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.
Mar 25, 2016
When you invest in Real Estate, you know that when you sell, you have to deal with Capital Gains Taxes. Traditionally, there have been three options: Sell & pay the Capital Gains Tax Do a 1031 Exchange Do Nothing Rising Real Estate values have compressed Cap Rates, ie 3% or lower. If a seller wants to sell while prices are high, but is unable to find a suitable option for a 1031 Exchange, there is another option: Deferred Sales Trust The Deferred Sales Trust provides the opportunity to Diversify your portfolio Take advantage of record sales prices Convert the real estate into other investment Richard Hershey with WeReduceTaxes.com explains how a Deferred Sales Trust provides an alternative for Real Estate Investors, The Deferred Sales Trust process works similar to a 1031 Exchange with the use of a neutral 3rd party intermediary. There are 3 steps to the process: 1) Buyer & Seller come to agreement on the sales price. 2) Seller transfers the property into the Deferred Sales Trust. 3) The Trust Sells the property to the Buyer. The Benefits of the Deferred Sales Trust: Ability to Sell Real Estate Investment at record highs. Diversification; opportunity to invest in alternative investment vehicles Different life style; ability to get out of the property management business If the property has been owned for a long time, it is conceivable that the property is fully depreciated, and in need of significant capital investment For your FREE copy of “A Way Out Article”for additional information on how this works. For more to to: www.WeReduceTaxes.com
Mar 18, 2016
Alternative Financing is not just for the desperate. Alternative Financing comes in many flavors and forms. Alternative Financing, outside the box - where conventional financing stops, Alternative Financing begins. My guest Brian DeLucia with Arrivato LLC, provided a look inside the world of Alternative Financing provided through private lenders that fills the gap created where Conventional Financing stops. Where does Alternative Financing capital come from? Private funds raised through Ultra High Net Worth Families and Family Offices looking for a return greater than that available through conventional markets and old school brokerage opportunities. Does Alternative Financing equal “hard money”? Not Necessarily. Hard money is typically associated with rates far above the advertised rates, 10% and more. Alternative Financing is often referred to as “semi conventional” with rates between advertised and Hard Money rates. Additional opportunities for Alternative Financing might include: Recent credit challenges of the borrower, if the property is considered stable. Type of property; construction, location, or limited usage. Hospitality properties that have lost their flag and need to update the property Quick closing, ie: within 2 weeks Unconventional / acceptable tenant This type of situation is an excellent opportunity for an Alternative Financing. For more information, goto: http://www.arrivatollc.com/
Mar 11, 2016
The first deal is the toughest. Nobody wants to do your first deal. Do you know what you are doing? Nobody including you know, and nobody wants to find out. So what if you don’t have experience in Real Estate, have no deals under your belt, and still want to get in what do you do? If nobody will give you a chance, how do you get the first deal done? Everyone knows someone in Real Estate and has heard the success stories, and thought, "I need to do that". But who knows the hard work it takes to get in, find capital, find a deal and make it happen? How many have done their first deal? To hear how Jonathan Twombly made it from an unhappy New York Lawyer through his first deal and now a successful Real Estate Asset Manager, check out my interview with Jonathan Twombly of Two Bridges Asset Management. Strategy: Who to work with: Jonathan’s relationships lead him to multiple partnerships enabling him raise capital, find the professionals that lead to the off market opportunities that are saved for proven investors. Where to invest: Knowing the data can go a long way to minimizing the risk involved. Is the area population growing? What to invest in: A, B, C, D class real estate? What are the new projects for working class housing, class B & C? Check out Jonathan’s blog: http://www.themortarblog.com/ & get "The Ultimate Guide: Newbie to New Pro in Just 21 Days!"
Mar 4, 2016
If you are currently required to purchase Flood insurance, listen and you will like what Steve Gill with Flood Risk America has for you about how to save on Flood Insurance. Flood is excluded from any standard property insurance policy. Flood Insurance is a requirement of any mortgage against a property located in the 100 year Floodplain, if the property has a finished first floor is below the base elevation. The Flood Insurance Reform Act of 2012 required that the Flood Maps be updated in an effort to address areas of repeated flooding, and provide an accurate assessment of the risk and the premium needed to make actuarially certain that premiums were adequate for the risk. This new information has placed many properties that were previously above the base floodplain elevation are now under the base floodplain. The change in elevation is resulting in significant increases is Flood Insurance cost to the property owner. Per Steve Gill, owner of Flood Risk America, as many as 50% of the maps inspected by Flood Risk America are inaccurate regarding the building’s first finished floor elevation at the address. When the maps are wrong, providing a Letter of Map Ammendment, LOMA, to FEMA can reduce the Flood Insurance cost as much as 80% or remove the Building from the Flood Zone. Flood Risk America charges a fee equal to 50% of the first year savings. The savings for the property owner continue for years after a successful challenge. SPECIAL OFFER for CREPN Listeners Steve Gill of Flood Risk offering a discount of 20% off the normal fee. To receive your FREE analysis and 20% savings, click the link.
Feb 26, 2016
Restaurants & Single Tenant Leases = Investment Opportunity From coffee to crab cakes, people love to eat out. The World Wide Web’s technology limitations prevent us from the experience of eating, drinking out and interacting with others in a neutral place that you don’t have to clean when you are done. That adds up to why restaurants & single tenant leases are an opportunity to look at.. What's the place that's not home, and not work, but people got to gather at daily? Restaurants! Restaurant owners like the large ticket sale generated by baby boomer guests. While the millennials spend less, they are regulars, spending money multiple times each week, and create significant sales volume. Starbucks is a perfect example; the “3rd place,” as it was described to me by a “partner” employee at my local Starbucks. They recognize their fit in your world; that place between home & work; the 3rd place. Considering the Commercial Real Estate investment opportunities in Restaurants, I sought out an expert in Single Tenant Leases & Restaurant Development, from Dallas, Tx, Pam Goodwin of Goodwin Commercial to learn more. For listeners of CREPN interview with Pam Goodwin, click here to receive your FREE: 26 Lessons Learned From 26 Years in Commercial Real Estate Business
Feb 19, 2016
From Gulf wars to under the Christmas tree in 2015, retailers have declared “2016, The Year of the Drone!” The first time I recall hearing about drones on a regular basis was during the Gulf Wars where drones were used for military surveillance over war zone. Now they are found under the Christmas tree. To learn more about Drones and their use in commercial applications, I contacted Paul Tice with ToPa3d, who uses drones in his 3d mapping business. Drones have exploded onto the scene due to three noticeable improvements: Stability Able to remain steady in the windiest conditions.Capacity to lift is growingUp to 50 lbs = higher image resolution cameras.Cost Savings?High quality output in hours compared to weeks using traditional methods. Laws: FAA rules require there must be a licensed pilot on site with knowledge of air space. Basic responsibility: DO NOT FLY OVER PEOPLE; give way to manned aircraft, and are supposed to stay under 400 ft and not to fly within 5 miles of an airport. Future: LIDAR used to create intelligent models: 3D City ModelingBIM: Building Information ModelsGIS: Geographic Information SystemsMaterials & Energy performance of buildings for a cityUtilitiesUrban planning Fully immersed to understand planning, usage, people Virtual Reality For more information: www.ToPa3D.com
Feb 12, 2016
When a complicated sale can be facilitated by a machine that can interact with the Prospect from the first communication through offer, across multiple channels in real time, that is something BIG. That is Skyler 360. Communication in the sales process has changed. The first sale involved a buyer & seller communicating face to face. Communication has changed. Snail mail, Telegram, Overnight delivery, Voice messages, Faxes, Emails, Texts, Drip campaigns, Video Chat; the noise is loud and the competition for the Prospect’s attention is fierce. You spend money on advertising to make the phone ring. The phone rings. Is it answered? Q: How do you sift through all of the noise to find the BUYERS? Ron Sasson developed Skyler 360 to overcome this problem. Ron had an apartment complex with multiple vacancies. He needed to fill them, and was spending money on advertisements, but his property manager was too busy tending to other issues at the property, and was unable to handle the calls. Assessing the situation, Ron recognized that his property manager needed help. Skyler 360 engages the prospect right away with an appropriate reply to the Prospect’s request for information. A few brief back and forth messages between Skyler 360 and the Prospect, and the Prospect’s needs are easily determined and qualified against available units. Recently, Skyler 360 was reviewed by Inman.com, and the Houston Business Journal. Skyler 360 can work as a standalone or can be fully integrated with MLS, your website, social media, calendar, accounting system; Yardi, MRI, etc. For a Demo: call: 713-322-4146 goto: skyler360