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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: January, 2016
Jan 29, 2016
Low Income Housing Tax Credits are the funding mechanism for Affordable Housing.    Since the 2008 housing crash, the demand for rental housing has exploded.  The demand has pushed rents to multiple year over year double digit increases in many markets.  Investors and market analyst remain optimistic that for the near future, these trends will continue, as new units are absorbed as soon as they are made available.     Increased rents and stagnant wage growth has lead to a problem of affordability for many renters - Affordable Housing. In my effort to better understand what Affordable Housing, I reached out to experts in Low Income Housing Tax Credits (LIHTC), Nicolo Pinoli & Warren Sebra of Novogradac & Company. There are multiple roads to take when discussing Affordable Housing and Low Income Housing Tax Credits.  We touch on: Funding the development through the LIHTC program Operation of Affordable Housing Who is eligible to rent? ?Only those earning a maximum percentage of the Area Median Income. How the rents are determined? A calculation of 30%, of the tenant’s income? The numbers associated with a sample development of a 50 unit project including: Benefit and Obligation of LIHTC What happens at year 15 Appearance of Affordable Housing: Most newly developed Low Income Housing is impossible to differentiate from market rates properties. Three key ways LIHTC are lost: RENT; Charging more than the allowable maximum rent for a unitTENANT INCOME LIMITS: Documenting tenants income when first rentedHABITABILITY: Failure to maintain the units for residents to live For more go to: www.novoco.com
Jan 22, 2016
Senior Housing Investment Opportunities - Have you considered these?   Investing in Real Estate requires knowledge of the marketplace; potential renters, who they are, what they want and their economic abilities. When considering the Commercial Real Estate investment options, you may have looked past the opportunities included in Senior Housing.   The investment opportunity eluded me, until I had the opportunity to interview Rick Lynn with Marcus & Millichap National Senior Housing Group. Senior Housing is an intersection of three markets; Housing, Hospitality & Healthcare. The marketplace is full of investment opportunity.  You can invest directly as a Landlord and lease out the operations to an operator, act as an Owner Operator providing the care to your tenants, or invest through a REIT focused on Senior Housing. There are four recognized levels of operation from least to most care required: Independent Living (IL)Assisted Living (AL)Memory Care Continuing Care Retirement Care (CCRC)This option allows movement from (IL) to (NH)Nursing Home (NH) There is a surge in demand in the Independent Living marketplace to meet the aging Baby Boomers next stage in life. FREE Senior Housing Market Research Report click: http://bit.ly/CREPN-SeniorHousingMarketReport For more information on Senior Housing investment opportunities, contact Rick Lynn with Marcus & Millichap: Rick Lynn 630.570.2228 rlynn@marcusmillichap.com
Jan 15, 2016

To lower your risk in Real Estate Investing, You Need Data. Since 1995, Axiometrics has been providing investors the needed information to make investments based on the most current month end reported data.  Each month, Axiometrics gathers data from over 40,000 professionally managed apartment properties of 50 plus units plus across the USA. Rents for every floor plan offeredOccupancy ratesConcessions Ryan Kimura provides insight on how big data provides the answers investors need to make informed investment decisions in order to maximize the return on investment.   Ryan is the Regional Director for the East Coast and specifically the Mid-Atlantic Region for Axiometrics Inc., headquartered in Dallas, TX. Currently, he assists companies operating in the Apartment and Student Housing space understand how to make the best decisions when buying, selling and managing assets by providing access to better, more accurate data. Prior to his tenure at Axiometrics, Ryan helped a Dallas based private equity hard money lending firm grow from $18MM to over $40MM in less than 18 months by originating transactions and raising capital from equity investors. During his time with the PE firm, he supported numerous aspects of the business including being an integral part of a JV partnership with a large hedge fund to buy, rehab and rent over 1000 foreclosed single family properties in Texas. Prior professional experience included growth and branding of a $500MM self-directed IRA and 401k administrator, from a local firm to a national firm. Ryan also has extensive background in real estate debt from residential to commercial to hard money.  For a FREE sample Market Narrative Summary, contact Ryan rkimura@axiometrics.com (469)621-9635.    

Jan 10, 2016
If you are doing house flips; purchasing fixer upper properties,fixing & selling for a quick profit, your short term profit options can be significant.  Insurance for this is not so easy.   The following are some good first steps: Contract: A good first question to answer: will you be doing the work yourself, or hiring a contractor.  If you are hiring a contractor, the best practice is to have:? contract in place with the contractor specifying Insurance requirements Insurance covering: Property: The proper form of Property Insurance for a renovation project is a Builders Risk Policy.  This provides coverage from the acquisition value of the structure through the completed project value.  It satisfies the requirement from lenders when required to provide proof of insurance.   Liability: Depending on the work that will be done and who will be doing, and the controls you have in place to minimize your risk, you will need to have some Liability Insurance. Premises Liability is the basic trip and fall coverage should anyone get hurt at the premises described on the policy.  This is a must, and very reasonably priced.  Completed Operations is the best option for coverage, especially if you are performing major renovations including the envelope of the building that could result in future damage to the structure. If you have any questions regarding your Quick Flip operations insurance needs, give me a call. For a sample contract and certificate example, click here. 
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