t asking for anything unreasonable. You’re asking for an amount that may be an inconvenience, but not a deal-breaker.
Nibbles are done after the seller is tied to the deal.
The further along you are in the negotiating process before you request these credits, the more likely the seller will agree. The seller already has plans for his proceeds and just wants to close the deal.
Don’t get too greedy, though.
If you’ve got a good deal, take care in handling your Nibbles. Don’t lose the war because you wanted to win the battle.
Their Plan To Building A Legacy Through Real Estate
Sherry and Laird describe why they came to the Ultimate Partnering Event and how the event surpasses their expectations. They share what their biggest fear was when it comes to investing in multi-family real estate and how they overcame it. Sherry and Laird tell you why they have a favorite training from RE Mentor and what RE Mentor means to them. They offer advice for anyone who is on the fence about getting started investing in real estate. ____________________________________________
Consumers are willing to move—even more than 500 miles–in order to be with a significant other. And the move tends to be worth it, according to a survey by Bellhops, a professional moving company. Bellhops analyzed nearly 2 million online conversations in the U.S. from June 2018 to March 2019 to find themes in moving. “Moving for love” was among those themes they found.
Sixty percent of the people whose conversations involved moving for love are now married or in a long-term relationship, the study showed. Women are more likely to move for love than men.
One-third of the people who moved for love did so more than once too. Fifty-seven percent said they’d do it again, if necessary too.
Americans are willing to move long distances to be with their significant others—44% moved 500 miles or more for love, the study found.
For those who move, the majority rent an apartment. But 25% are so confident in their choice that they skip renting and buy a home in their new location once they move, according to the survey.
When you're starting out, you have very little time and less money.
One option, therefore, is to flip your deal for a quick profit.
Buy and Flip
When I sayflip, I mean you put a property under contract, close on it, and immediately sell it to another party to realize your profits.
To flip a property, you must be buying the property under market value and you then resell it at market value to another investor.
Why would people sell a property to you below the market value?
There are many reasons:
Inherited a property they do not want
Foreclosure
Bankruptcy
Burnt Out Landlord
Profits falling
Estate sale
Trading up to bigger property
Retirement
Need cash flow
IRS tax debt
People sell below market value for these reasons and more. As you can understand by now, I want systems in place to attract these motivated sellers continuously. I discuss those systems in more detail in these videos.
Let's say you find a motivated seller of a three-family property. It's worth $375,000 but the seller needs to get out quickly and just wants what's owed on the mortgage.
(It happens.)
The mortgage amount is $311,000. You agree to purchase the property for $311,000.
You could make your profit on this property in two ways:
You could assign the property to another investor and get an assignment fee, or
You could close on the property and immediately put it back on the market to resell.
The RE Mentor Team has been successfully investing in Multi-Family Real Estate for over 22 years. Some of our experienced investors have bought, sold and/or holds over 8,000 units. RE Mentor has been teaching this system for anyone who wants to discover it's secrets to create lasting cash flow and wealth, for the last fourteen years.
Millennial tenants are becoming more of the tenant market and what they want often requires high tech solutions. Without that technology, they consider you backward or irrelevant, even though you’ve got everything else nailed.
Without technology and growing property portfolio’s you may not be able to keep up, nor satisfy landlords and owners that you’re capable of growth and efficiency.
They’ll likely know from their first visit to your website or conversation on the phone that you’re old school.
Renters love the ease of doing things when they can via their smartphone, on the bus or subway, at work, on the road in their car or at home.
Rental Market Demand
Housing construction starts will grow in 2020 and for the next 5 years.
Renters are weighing the buy vs rent decision, and some will make the choice to buy a home. That will in turn lower rents and raise vacancies.
Your costs will go up and your revenues down.
Large Multifamily Properties
Large multifamily buildings are the trend, due to so much pent up demand for units. Big developments near key transit locations will receive priority from the government.
Analytical skills to properly analyze an asset being considered for acquisition financing are a critical skill set a successful real estate investor or developer must possess. They should also be able to create a business plan and proforma for that asset and calculate expected returns. – Rod Khleif
Seeing What Others Cannot
The ability to see what others can't see is essential. Sometimes the biggest single thing that makes an investment or development work is the vision of the people taking part in the deal. The ability to see the potential in a deal when everyone else can't is one of the greatest strengths an investor and developer can have. – Dan Dutton
Pricing Analysis
Price is the number one driver of sales. A failure to properly understand current market value and future trends will hinder any sales program or investment portfolio from the outset. – Jeremy Finkelstein
Knowing The Market
Investors and developers need to know the market for the type of real estate investment you wish to do. Understand your numbers and ability for ROI. Plan projects within the scope of those parameters. – Timmi Ann Ryerson
Understanding Value Drivers
Identifying currently undervalued assets is key to any successful investment. You make your money on the acquisition. Most fundamentally, understanding value and value drivers are critical to success here. – Brad Savage
Investing in residential real estate is one of the oldest forms of investing — and it’s an asset class worth considering for your portfolio due to the cash flow, tax and diversification benefits it offers. To ensure you invest wisely, research and advance preparation are key.
Real Estate Investing Checklist
Here are the first steps you must consider if you’re thinking about becoming a real estate investor:
Step 1. Research these three questions:
Where are the best places to buy — and how can you forecast demand in the future? Do your homework and conduct market research, and you’ll gain visibility into which locations are established neighborhoods, where the up-and-coming places are and what areas offer the least financial appreciation.
Is now the right time to buy? Pay attention to economic trends and rent activity in the area you want to invest in.
How much leverage can I afford? Know whether your real estate goals are short- or long-term; this will dictate how much debt you can take on when buying an investment property.
Step 2. Gather your financial documents
Request your credit report from all three credit rating agencies: Experian, Equifax, and TransUnion.
Assemble paperwork, including tax returns, W-2 forms from the past two years, current pay stubs, bank statements from the past several months, current asset statements, etc.
Step 3. Speak with a banker or mortgage broker
Based on your income eligibility and credit score, your banker or broker can help you determine how much financing you’re eligible to receive.
Step 4. Know what type of financing is right for your real estate purchase
Research the forms of financing that are applicable to the type of residential properties you’re considering.
Understand how each loan type’s structure and terms will impact your monthly cash flow and your overall return on investment.
Step 5. Build the rest of your team
Select a broker who knows the area you want to purchase in and will give you candid advice you can trust.
Find a reliable real estate attorney and home appraiser (or home inspector) who will help you avoid last-minute surprises during the real estate transaction.
As with many investments, real estate has potential — but that doesn’t mean it’s an assured gain. Use this checklist to take calculated steps, make careful choices, and weigh the costs and benefits of your actions before making an offer.
If you’ve got a smartphone then you can work remotely, it’s as simple as that. Add on some other tech, like a laptop or tablet, download some business apps and you can quickly turn yourself into a remote working powerhouse. And, with times that are changing rapidly, it's likely that more and more of us are going to want to seize the opportunity to work from home or another convenient remote location.
Remote working isn’t a new phenomenon and lots of freelancers and small business owners have been earning a living this way for years. However, bigger businesses with lots of employees are seeing that sending everyone home to work remotely can, and does work effectively. While you might expect it to be counterproductive, many businesses that have adopted this way of working have claimed to see productivity go up, rather than down.
Type of work
Setting yourself up for remote working is, naturally, easier for some vocations than others. If you have to deal with customers face-to-face then it’s going to be difficult, but in difficult times people are also prepared to compromise. As a result, and thanks to technology, you can actually carry on with many jobs using connectivity as your secret weapon even if you’re not actually in the same room as the person you’re dealing with.
So, if you're looking to work remotely then the first thing you’ll want to think about is how you’ll be connected to the rest of the world. Secondly, you’ll want to decide what kind of device you’ll use to communicate with your global audience. Once you’ve worked that out you can then go on to select the additional tools that you’ll need to get up and running and keep things ticking over.
Essential tools
As we said at the beginning, you can actually carry out most remote working tasks on a smartphone, although for a little more usability you're probably going to want a laptop, desktop PC or a tablet. With the hardware in place though you’ll want to turn your attention to software. This is where remote working really comes into its own, as there is a wealth of options at your disposal.
If you're a freelancer then invariably it’s all about the bottom line, so lookout for free alternatives to Microsoft Office and Adobe Photoshop. Alternatives do exist and some of them are very good indeed. However, be ever-watchful of dubious download sites and dodgy-looking programs. Stick to legitimate sites that have an obvious track record. And sometimes it’s worth paying to get the right tool for the job if it improves efficiency and productivity.
Security issues
On a related note: you’ll definitely want to think carefully about staying safe and secure while you work remotely. If you’ve been used to tapping into random free Wi-Fi networks in the past while you’ve been on your travels then you’ll want to rethink that strategy. That’s especially so if you’re going to be remote working and also dealing with client files or private documents from an employer.
In that respect you’ll want to lock down things like passwords and your Wi-Fi router, as well as getting hidden behind a Virtual Private Network. And, while many of us like to skirt around antivirus software it really is worth spending a bit of cash to get yourself behind a firewall and have up-to-date ways of dealing with the latest threats. There are new versions of old threats and an avalanche of fresh security issues to battle daily, so be prepared.
Joining dots
Remote working all starts to come together once you’ve completed the foundation steps, including setting up the hardware and software, and ensuring everything is hopefully safe and secure. From there you’ll be able to start networking online, and for this you’ll find all of the same tools that you’d once have used in a regular office or similar work space.
In fact, working remotely, especially if you’re based in a home office, can actually give you a few more tools to get the day’s work done. There’s regular email as well as webmail, which means you can log in via your browser if you don't want to have a work email client installed. There are video conferencing tools, including the likes of Zoom, which has been enjoying huge popularity recently. And, if you want to use your smartphone less then phone calls can be done via the web too.
Team effort?
While there’s considerably less to do if you’re setting yourself up as a lone remote worker, if you’re part of a team you can work with collaboration tools. Not being in the office means that you’ll have to schedule what needs doing and when, which is where a core handful of software tools can really make a difference to overall productivity.
Slack is one of the best options for coordinating a collaborative effort by several people. If you need to allocate different duties and keep tabs on progress then Slack can prove to be an invaluable tool for the job. Similarly, Trello makes a lot of sense if you’re trying to manage a team and all of their respective tasks. This is also a fine tool for keeping everyone on top of their respective deadlines.
Joined together
While remote working does suggest that it might be a slightly solitary existence, working from home or indeed anywhere else doesn't actually need to be like that at all. As long as you have internet connectivity, which can obviously also be maintained using your mobile phone if you're not in possession of broadband, then clients, colleagues, friends and family are all out there.
In fact, in the case of the latter group they may even be in the room next door. Proof positive that remote working is making the world a much smaller, but hopefully safer place, particularly during the current situation.
