Jul 8, 2016
Most investors can point to a handful of reasons they invest in real estate such as: Cash Flow - The positive cash flow from commercial real estate is a major advantage over owning stocks. . Tax relief - The ability to defer capital gains through a 1031 exchange is not available in stocks. More Tax relief - Depreciation on commercial real estate works to reduce taxable income. Leverage; The ability to acquire an appreciating asset with borrowed funds is unmatched in stocks. I spoke with Doug Marshall of Marshall Commercial Funding to discuss some "Not So Common" reasons why Real Estate investing is more advantageous than stocks. Real Estate vs Stocks Three Uncommon Reasons why Real Estate Beats Stocks: The Commercial Real Estate Market is an inefficient market place. Unlike the stock exchange, where the purchase price is the listed price, Real Estate allows for the buyer to enter into a purchase agreement and a negotiated price. The buyer may have information that is not known to the seller, or that the seller has not yet acted on. This can favor the buyer with the ability to increase the property value quickly.CRE owners have direct ability to influence on the outcome of their investments performanceNo more need for retirement calculators. With Commercial Real Estate you can make a reasonable guess as to how much you’ll need to have accumulated in real estate in order to retire comfortably. ? For more information, go to http://marshallcfblog.com/3reasons
May 23, 2016
It started with a duplex and grew to hundreds of thousands of sq feet in commercial real estate. For over forty-five years, Richard Anderson and his wife have been Investing in Real Estate. Before real estate, Richard learned from his grandfather who suffered some significant losses in the stock market crash. He taught Richard about investing in the stock market and specifically about two stocks: Disney & Woolworth. In a few years Richard had enough for a downpayment on Seattle duplex with owner financing. The duplex needed some work, but he and his new bride were now invested in real estate. They lived in one unit and rented out the other. They were thrifty. Richard did all of the construction work, electrical, plumbing, carpentry and his wife, tended to all of the landscape and gardening. The sale price was $10,000, and the seller carried a note for $9,000. Four and a half years later they had saved some money and sold the duplex for $15,500. Not a bad return almost 50% return in less than five years. The next property was a 13 unit townhouse style apartment building with a courtyard. He and his wife now had two small children, so he converted two units into one unit for additional living space. The lessons he learned from his grandfather, made Richard a cautious investor. After some thought, Richard came to the conclusion, if a depression occurred and he lost everything, what’s the difference if you owe $1,000 or $100,000? Since then, Richard and his wife have invested in; Retail, Restaurants, Apartments and Warehouse from Washington to Florida and several points in between.
May 13, 2016
Weed, Cannabis, Mary Jane, no matter what you call it, there is a growing demand for Cannabis Friendly Real Estate Investors willing to rent to space to cannabis business owners. Retail & warehouse space are in short supply. New legal cannabis business owners are looking for a place to call home near you. I had the chance to speak with Ryan George of 420property.com . Ryan recognized the demand and developed a marketplace for cannabis friendly landlords and tenants to connect. Subscribe: itunes blogtalk radio How big is the legal cannabis business? The National Football League is estimated to generate $12 Billion in annual revenue. The Legal Cannabis business is projected to be a $7.1 Billion business by end of 2016. In its fourth edition of The State of Legal Marijuana Markets, ArcView Market Research predicts that the legal cannabis market will see a massive $21.8 billion in total annual sales by 2020. What are the Challenges? The industry education process is full of industry trade shows, ballot measures, and public discussion. The industry needs legitimate business owners and operators. Financing, Real Estate, Banking are all challenges for the business. For more information go to: www.420Property.com Email: rgeorge@420Property.com Ph: 925-478- 9805
May 6, 2016
The Horsepower of Leverage is the secret sauce in Real Estate Investing. This is the aha Erik Stark and his partner figured out after successfully buying and wholesaling a deal using none of their money. This lesson has proved critical to their growth in Detroit, MI and now sunny Florida. Erik’s experience in flipping goes back to his childhood, riding bikes. He had fun, tricking out bikes he found in the trash and selling them to his friends and others for a profit. Subscribe: itunes blogtalk radio Upon graduation from high school, Erik was all set to start a career in real estate. However, due to lack of interest, the class was cancelled, and Erik thought it was a sign to run from real estate. A few years after high school, Erik reconnected with a good friend from high school, Steve Mills. They quickly realized they were of like mind in their entrepreneurial spirit. The Horsepower of Leverage. Since their beginning, Erik & Steve have done over 400 flips. They have found unlimited capital to fund their deals, created a top 100 list of target properties they want to acquire including, single family, multifamily and retail. As the margins have been squeezed on flips, they have been able shift into wholesale and development and look elsewhere to expand their real estate empire.
May 5, 2016
Are you an Entrepreneur? When did you realize it? Early on, my guest Adam Cohen, recognized an opportunity others did not. This is a Special Side B, addition to my interview with Adam Cohen. If you have not yet heard the first interview, I encourage you to check it out. http://jdarringross.com/real-estate-investor-instinct-trust-gut/ At the age of sixteen, Adam had what every sales person or business owner dreams of. Unlimited demand and no competition. Subscribe: itunes blogtalk radio Adam was one of the first to have a cell phone. When they first came out, everyone wanted one, but did not know how or where to get them. Since Adam had one, everyone asked him to get them one. When asked how much, he threw out a price that was ten times his cost, and nobody flinched. The phones cost him £500, and people were willing to pay ten times that: £5,000. Before long, Adam had a closet full of cash and a curious father. Soon he opened his first store, against the recommendation of friends who thought he was crazy. Crazy like a fox. This was the beginning of Adam’s recognizing what others do not, And most importantly, acting on his gut instinct. Adam sees things differently. He has the ability to see things differently. To go in when others say it can’t be done.
Apr 29, 2016
His instinct told him to put his hand up at a real estate auction. That’s when Adam S Cohen became Real Estate Investor. He knew the street and what recent sales prices were, and rolled the dice. Subscribe: itunes blogtalk radio Instinct is something you have or you don’t. Adam has it. He has a sense of things that are not learned in a book. Investors know, there are lessons you learn only after you jump into a deal. Most beginner investors spend days, weeks and more trying to figure out the numbers and if they can make money. Adam has the ability to see the opportunity and act. This ability has enabled him to see the situation for what it is. He identifies who needs to get out and a way for them to get out with some dignity a way for Adam to win. Lesson he learned; don’t use all of your cash to get into the deal. You need leverage to grow. Initially , Adam acquired properties in smaller coastal towns with few buyers and desperate sellers. This marketplace provided almost unlimited opportunities for Adam. Half of the asking price was a typical offer from Adam. The majority of these were accepted. Today, Adam prefers dealing in US primarily markets; Los Angeles, Miami, New York & Chicago. Reasons to stay in these markets include; higher caliber tenant, built in demand for both tenants & buyers. He likes flips, and buy & hold. For more information go to: http://westoneinternational.com
Apr 22, 2016
Real Estate Negotiations are involved. Negotiations in a Sellers Market can test even the best salesperson. Unlike a market with a similar number of buyers and sellers, a hot market with more buyers than sellers drives prices upwards to points beyond reason. Subscribe: itunes blogtalk radio When a marketplace turns irrational, superior negotiation skills are required to gain a favorable outcome for your client. Leonard Atlas with Mission Profitable Inc is an experienced Real Estate Sales trainer who helps salespeople focus in order to put the majority of their efforts into the opportunities most likely to close. As a teenager in his family business, Leonard observed that salespeople can use very different techniques and be similarly successful. I had the privilege to speak with Leonard and go through his “How to be a Better Negotiator in a Sellers Market” presentation. You can download your own copy of the presentation Knowing your limits ahead of time allows for the opportunity to stop the process with dignity, leaving the door open for a future deal. For more contact Leonard Atlas at: www.Missionprofitable.com
Apr 15, 2016
Beginner Real Estate Investors Jake Stenziano & Gino Barbaro grew their Multifamily holdings to 675 units & $32 Million in 3 years. The first property taught them how to: Collect rentCreate systems necessary for scaling upAdapt quicklyScale upProfessional upAsk the questions to help them buy the property right The property had multiple issues: Weekly rentersNo leasesVacanciesRegular visits from local police The turnaround took almost a year, but the efforts continue to be pay dividends. The problem tenants are gone, the tenants that stayed are grateful they have a safe home. The mail lady is no longer afraid to deliver the mail. Jake and Gino found that the real acceleration for growth comes from networking. Relationships are the keys to getting the first look at deals from Commercial Real Estate Brokers. To establish this relationship, they first had to prove themselves. The only way to prove yourself in Commercial Real Estate: get the first deal done. Once you have proven you are a buyer, and are clear on what you are after, brokers recognize you as a buyer and will bring you deals that fit your acquisition strategy. The Keys to their success: Buy RightManage RightFinance Right. These are the principles behind Wheel Barrow Profits, their number one book on Amazon.com. Value of partners: allows scalability, and the opportunity to get into bigger properties and be more of an Asset Manager than a Landlord. Strategy they use for real estate investing: Value AddBe CreativeLook for stale listings To contact Jake or Gino go to: Jakeandgino.com
Apr 8, 2016
Why do Landlords not require tenants to carry Renters Insurance? SURVEY; APARTMENT FIRES To get a License, you have to have insurance.To get a loan, the Lender requires that you have insurance.To lease a commercial space, the LandlordTo rent an apartment, the Landlord? Why have Residential Landlords, Investors and Property Managers allowed Tenants to go without Renters Insurance? Multiple surveys of Renters confirm that somewhere between 56 to 72% of Renters DO NOT purchase Renters Insurance. I have asked multiple insurance adjusters and firemen what they believe the number is as high as 95% go without insurance. Renter myths on why not purchase insurance: Myth #1: "I don't have enough stuff to need insurance coverage."Myth #2: "Since I am a renter, my landlord will cover property damages."Myth #3: "Renters insurance only covers my personal belongings."Myth #4: "Renters insurance is too expensive." *(US News & World Report) What happens when you have a fire? If your tenant has Renters Insurance, and the Rental Agreement holds the tenant responsible, the Renters Insurance will pay for repairs to your property.If your tenant does NOT have Renters Insurance, you will have additional costs: DeductibleIncreased cost of Insurance due to the claim. If you own multifamily property and do NOT require Renters to carry insurance, I believe you need to ask yourself why. For information on an easy solution.
Apr 1, 2016
Communication changes. What are your Commercial Real Estate Communication Options?continue to change. Until recently, if you wanted Telephone, TV & Internet, you might have had three different providers. Now all three can be provided by anyone of a number of different companies throughout the world. Today, most homes have more bandwidth coming into them than the SUM of bandwidth NASA had twenty years ago. Recently I spoke with Jon Arnold of JA Communications Group Inc about the current and near future for Communication Options in Commercial Real Estate. Cell phones and wireless devices can confuse consumers to thinking there is not a need for a connection to a landline. However the volume of data that is transmitted is continuously increasing and demanding faster transmission rates for more volume, requiring bigger solutions. Communication sales are provided one of two ways: Direct through a provider sales force Through an Agent representing multiple communication companies. The Agent model provides the same cost to the consumer as the direct sales model. The Agent has access to multiple communication companies which allows the agent to assess the client needs and offer a communication company that is a best match. Options for communication connections and bandwidth include: Non-Guaranteed bandwidth provides for only a “best effort “ amount of bandwidth: DSL Cable Guaranteed bandwidth, guarantees the amount of bandwidth provided. Before selecting a service, it is best to have an understanding of what your needs are. CLICK here for the Benefits of working with a Telecom Agent for your CRE.