WHY USE PRIVATE MONEY LENDERS?

 

WHY USE PRIVATE MONEY LENDERS?

1. Private lenders for real estate are offering competitive interest rates

Since a loan on an investment property is secured by a recorded Deed of Trust, private lenders can offer interest rates that are competitive with the open market.

Additionally, since private lenders for real estate are looking for investment properties, they are more likely to offer these rates on properties without a current cash flow than traditional banks, which are still restricting lending.

2. Private Money loans are faster and more flexible than other loans options

Since private lenders use the same investing principles as you do, they can make a quick decision, allowing you to avoid the long process of traditional bank underwriting.

3. Private lenders’ debt service coverage ratio is less strict

Since private lenders do not have the same underwriting process as traditional loan servicing arrangements, they have more flexibility to look at other factors influencing loan repayment.

4. Offer shorter terms

Working with private money lenders offer shorter terms to allow you to secure the property, avoid prepayment penalties, and look to traditional financing once the property is stabilized if necessary.

5. Real estate provides you better access to loans

While keeping traditional loan benefits. With private loans, you still have the same protections as with traditional bank loans, but are able to take advantage of a hard money loan process that moves more quickly and is inherently more flexible than conventional permanent financing.

6. It is less frequent for private loans to be packaged and resold

For real estate, they look specifically at you and your property to make an investment decision, and once they have found a good risk they are unlikely to sell their investment. This allows you a measure of confidence which you will still be doing business with the same partners for the life of a loan.

Even though cash buyers are a great resource for funding and buying real estate, Private Lenders are able to provide investment resources above and beyond what a typical cash buyers may be able to provide.




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PRIVATE MONEY LENDERS - REAL ESTATE SOLUTIONS

 

PRIVATE MONEY LENDERS - REAL ESTATE SOLUTIONS

The coronavirus pandemic has thrown a monkey-wrench into all facets of life, including paying rent or the mortgage for some which includes real estate investors.

The real estate investment outlook prior to the coronavirus pandemic was looking pretty good with low interest rates, and new home construction still doing well. Fix-and-Flips were on the rise and rentals, though increasing, still were becoming occupied.

However, since the coronavirus pandemic, real estate businesses have either accelerated the growth of their real estate businesses or have watched their real estate businesses decline.

The coronavirus pandemic has impacted all businesses, with smaller companies being hit harder, especially companies with fewer than a couple dozen employees. Why?

Because a small business with fewer than a few dozen employees typically lacks cash flow and capital. Those companies were the first to reduce hours for employees or lay off employees. Those businesses were also the first to stop hiring subcontractors.

With the U.S. officially in a recession, millions of people are suffering.

And acting with compassion over the next 6-12 months is key, whether it is towards homeowners or landlords in trouble or renters having issues making payments.

However, for individuals who are properly positioned as real estate investors, the next few years will spell out O.P.P.O.R.T.U.N.I.T.Y

Even if the extra unemployment benefits and eviction moratoriums currently sun-setting get extended, they will expire eventually.

Between landlords having trouble collecting rents and homeowners in forbearance accumulating a pile of debt, there will be more distressed sales coming online.

Rentals will become cheaper…

And fix and flips will have less “newbies” competing for them.But…because of our housing shortage and continuing low interest rates, people will still buy your fix and flips (if you’re still in business).

The question is, are you going to be positioned to take advantage of these opportunities? Unfortunately, when the housing market softens or does anything resembling a crash, traditional financing dries up.

Hard money lenders go out of business left and right because they have lent to the wrong investors and banks get scared. So they pull out of lending on anything that’s not deemed “very safe”… They cancel credit lines, stop lending on construction or rehabs…And generally just crawl into a corner in a fetal position…(try to picture a “bank” in a fetal position…pretty funny).

That’s the hilarious thing about “Times of Opportunity”:

Most people get scared exactly when they should be entering the market in full force! So how do you ensure that you can still close on deals when all the dummies run for the hills?

Answer: Private Money Lenders

If you have solid private lending relationships, you will be able to pull the trigger on any deal you want. No matter what the market is doing or how many hard money lenders are filing bankruptcy.

1. Private money is personal.
2. Private money is flexible.
3. Private money is crash resistant.

If you BRRRR deals (Buy, Rehab, Rent, Refinance, Repeat), private money is crucial for short-term funding.

If you do fix/flips, private money is a FAR cheaper alternative to hard money and less risky. And if YOU are a good, honorable steward of that money, it will keep flowing to you.


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12 Tips to Make Money in Real Estate

12 Tips to Make Money in Real Estate

When you invest in real estate, you invest in something tangible. You can look at it, feel it, drive by with your friends, point out the window, and say, “I own that”. For some people, that’s important psychologically.

Real estate investments have traditionally been a terrific inflation hedge to protect against a loss in purchasing power of the dollar.

When it comes to real estate investing there are multiple ways to earn a dollar. Here are

12 tips to make money in real estate.

1. Taking calculated risks by implementing the LOANs strategy
This is a real bonafide strategy. Using other’s money can help you get started. You can make a fortune in real estate by taking out loans. You might not even be able to get a credit card so you try to put deals together with no expenses other than a phone number.

If you are going to own real estate, on the other hand, then you need to be prepared to take out a lot of debt — or leverage — to finance your property with the least amount of down payment. This can be risky because there are laws stating the minimum that you must put down to buy property in different jurisdiction. Some articles recommend risking it all by taking out credit cards. This is fine if this fits your appetite for risk and using hard money. Just be respectful of the fact that you have to pay this money back. In most cases loans with higher interest rates are meant for short term uses. Some people buy their property free-and-clear.

Leveraging Other’s Assets Now Strategy

2. Care about your tenants by improving your property
What’s the point taking all of the risk if you don’t care about the property?

Many investors don’t care about the condition of the property. They care about getting paid. Some investors would rather offer discounts on rent than make an improvement to their property. This tells me that they are undercapitalized or just aren’t good business people. If you want to invest in property you should care about making improvements to it to optimize the property’s value.Plan for your property to be damaged, budget to repair your property, and take people to court to recover costs. Real estate is built around contracts. If you want to enforce your contracts you have to take them to court often to get liens, judgments, and help getting tenants out of properties. Make sure to talk to your lawyers.

3. Condos vs SFR (Single Family Residence), make for better rental properties
What property type should you choose? Your property type should depend on the real estate itself, however most real estate professionals prefer a specific real estate niche. If you are in real estate you have probably heard the industry adage, “Never fall in love with real estate…fall in love with the ROI.” So what real estate ventures can provide a return on investment (ROI) a real estate investor can love? It’s been said by sites and realtors that condos make for better investments than single family residences, however, it really is based on the numbers. Decide whether you are a cash flow investor or capital gains investor, analyze your deals and make your decisions. It seems that mobile homes and mobile home parks are popular right now.

4. Find partners that you can trust
At some point during business growth, it may make sense to take on a partner. Too much work, you’re stretched too thin, missed opportunities. A good business partner may be the solution – and you can take a day off once in a while.

Finding a business partner is a lot like finding a partner in life. A solid foundation is based on trust and respect for each other. Your business partner will be an integral part of your life.

Finding partners you can trust is a key element for all types of relationships in real estate. Like all relationships, business partnerships are built on trust and mutual value. The beginning phases of these relationships are critical to establishing that trust and value. You need to prove to a potential partner that working together is in both of your best interests, right from your initial conversations.

Eight Ways To Build Trust-Based Relationships With Potential Business Partners

5. Diversification is key
Diversification is important, as with any investment, so plan to buy lots of property, a big portfolio of real estate assets, or do deals. If you do deals by being the middle man, you only need a few good connections to strike it rich. Consider investing in assets outside of real estate to diversify as well.

6. Start local
Robert Kiyosaki mentioned in one of his real estate courses to focus on your local neighborhood and get to know the market well. Focusing locally is a great strategy because you are not far from your property and know what is going on. It can be more difficult doing out-of-state deals because you have to build trust with the people you are dealing with at a distance. It’s good to be able to fly to meet cash buyers and motivated sellers face-to-face. Once you connect with buyers and sellers, you can meet them face-to-face — it’s up to you! You have the potential to become an international expert when you start local.

7. Know Your Neighborhood
As we mentioned previously, starting local is a great strategy. Get connected with local experts who know about the specifics of each neighborhood before you invest. There are such drastic demographic changes between close neighborhoods in the U.S. that it’s good to know people in those locations who you trust, you can joint venture with or consult and to visit those locations yourself so you can see the difference in the areas which you are investing. Some of you invest in such big packages which make it prohibitive to visit every single neighborhood but it’s a good idea for smaller investors to visit where they are investing. Even some coaches visit where they invest.

8. Find a niche
Finding a niche is really important. You do not need to be expert in everything. You need to be exceptional at a few things and customers will buy, tenants will rent, cash buyers will invest. You can try to be an expert in many phases of real estate, or you can specialize in a niche market and become the authority in that market. There are many highly successful real estate agents and brokers that have narrowed their real estate marketing niche focus to a specific geographical area, a type of property or a category of consumer. Recognizing the opportunities that are out there and selecting a niche that appeals to you can be a lucrative strategy. Here are just a few niches to get you started…

• For Sale By Owner Properties (FSBO's)
• Resort and Vacation Homes
• Hispanics are a growing home-buying group.
• More and more Singles are buying homes every year.
• Baby boomers, or Seniors are a huge market influence.
• Luxury Homes - A market requiring specialized skills and money.
• Condominium buyers and sellers offer a great niche opportunity.

9. Pick Trending Markets
In tip 6 remember Robert Kiyosaki mentioned to focus on your local neighborhood? Contrary to starting local, Forbes recommends going where the money is. In this article, David Lichtenstein recommends following hot industries in order to know where prices will go up. He believes that trend spotting is very important to accumulating wealth in real estate quickly. Getting a jump on the upcoming trends can have a positive financial impact on your real estate business. Here are Housing Market Predications for 2019.

10. Have good tax accounting
Claim capital expenses on your taxes to defer paying taxes. Rollover your properties to new investment properties so you don’t have to pay taxes on the sale of one property when upgrading to a bigger one with more doors which cash flows better. Learn the different tax laws in each market so that you don’t miss out on investing in all of the hot markets with the biggest price appreciation. Consult your tax professional.

11. Get control of as many properties as you can while mortgage rates are at historical lows
Debt is still debt. You have to be careful of taking on too much debt because interest rates can rise and you can be over leveraged, unable to refinance, and go bankrupt. With so many countries going into negative interest rates, who knows where interest rates will go. With low interest rates it is more affordable to own property.

Good Debt - There's no better example of the old adage "it takes money to make money" than good debt. Good debt helps you generate income and increases you net worth.

Bad Debt - While even "good debt" can have a downside, certain debts are downright bad. Items that fit into this category include all debts incurred to purchase depreciating assets. In other words, "if it won't go up in value or generate income, you shouldn't go into debt to buy it."

12. Build a lead generation system
“Systems and technology have leveled the playing field.” - Josh Altman, the star of the hit TV show Million Dollar Listing. Some real estate investors have their own IDX integrated sites with lists of 80,000 cash buyers, which really help them, get deals done in their local market when a distressed seller calls them. However, you need to have your own lead generation system to make this happen. Placester provides tools that will help you increase your sales however, look to pay an annual fee of $1,200 to $3,000 if you need an entire IDX integrated site and email marketing. Your real estate leads are your bread and butter. However, you don’t have to start from scratch and you don’t have to pay thousands of dollars to get started. This is why RECBL provides verified real estate cash buyers for agents, brokers, wholesalers and investors to help real estate professionals with real estate ventures. RECBL provides real estate cash buyer packages starting at only $10. Also, with each package, we make sure you are able to access the free real estate property software and free real estate email marketing software.

Here is an article on the marketing trends to pay attention to in 2019.

How much are you going to make in real estate in the next ten years?

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WHY IS IT SO HARD TO FIND CASH BUYERS FOR REAL ESTATE?

WHY IS IT SO HARD TO FIND CASH BUYERS FOR REAL ESTATE?

When first getting into real estate, finding cash buyers for real estate deals can be a challenge or more like a never ending job which tends to have you thinking twice about whether or not real estate is the direction for you; BEEN THERE, DONE THAT.

Locating cash buyers is one of the most important things you can do for your real estate business. The reason is, real estate cash buyers are your customers. These are the people who are going to pay for real estate properties from you. How cool would that be?

Finding cash buyers for your real estate to help you make your first five figure paycheck will motivate you and have you on cloud nine. You’re going to look at that check, you’re going to hold onto it, you may even smell it…but most importantly you are going to feel confident in your choice to move forward in real estate.

First, finding cash buyers in the past was a little more difficult than it is now, however you are in the right spot at the right time to find the cash buyers you need for your real estate. You’ll find a form below to help get you started, and best of all we’ll be upfront as to how much it costs so you know there are no hidden fees…AT ALL! Cash Buyers Lists starting at just $10.  JUST $10!

YES…NO JOKE, $10 but we will come back to that.

FIND CASH BUYERS NOW

There have been multiple ways to locate cash buyers for real estate; Google, Bandit signs, software, classified ads, Investor friendly agents, Auctions and REI groups are just a few. Well, this will help eliminate all of that.

The best way to find cash buyers is to acquire a list of real estate cash buyers in your state, city, county or even zip code. If you want to locate cash buyers for real estate outside your area it’s just as simple. When you acquire your list, you will see everyone on your list has purchased properties either as an individual or as a legal real estate business entity, so you know these are the type of people you want to start a relationship with.

Now after you find these real estate cash buyers you want to send them a letter or a postcard or in some cases contact them via phone and/or email…however, contacting them via phone can, in some cases, can work against you because there are so many different companies, collectors and solicitors trying to reach these people and sometimes a phone call can be the worse way to make contact.

If you send a letter or postcard you can write something like this;

“Hello, my name is (your name goes here), I am a (your role here: real estate investor, wholesaler, real estate professional) in (give your area) and I have access to properties 20% to 40% below market value. If you are interested in doing business and getting a hold of some of these properties, then give me a call at (your phone number here).”

It really is that simple. Your phone should end up ringing off the hook with people reaching out to you instead of you reaching out to them and that is exactly what you are looking for. So here is how you get started and be prepared to purchase your list today for only $10.

Click HERE and complete the form. Let us know from which U.S. City and U.S. State you would like your list of cash buyers pulled.​

We look forward to helping you in your real estate ventures and hope this gets you started in the proper direction.

Now click HERE and fill out the form to get your list!



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REAL ESTATE - A NEW PATH TO HOME OWNERSHIP

REAL ESTATE - A NEW PATH TO HOME OWNERSHIP

Home Partners of America Creates New Homeownership Opportunities for Consumers While Creating New Business Opportunities for Agents.​

Not surprisingly, renting skyrocketed in the U.S. in the wake of the housing crisis—and whether it’s due to continued financial restrictions, misinformation about options or other reasons, a decade later, a large swath of the population is still choosing to rent.

However, many of today’s renters would likely opt for homeownership given the proper guidance and the right circumstances—and this is exactly where Home Partners of America comes in. Founded in 2012 with the ambitious yet simple mission to make homeownership a reality for more people, the Chicago-based firm offers a simple solution to put people on the path to buying a home.


Continue reading >



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FREE HOUSES - INSANE THINGS PEOPLE WILL DO OR WON'T DO FOR A FREE HOME

FREE HOUSES - INSANE THINGS PEOPLE WILL DO OR WON'T DO FOR A FREE HOME

From fast food only to zero communication, most would give up plenty for a free dream home.

Unlike buying a car or paying for a vacation, home buying is clearly an emotion-fraught enterprise.​ There's always a catch.

​For instance, someone offers you your dream home — whether it's a villa in Tuscany or a Palm Springs mid-century ranch — at zero financial cost to you.

But you'd have to give up a beloved pet, or turn down a fantastic job. Or cheer for the Cleveland Browns, who didn't win a single game in 2017.

Here's what people will and won't do for that opportunity, according to a survey from United Wholesale Mortgage. To get an idea of how much Americans value the idea of a dream home, the residential lender surveyed 1,002 homeowners and non-homeowners online in June.

Continue reading >




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REAL ESTATE: WHAT BUYERS SHOULD KNOW ABOUT SELLERS

REAL ESTATE: WHAT BUYERS SHOULD KNOW ABOUT SELLERS

The following information is provided by the Center for REALTOR® Development (CRD).

NAR has been administering its annual Profile of Home Buyers and Sellers survey since 1981. The survey has grown from 59 to 131 questions, and gives us great insight into the trends, wants and needs associated with the most significant financial decision of most people’s lives: purchasing a primary residence for themselves and their families.

In this article, we’re going to dig in a little deeper into the findings from the 2018 version of the survey to focus on sellers:

Sellers Are Staying in Their Homes Longer
In the last 30 years, sellers have remained in the same home for longer periods of time. From 1987-2008, sellers stayed in their homes for a median of six years, with the only exception being 1997, when the median tenure bumped up to seven years. After 2008, the median tenure began to increase by one year each year.

By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years. It decreased to nine years in 2015, but rose in 2016 to a median of 10 years, where it remained in 2017, effectively doubling since data collection started three decades prior.

It’s not necessarily clear why sellers are staying in their homes longer, but one possibility for some is that they are waiting for their equity to increase, especially given the economic downturn.

Seller Relationships With Agents Are Steady and Strong
Eighty-nine percent of home sellers worked with a real estate agent to sell their home. In addition—same as last year—90 percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the No. 1 source for sellers to list their homes. Only 4 percent opted not to list on an MLS.

Client referrals and repeat business are the predominant ways sellers find their real estate agent. Most sellers—85 percent—said that they would definitely (67 percent) or probably (18 percent) recommend their agent for future services.

Sixty-two percent of sellers were “very satisfied” with the selling process; 26 percent were somewhat satisfied. Only 13 percent were dissatisfied with the process.

Key Skills Sellers Want in Their Agents
Sellers place high priority on the following five tasks: market the home to potential buyers (21 percent); sell the home within a specific timeframe (20 percent); price the home competitively (18 percent); find a buyer for home (15 percent); and help fix the home to sell better (15 percent).

The reputation of the real estate agent was by far the most important factor when sellers selected an agent to sell their home (34 percent). Sellers also place value on the agent’s trustworthiness and honesty (18 percent) and whether the agent is a friend or family member (16 percent).

FSBOs Are Decreasing
In 1981, FSBO home sales accounted for 15 percent of all sales, and agent-assisted sales accounted for 85 percent. FSBO sales have declined over time, and in 2017, FSBOs accounted for 8 percent of total home sales again for the third year in a row. This is the lowest share since data collection began.

FSBOs typically sell for less than the selling price of other homes. For FSBO sellers, those who know the buyer tend to have higher median household incomes compared to those who did not know the buyer. Where FSBO sellers knew the buyer, the time on market for the home was usually a week, and sellers received 100 percent of the asking price.

To learn much more about sellers and seller representation overall, please consider checking out the education, benefits, and resources offered by CRD and its SRS Designation. In July, the featured 25% OFF course at the Center for REALTOR® Development is the Seller Representative Specialist (SRS) Designation Course, which is the basic requirement toward obtaining this credential.

For more information about other courses and programs, please visit the online learning portal from NAR’s Center for REALTOR® Development (CRD) and the Learning Library. Here, real estate professionals can sign up for online professional development courses, industry designations, certifications, CE credits, Code of Ethics programs and more. NAR’s CRD also offers monthly specials and important education updates. New users will need to register for an account.




Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.







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Real Estate Industry and the New Normal

Real Estate Industry and the "New Normal"

This month’s National Association of REALTORS® (NAR) Power Broker Roundtable discusses the evolution of the industry’s “new normal.”

 MODERATOR: ​​​Christina Pappas, District Sales Manager, The Keyes Company, Miami, Fla.; Liaison for Large Firms & Industry Relations, NAR

 PANELIST: Sherry Chris, CEO, Better Homes and Gardens Real Estate, Madison, N.J.

 PANELIST: Joan Docktor, President, Berkshire Hathaway Home Services Fox & Roach, REALTORS®, Devon, Pa.

 PANELIST: Long Doan, CEO, Co-Founder, Realty Group MN, Coon Rapids, Minn.
________________________________________________________________________________________

Christina Pappas: Everything old is new again. The saying comes from the lyrics of a Peter Allen song originated nearly 40 years ago, but the words were never truer than they are today, especially in the real estate industry, which has changed and reinvented itself over and over since the term “REALTOR®” was first coined way back in 1916.

So what exactly is traditional real estate? Is it relevant in today’s world? What do we mean by “the new normal”—and where is the industry heading? For answers—and some very well-informed interpretations—we’ll be speaking with three industry leaders who are positioned on the forefront of change. Sherry, you’ve been a real estate innovator through several cycles of change. What do you see as today’s new normal?

Sherry Chris: Well, I can’t go back to 1916, but I have been around long enough to see how the industry has turned upside down with the advent of modern technology. In the early days of technology application, consumers would search our websites on their own and perhaps eventually call an agent. Today, we can give our agents the edge through the use of predictive modeling. We can use Smart Bots. We can match up artificial intelligence (AI) with a treasure trove of deep, rich data to determine the habits and patterns of potential buyers and sellers, so that the agent can be the first to reach out with exactly what that consumer is looking for. That’s the direction we are taking, and we’re investing heavily in the effort. But to speak to your “everything old is new again” reference, Christina, the truth is that regardless of the impact technology is making, the agent was, is, and should be the trusted advisor at the center of every transaction.

Joan Docktor: I agree. Today’s new normal combines the best of traditional real estate—that is, building relationships and giving every consumer the best possible buying or selling experience—with everything that technology can offer to accommodate and advance those goals. We are using AI to make our agent CRMs smarter—to give our agents more and better information and to keep them front and center with consumers. We’re also in the process of developing Chat Bots, or Smart Bots, to reside online and answer consumer questions 24/7—and, more important, to connect online searchers with knowledgeable, live agents.

Long Doan: Of course, technology has dramatically changed the way real estate is practiced today, but that’s only one piece of the puzzle. In my new normal, keeping the agent front and center means more than providing tools; it means creating an environment where the broker works for the agent, and not the other way around. Our goal is to provide a business platform that includes technology, as well as marketing support and coaching, to help every agent become the CEO of his or her own business—and we are turning the traditional commission structure on its ear with a 100 percent commission and a flat fee. In my view, that’s the way to produce dedicated and competitive agents who perform at peak levels.

CP: There’s another way the industry is changing, and it has to do with physical footprint, both in terms of space and layout. Shrinking office space was a natural byproduct of the last industry slowdown, but what may have begun as an economic need is giving us a new-normal benefit. In our offices, for example, cubicles are becoming a thing of the past in favor of open spaces—almost like a Starbucks atmosphere—that are flexible and that definitely create a more congenial business setting.

LD: I think that back when cell phones went viral, and everybody became mobile, many agents seemed to want to skip the office in favor of working from home. But now, agents are coming back because they miss that interaction. Part of my approach is making the office environment so valuable, so compelling in terms of support, sharing and mentoring, that agents want to be there whenever they’re not out selling real estate.

JD: That’s a good thing, because real estate is first and foremost a people business, both in terms of office culture and in building client relationships. But as more business is transacted online, the new normal also means we need to be more focused than ever on security. Hackers become more wily every day, and many consumers don’t realize just how vulnerable they are. As brokers, we need to have two-step email authentications and other online security measures in place to help keep consumer information and all our data as safe and secure as possible.

SC: And yet all of that is in the background, as far as consumers are concerned—security, data-mining, even Smart Bots. All most consumers want to know—even millennials, who are the most tech-savvy and who make up the largest segment of homebuyers today—when the rubber meets the road is that their agent is there for them, face-to-face, throughout every phase of their transaction. In that way, traditional real estate hasn’t changed…and I doubt that it ever will.



For more information, please visit www.nar.realtor.





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5 Tips for Small Business Owners

5 Tips for Small Business Owners

RECBL - Real Estate News

So you are now a bonafide small business owner?

When it comes to being a small business owner, there are no shortages of areas to focus.​

Whether you’re a brand new entrepreneur, or a small biz veteran, updating your business best practices can help you stay current, and competitive.

According to Massachusetts Mutual Life Insurance Company (MassMutual), these five tips can help today’s small business owners:

1. Connect with experts. Surround yourself with trusted advisors who have expertise and experience in succeeding the way you define success. Surprisingly, nearly 3 out of 5 (58 percent) small business owners in MassMutuals research turn to their spouse as their trusted advisor for financial and business advice. While this is a positive sign, business owners should look to expand their pool of trusted resources beyond their spouse for diversity of expertise and experience.

2. Succession Plan. Know who your successor is - and prepare accordingly. This includes telling them! The good news is that 2 out of 3 (64 percent) business owners have a succession plan in place for their business- however, 1 out of 4 (25 percent) in line to take over a small business aren’t aware they are the chosen successor. Furthermore, nearly 3 out of 5 (58 percent) family-owned business owners intend to divide business assets up equally among all their children regardless of a child’s involvement in the business. This opens the door to a potentially difficult yet necessary conversation.

3. Understand your value. Know the true value of your business. Nearly two out of three (63 percent) say they’ve had their businesses valued in the last three years. However, 1 out of 4 (25 percent) valued their businesses themselves, which may lead to unsubstantiated valuations.

4. Diversify. Do not put all of your eggs in one basket. While nearly two out of three (64 percent) say their business is their largest asset, this doesn’t mean it should be their "everything." MassMutuals research found that 1 out of 3 small business owners have no assets for retirement outside of the business - and 1 out of 4 (25 percent) said they would have to liquidate assets (business or personal) to meet any tax or fee obligations in the settlement of their estates.

5. Personnel management. Take care of your key employees. Employee loyalty spiked as top of mind for more than half (54 percent) of the business owners in MassMutuals research. Health care, flexible work arrangements and generous salaries topped the list of benefits offered to all employees. However, 1 out of 3 (30 percent) do not offer any special benefits to those they consider key to the success of the business.

Source: MassMutual


Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.

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Running Your Business Like a Business

Running Your Business Like a Business

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development (CRD), with assistance from Lauren Hampton and the Podfly editorial team.

Running your business-like a business-is crucial for getting maximum value out of it, and your efforts. As REALTORS(R), it is crucial to plan and be wise, and to think of yourself as a business owner at all times.

Episode eight of the CRD Podcast is the first of two episodes that explore different aspects of business planning for real estate professionals. Part one is a one-on-one by host Monica Neubauer and an industry expert.

Part two, which will release later this month of December, will be a panel discussion, so you can hear some different opinions on the same topic from peers.

Neubauers guest for episode eight is Mark Given. Given has been teaching real estate courses nationally since 2004. He has been president of and served on numerous committees for REALTOR(R) Associations at the national, state and local levels. In addition to his speaking, teaching, and volunteering careers, Given is a prolific author. Given has a book series about his trust-based business philosophy, and has also co-written four other books. His weekly blog, "Marks Minute," is read by thousands-you can sign up to get on the list on his website. Before launching his real estate career, Given spent 20 years as CEO of a multi-state retail sales and rental company.

Given and Neubauer talk about a number of things that should become part of your business plan: finding a mentor, how to foster a good broker relationship, and the cost of training (or not getting trained) in several areas, as well as niche positions in the market and keeping up with your past clients. They also discuss aspects of building a team and being proactive in your business. Below are some of the highlights and key ideas from the discussion.

Find the right brokerage for you. One of the first things a new agent has to do is find a brokerage firm. You need to find a good fit with your broker, so they can help nurture you and gain momentum. Look for a brokerage firm that has potential mentors, a good educational program, and a culture that connects with who you are. Looking for mentors both within and outside the company is important in getting honest answers to some important questions. Learning to ask good questions is a huge part of the real estate industry.

Budget for periods of uneven cash flow. Understanding the money aspect of real estate is important in showing a profit and actually making money in your business. You likely won’t be closing on any deals right away, and you have to budget for the periods of time that you don’t have any revenue. Some expenses include gas, marketing, MLS and association fees, and other additional business fees. Taking a class that talks about the cost of running your business is a great idea for new agents-you don’t want surprises that might cause stress that would prevent you from performing at your highest level. You also don’t want to get ahead of yourself; don’t spend your earnings before you make them!

Don’t skimp on training. Training should be part of your business plan, as well-and not only for new agents. There is always new information to be learned. It is very beneficial to do more training besides what is required for your continuing education. This can help grow your own confidence, and make your business more successful.

Find your special niche. Most agents run their real estate business as generalists. There are plenty of agents who succeed running their business this way, but Given has found that agents that take the time to specialize in a given niche often become the "go-to" person for that niche. If you’re going to run your business like a business, it’s in becoming really good at some part of a business that you become recognized as the best person for that part.

"Pick a niche and get really good at it and all of a sudden your business can really explode," explains Given.

Develop systems to help your business run more smoothly. It is crucial for people running a real estate business to have better systems. Some of these systems include contact management systems or systems that track your business profit. Your management systems are only as good as the information you put in them. You need to have some systems in place to make sure you’re doing things in a timely manner, and following up with your clients. There are many companies that already have these systems in place-take advantage of them! Start your day by making a plan for what you need to get done that day.

There is quite a bit more helpful information covered in episode eight, and we invite you to check out this particular episode, as well as the seven that came before it, at www.CRDpodcast.com, or wherever you sign up to listen and subscribe to your favorite podcasts. Our goal with the podcast is to support and broadcast great conversations (in a free and easily-accessible format) between and for real estate professionals who want to always keep learning and continuously elevate their practitioner skills.

The Center for REALTOR(R) Development podcast is sponsored and supported by NARs Center for REALTOR(R) Development, an online learning platform designed specifically for REALTORS(R).

For more information, please visit the online learning portal from NARs Center for REALTOR(R) Development (CRD)and the Learning Library. Here, real estate professionals can sign up for online professional development courses,industry designations, certifications, CE credits, Code of Ethics programs and more. NAR's CRD also offers monthly specials and important education updates. New users will need to register for an account.

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How to Win in Business and Life

How to Win in Business and Life

RECBL - Real Estate News

Our society is captivated by winners-the people who’ve achieved success and the American Dream and make the process look effortless. In America, were guaranteed the right to life, liberty and the pursuit of happiness; however, many people feel the American Dream is impossible to reach today.

As an emigrant who came to America from Ireland with less than $100 and went on to build wealth and a successful company, I think the American Dream is alive and well.

With hard work, persistence, and a commitment to learning, success and the American Dream can be within reach.

Here are seven tips that encourage success:

1. Focus on your goals. When challenges arise, think about the impact that reaching your goals will have on your life. This will help you face and overcome any challenges. If you’ve only recently started setting goals, be sure to write them down...and be specific.

2. Have a positive attitude. People prefer to work with positive people, and your clients are no different. A positive attitude helps build relationships, leading to repeat business and referrals. One of the best ways to develop a positive attitude is to fill your mind with positive stories, music, books, etc.

3. Master the fundamentals. The fundamentals are timeless strategies to use regardless of the state of the market. Instead of relying on gimmicks, focus on the basics-the productive activities that have a proven record of creating results (e.g., phone calls, personal notes, monthly marketing materials and small gifts to your top-referring clients). Do at least two hours of lead generation each day, making it one of your top priorities for the day.

4. Be consistent. Consistency builds habits, and to be consistent, it’s important to have a system. Systems allow you to provide excellent service to your clients and stay connected with them long after the transaction has closed. Do the necessary tasks-daily lead-generating activities and asking for referrals-and the results will come.

5. Find a mentor. Successful people are always looking to improve. Seek a mentor who’s further along the path you’re on and ask for advice and assistance. Having a mentor will ensure you stay on the path to success.

6. Do what it takes. One of the common traits found in the stories of successful emigrants is a willingness to do whatever it takes to succeed. Tap into this trait by practicing longer and more often in order to build your skills, and seek out solutions to the challenges you face.

7. Never give up. It’s impossible to achieve anything if you quit when a challenge arises. Determination is crucial when it comes to achieving success.

The American Dream is alive and well, and by practicing the tips above, you can get on the path to achieve success in both your business and personal life. My belief in the American Dream is so strong that I wrote a best-selling book about it: "The Emigrant Edge: How to Make It Big in America," which is in stores and online.

Brian Buffini was born and raised in Dublin, Ireland, and immigrated to San Diego in 1986, where he became the classic American rags to riches story. After becoming one of the nation’s top REALTORS(R), he founded Buffini & Company, an organization dedicated to sharing his powerful lead-generation systems with others. Based in Carlsbad, Calif., Buffini & Company has trained over 3 million business professionals in 37 countries and currently coaches more than 25,000 business people across North America. Today, Brians a New York Times best-selling author and reaches over 1 million listeners a year through his popular "Brian Buffini Show" podcast.

For more information, please pick up a copy of Buffinis latest book "The Emigrant Edge," or visit www.buffiniandcompany.com.

For more information, please visit www.nar.realtor.

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Commercial Real Estate Outlook Remains Strong, Prices at a Standstill

Commercial Real Estate Outlook Remains Strong, Prices at a Standstill

RECBL - Real Estate News

Commercial prices will plateau and may fall in large markets, but secondary markets will experience sustained demand and stable real estate prices, according to Lawrence Yun, National Association of REALTORS(R) (NAR) chief economist.

During a commercial real estate forecast session at the 2017 REALTORS(R) Conference & Expo, Yun and JLL Chief Economist Ryan Severino both expressed confidence that the commercial sector should remain on an upward trajectory, but buyers and sellers could be at odds over price. "The commercial market should expect a standoff between buyers and sellers over price in the next year, which could lead to fewer transactions.

Buyers cannot offer low cap rates because of rising interest rates, and sellers cite the strong economic climate as a reason for high prices. Furthermore, vacancy is falling, yet construction has been lagging because of worker shortages," Yun said.

Yun went on to say that overall, the market is healthy; commercial property prices rose 90 percent in the last seven years, but recent headwinds are developing some ambiguity.

"The economy is quite impressive and gross domestic product [GDP] has grown 3 percent in the last quarter, despite hurricanes and other economic factors," Yun said. "The consumer confidence index is also growing, and the nations net worth and consumer spending are at historic levels."

Yun expects GDP to come in around 2.2 percent for the year and to expand to 2.8 percent overall in 2018, as long as job growth remains solid and construction picks up in both residential and commercial sectors. National office vacancy rates are forecast to remain fixed over the coming year, with rent rising at 2.5 percent per year. The vacancy rate for industrial and retail space are expected to also remain stable, with rent rising slowly at 4 percent and 2 percent, respectively.

Even as new apartment completions bring more supply to markets, the multifamily sector will likely see a vacancy rate remain steady, with rent rising slowly at 3 percent per year. Supported by the ongoing stretch of outstanding job creation since 2010, commercial real estate and vacancy rates, in particular, are expected to be stable across the country. Warehouse vacancy will continue to decrease because of a strong appetite for industrial space, specifically ecommerce and trade.

Yun went on to say that high-tech company expansions, such as Amazon, will have a large effect on regions across the country.

"Depending on where these secondary headquarters land, nearby property owners will experience robust growth and property prices, but renters will indirectly feel a pinch of much higher rent payments," Yun said. Severino joined Yun onstage and delved into the global economy and the performance of major property types.

"Global economic growth is accelerating, and 2018 sees the world’s economic trains running strongly together. Interest rates are also going up but remain low by historic standards," Severino said. Severino anticipates a strong performance from all sectors of commercial real estate, with supply starting to catch up with demand.

"It is important to note that commercial practitioners may be getting too comfortable with the large demand for construction and the great performance of the industrial sector. Furthermore, the suburban market is seeing more activity compared to downtown," Severino said.

Yun also highlighted the current tax reform plan in front of Congress and the impact it may have on the commercial market.

"The industry holds the 1031 like-kind exchange sacred and, currently, it is included in the tax code plan for commercial real estate. This is great news for commercial practitioners and for the industry at large," Yun said.

For more information, please visit www.nar.realtor/commercial.

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7 Easiest Ways to Get Into Real Estate Investing

7 Easiest Ways to Get Into Real Estate Investing

RECBL - Real Estate News

(TNS)-Only 15 percent of Americans are investing in real estate other than their primary residence, according to a real estate investing study by RealtyShares. In fact, two-thirds of Americans believe that investing in real estate is too difficult, too costly or beyond their capabilities. This might be true if they were considering commercial real estate investing, which can be a risky move for new investors, but there are safer options.

What Is Real Estate Investing?
Investing in real estate means buying property to earn income and build wealth, either on your own or with the help of real estate investment companies.

Many investors own more than one property, and their earnings include rent paid by tenants and the equity they build through appreciation. Investment property owners have different tax considerations for their investment properties than they do for their primary residence.

Investing in real estate doesn’t have to be intimidating. Here are seven ways to start investing in real estate now:

Rental Properties
Buying rental property is one way to get started in real estate investing. Buying a rental property starts with choosing the right property, and then finding renters, maintaining the property, dealing with tenants and collecting rent each month.

One stumbling block might be locating an affordable property worth investing in.

"Traditional real estate investing is alive and well, although it’s largely dependent on geography," says Aaron Milledge, founding partner and chief compliance officer of Targeted Wealth Solutions, LLC. "In some places, home prices have appreciated so much that it may be difficult to find a lucrative deal."

Rental properties not only provide rental income, but also tax benefits not available with other investment opportunities. An additional advantage is that you have more control over your rental property than you do over investments such as the stock market.

Live-In Flips
House flipping involves buying a property at a discount, improving it for the purpose of appreciating its value, and then selling it at a profit. A live-in flip is a property the investor lives in while renovating it.

Living in your flip benefits you in two ways: First, you can make money when you sell the house later; second, you avoid having to pay for a separate home to live in.

"Flipping a house-acquiring, repairs, and selling can be completed in six months and result in a substantial payday," says Lucas Machado, real estate investor and founder of Home Heroes, LLC. "Flips can earn tens of thousands of dollars in a short time frame. It’s the best strategy for those that need capital in the near future."

Multifamily Homes
Multifamily properties are buildings which house more than one family. The fact people always need a place to live results in consistent demand for rental units, regardless of the overall economic environment.

Investing in multifamily homes can be lucrative if it’s done properly. Justin Taber, real estate investor and a licensed REALTOR(R) in Ohio, recommends living onsite.

"While you live in this property, you will be living either for free or heavily subsidized by renters," Taber says. "When you move out, you will be making money. In about 30 years, once this property is paid off, your cash flow will be quite substantial-just in time for you to start thinking about retirement."

Crowd funding
Crowd funding is one of the newest and easiest ways to access the real estate markets. Rather than buying an entire property or financing a development project on your own, you can buy into a very small share of a property or project using a real estate crowd funding platform.

Not all platforms are created equal. Look for one led by real estate professionals qualified to screen investments. From there, you can choose which specific real estate investments you want to buy into. Distribution of future gains is proportionally based on the ownership shares investors purchased.

"These private placements are illiquid, though, meaning that you may have a hard time selling your investment if you need to raise cash quickly," says Milledge.

REITs
Real estate investment trusts (REITs) are a special form of security that invests in real estate. Unlike most other investment vehicles, REITs must pay out at least 90 percent of their taxable income as dividends to investors. When you invest in a REIT, you’re essentially paying a professional management team to do the work of investing your money in real estate while you reap the profits of REITs.

REITs are an easy way to invest in real estate because you don’t need tons of money.

"The initial contribution to invest in a REIT is very low," says John Barnes, certified financial planner and founder of The Annuity Assistant. "For example, you could buy shares of a REIT which manages apartment complexes for $500. Contrast this with a direct purchase in an apartment building, which might cost you $500,000, and the many risks that go with it."

Real Estate Wholesaling
Real estate wholesaling is when there is a middleman involved in the transaction between the seller and the buyer, with the wholesaler serving as the middleman.

Kyle Alfriend, owner of a real estate business in Ohio, sums up what it’s like to be the middleman: "You focus on only finding the property, negotiating the price, and then selling that agreement to another investor. This is called wholesaling and requires no out-of-pocket money from you."

The fine line of separation between real estate wholesaling, which doesn’t require a real estate license, and real estate brokering, which does require a license, has led some states to set guidelines for wholesaling activities. Texas law, for example, requires that unlicensed wholesalers disclose their financial interest to prospective buyers.

Rent Out a Space in Your Home or on Your Property
Renting out part of your home or property is probably the most immediately lucrative investment you can make, and you won’t need outside funding or a new piece of property. Instead, find opportunities within the property you already own.

Perhaps you’re a homeowner with a garage apartment that only needs a bit of TLC to make it ready for renters, pr maybe you have a spare room in your home that’s sitting empty. With a little bit of money up front, you can start renting it to a tenant almost immediately. Alternatively, advertise the room as a vacation rental on an online booking site such as Airbnb.

Michael McDonald contributed to the reporting for this article.

(C)2017 GOBankingRates.com, a ConsumerTrack web property
Distributed by Tribune Content Agency, LLC
Source: American Home Shield(R)

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Why You Should Never Skip Out on Lead Generation

Why You Should Never Skip Out on Lead Generation

RECBL - Real Estate News

The real estate industry is full of peaks and valleys. For many agents, these peaks and valleys are often reflected in their incomes, making it difficult for them to build profitable, successful businesses.

Almost all agents find themselves facing one or more of the common challenges of the business, which include inconsistent income, difficulty generating high-quality leads, weathering the emotional highs and lows, lack of structure and inability to stand out among the competition.

If you’re stuck in the cycle of peaks and valleys, there’s one thing that can help you break out: having a system. When you have a system to follow, you have the tools and strategies you need to stay focused and on track to build your business. The right system not only helps you earn more; it’ll help you save time and create consistency and predictability in your business. While the market may experience peaks and valleys, your business doesn’t have to.

Target Market Your Database
The most effective way to build your business is to tap into your existing relationships and ask for referrals. Working by referral allows you to target market your database, nurturing your relationships through consistent contact and providing your clients with valuable information and insight, as well as a high-level of service. When you talk to them, listen for a need you can meet and act on it right away. If your client mentions they’re thinking of replacing the roof on their home, connect them with reputable roofers in your network. Or, if they mention they’re thinking of starting a business, give them a book from your favorite business leaders to help them keep their motivation high. These seemingly small gestures have a big impact and help to build your relationship.

A benefit of building your database with people you enjoy working with is it helps you better manage your time and prioritize your day. You won’t waste time dreading an upcoming interaction with a mean or overly-demanding client; instead, you’ll do your proactive lead-generating activities with a smile on your face. Boost the effectiveness of your interactions by tracking your activities and results; that way, you can see where you stand in your business, tap into more opportunities to connect with your clients and fill your pipeline with a steady stream of leads.

Once you’ve developed a relationship with your clients-whether you’re currently working with them or you helped them buy or sell a home a few years ago-ask them for referrals to other great clients like them. Most people will be eager to refer you to their friends, family and co-workers, if asked. Since "birds of a feather flock together," asking your best clients for referrals helps you ensure youll continue to build a database of great people you enjoy working with.

Lead-Generating Habits Necessary to Success
If you want to succeed, be sure to cultivate these habits. They’re imperative to developing a lucrative and predictable business.

1. Commit to two hours of proactive lead generation activities each day. This includes calling your clients to check in, writing personal notes to thank clients for their business or delivering small gifts of appreciation to your client’s homes or offices.

2. Mail an item of value each month to help you reinforce your character and competence as an agent. While these marketing pieces don’t necessarily have to discuss real estate each time, they should cover a topic of interest to your clients, whether they’re current or aspiring homeowners.

3. Always follow up with a phone call after you’ve sent your marketing piece to see how they’re doing and ask if there’s anything you can do to help. This is the best time to listen for a need you can fill, so listen closely.

4. Send a personal note after you speak with your client on the phone to express how much you enjoyed catching up with them.

5. For your best clients, deliver a small gift of appreciation to their home or office to further build the relationship.

Don’t forget to ask for a referral each time you speak with your clients. A gentle reminder will help them remember to refer you when a family member, friend or co-worker mentions they’re thinking of buying or selling a home. If you’re not sure how to ask, we’ve created a resource to help you start the conversation.

For more information, please visit www.buffiniandcompany.com.

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5 Benefits to Having a Stager on Your Team

5 Benefits to Having a Stager on Your Team

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development, with assistance from Lauren Hampton and the Podfly editorial team.

In episode 7 of the Center for REALTOR(R) Development Podcast, Monica Neubauer has a great conversation about home staging with Helen Bartlett of Kansas City Home Stagers.

Bartlett is a national award-winning home stager and home stylist who’s been staging homes in the metro Kanas City area in both Kansas and Missouri since 2011.

She has been recognized by Houzz with multiple service awards and "Influencer" and "Recommended" badges on her professional profile. Bartlett has also been named as one of the "Top 200 Influencers in the Home Design Industry for 2017," and recently co-authored a book, "Home Staging: The Power That Sells Real Estate."

As a REALTOR(R), having a stager as part of your team can be beneficial for both you and the seller. You will be appealing as an agent if staging is something you can offer your seller, and the stager can also help to share their best advice for the sellers, and that can help preserve the relationship between seller and REALTOR(R). Home stagers are on the same team as the real estate agent, because it’s about making a successful transaction for the REALTOR(R) and the homeowners. Below are five ways that having a stager on your extended client team can be a huge bonus:

1. A stager can provide a general staging consultation. Everyone selling their home should at least have a stager consultation. Something as brief as an hour-long consultation could lead to value in the thousands of dollars and runs at a reasonable rate. For REALTORS(R), you can make a consultation part of your business model, especially if you don’t particularly have an eye for decorating.

2. A stager can help you "edit" current furnishings. When a professional stager comes into a house that’s occupied and needs attention, one of the easier ways to highlight a home is to "edit" existing pieces of the house and de-clutter the house of things that can make the space feel outdated. Painting and updating the light fixtures are two of the least expensive ways to make a home seem relevant. These types of updates can make a home feel move-in ready, and when a home feels move-in ready for a buyer, they are willing to pay more.

3. A stager can help prospective buyers connect emotionally with a property. Home staging is more than just decorating. The difference between the two is a house versus a lifestyle. Staging allows the buyer to focus on the house and their emotional and psychological connection to it. It is especially important to stage a vacant house because when there’s nothing else to look at, the buyer may start to focus on the negative things. Once a buyer is connected to a house, they are willing to pay more for it, and a staged house may sell more quickly.

4. A stager can help you sell the property more quickly. Home staging is preparing your house to go on the market so that it sells quickly and gets the highest dollar by appealing to the most number of people. Some examples of staging are painting, cleaning, making repairs, or updating your home. The goal is to create a warm and welcoming house that will capture a buyer’s attention. Buyers want to see how they can live in that house.

5. A stager can help the seller sell their property for more. Staging usually costs anywhere from 0.5 percent to 3 percent of the list price, depending on where you are in the country. Typically, a staged home will net anywhere from 7 percent to 10 percent more than an un-staged home, which will likely more than cover the staging cost. The home will also likely sell more quickly, which will save you money on holding costs. Every home can benefit from some level of staging. Though it is a sellers market in many places in the country right now, with a little bit of staging, you can get multiple offers, or even over asking price.

Sometimes it can be hard for a homeowner to have a home stager come into their home and tell them the things they should change. Remind your clients that it’s important to keep an open mind, because, in the long run, it’s a service that will help them, and everyone else involved in the transaction. Everyone benefits from successful staging- the seller benefits from a quick sale at top dollar; the buyer benefits because they’re excited about making the space work for their lifestyle; and the real estate agent benefits from the referral business that could come from the successful transaction.

For much more about staging, check out the complete recording of episode 7 (as well as all the others that have been recorded up to now) at the podcast web site at CRDpodcast.com. The links at the top of the page will lead you to the different audio marketplaces where you can subscribe to the podcast: iTunes, Android, Stitcher, TuneIn, GooglePlay-whichever of these you prefer to use for your podcast consumption.

Our monthly podcast focuses on education in the real estate industry. It addresses formal education programs (such as those from NAR) and informal sources of industry knowledge (such as peers and mentors). It’s intended audiences include REALTORS(R), real estate professionals, allied professions (such as appraisers and lenders), educators, education providers, and consumers. To listen or subscribe, visit www.crdpodcast.com.

For more information about our online courses and products for REALTORS(R) and real estate professionals, please visit onlinelearning.realtor.

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