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New REACH Class Announced: Is RealX Real Estate's Next Juggernaut?
Second Century Ventures, the strategic investment arm of the National Association of Realtors, announced its 2020 REACH class. Second Century Ventures has grown to become the most active global venture fund in real estate technology, working with more than 100 firms worldwide. Eight companies comprise the REACH Class of 2020, including:
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What Real Estate Stocks Suggest about Life after Shelter-in-Place
If you are an active trader in the stock market who purchased shares during the free fall, you may have witnessed the greatest gain in 30 years. Many real estate stocks rebounded quite nicely, but others still have much to gain. For the purposes of this article, we are choosing the two-year chart.
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How to Value Investment Properties with Bruce Kirsch
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Elm Street Technology on Acquisition Trail with Fresh Private Equity Bank Backing
Real estate technology firms attracting private equity saw another year of record deal flow in 2019. There was a 105% increase in equity and debt raised over 2018, and there were 78 raises of more than $20 million. For the most part, venture capital focuses on startups, while private equity focuses on companies who already have about $20 million in revenue (or are targeting that run rate in the near future). The firms with lots of activity in the space are Brick and Mortar Ventures, Providence Equity, Camber Creek, Fifth Wall, JLL Spark, Moderne Ventures, Vista Equity Partners, RET Ventures, Vector Capital, and Second Century Ventures. GCA shared this data at CEO Connect in NYC last month.
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MoxiWorks Secures Growth Capital
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Investing in Opportunity Zones
Thanks to the Tax Cuts and Jobs Act of 2017, Opportunity Zones were created with the idea of providing incentives for private investors to revitalize economically distressed communities, rather than using taxpayer money to do so. The main incentive is offering investors a way to shield their proceeds from capital gains taxes by investing those proceeds in these zones and hitting specific benchmarks. Some of you might be wondering how this is different from a 1031 exchange? The key is that these investments don't have to be like-kind exchanges. To learn more about the rules behind these zones, review these frequently asked questions. Now that we know what Opportunity Zones are, and why this act was initiated, lets see how it's playing out in the real world from the perspective of Chad Gleason CCIM, with PENTAVIRATE in Seattle, Washington. Q. From your perspective, why are Opportunity Zones good for the commercial real estate sector and communities in general? A. Anytime you are in a situation where you can have the added benefit and incentive to invest in real estate, it's a great thing. We are working with groups who are looking at exit strategies from properties, but are hesitant to do so due to high capital gains tax costs. These zones offer an alternative to lower, and in some cases, totally negate the majority of capital gains taxes while providing the community with the benefit of improving dilapidated buildings or developing raw land. Q. How are local economic development groups using Opportunity Zones to attract investors? A. I am hearing of tax and zoning incentives being added to the already great benefits of the Opportunity Zones. This could be as simple as upzoning, as is the case here in the Seattle market, or with the addition of new market tax credits to the site, if applicable. Having designated assemblages within the zones are also key marketing tools for sites who are recruiting companies that are looking to develop, move or expand. Q. Let's say I want to invest in a property in an Opportunity Zone. Can I just sell my Amazon stock and take those gains to buy a building? A. There are a few options here: you can place all of your sale proceeds into the investment, partial proceeds or simply your gains from the prior investment. I would suggest sitting down with your REALTOR® and tax specialist to devise a strategy for your personal investment plan. The Opportunity Zone has great value when you are willing to place your funds in the project for up to 10 years. Q. What is your go-to example of an actual project in an Opportunity Zone and what difficulties have investors encountered in trying to set themselves up to take advantage of these benefits? A. I usually don't point to a specific example, but instead try to break down the impact for that specific client. Many investors are not willing to sell due to the large amount of capital gains taxes they would have to pay after the sale, so walking people through the process, showing them the pathway for reducing their capital gains taxes and showing them what that means to them in a cash on cash investment scenario, is the proper way to introduce them to an Opportunity Zone investment. The difficulties have been few outside of the timing of the roll out of rules that are now available to everyone. Over the course of the introduction of the program to the last round of the rules that were shared in May of this year, the relatively new program is only one and a half years old. Q. How are properties marketed differently when they are in an Opportunity Zone and what has been the impact of that fact on potential investors you work with? A. Investors who are aware of the program and are looking to reduce the capital gains tax from a previous investment are now asking about properties in Opportunity Zones upfront in the process. In response, listing platforms as well as the agents using them are making sure that it is very clear their property is in a zone when it is, which makes finding properties easier and connects us to the other data we need to perform due diligence on projects. Q. What advice would you give to a REALTOR® who is counseling a client on the purchase of a property in an Opportunity Zone in order to take advantage of the capital gains incentives? A. Use the information that is available to you through RPR along with NAR, CCIM, as well as your state and local associations. Learn as much as you can about the process, key points and timelines within the program. I strongly suggest you also work with the client's real estate attorney and tax specialists to make sure the plan is right for them. The sale and reinvestment of the client's sale proceeds is an important decision and needs to be very well understood for the success of everyone in on the transaction. See the Commercial Opportunity Zone Layer in action: To view the original article, visit the RPR blog.
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Home Flipping Report Paints iBuyer Story with a Different Brush
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Upping Your Game with Real Estate Investor Content
What is so different about real estate investor website content? It's not as much about different topics as it is about a higher level of content treatment. Don't get offended, but some real estate investors are spending more hours in educating themselves each year than your Continuing Education requirements. They're using their money for courses and taking on risk, and the successful investors are constantly bulking up their knowledge base to reduce risk and increase profits. Do you really want to work with real estate investors? Perhaps you're busy enough that you don't have to. However, if you would like to build a client base of buyers and sellers who need very little hand-holding and bring you repeat business, then investors are desirable. Here are real estate website content hints to help you build an investor client niche.
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Business Intelligence Tools: Investment for 2019
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How to Get Started in Real Estate Investing, According to the Experts
Meet Our Panel of Experts REALTORS are natural entrepreneurs who constantly look to grow their businesses and increase efficiencies. As I travel the country, the most common questions I receive are "How do I break into investing in real estate?" and "Where do I go to get training to take the next step?" So I wanted to talk to the people at the forefront of investment.
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A Realtor's Path from Selling Homes to Investment Real Estate
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Brokers Need to Know that Bitcoin Has an Economic Flaw
...but the biggest gains may be ahead. If you took an economics class in college, you understand that currencies of any type have a relationship between four very important metrics: MV=PQ. M is the total amount of money supply in circulation V is the velocity of money and the frequency that it is being circulated P is the price level Q is the inflation adjusted index of goods and services. The economic flaw with Bitcoin is that you cannot buy much with it. Sure, we hear these isolated discussions about people buying houses with Bitcoin, but those are isolated one-offs. There are companies like Filecoin that pay people in coin for hosting files, another called Steam that allows bloggers to earn coin by writing. Many more are emerging every day, but generally speaking, Bitcoin is investors investing in a currency that nobody uses for goods or services. This is a major problem for cryptocurrencies like Bitcoin and others. Investors Caused the Bitcoin Bubble
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Beyond Spreadsheets with Real Estate Financial Modeling Tools
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Don't Just Sell Real Estate. To Build Real Wealth, You Need to Buy
Real estate offers great opportunities for building your income potential, but as Linda McKissack, owner of McKissack Realty Group pointed out in her recent webinar, "The day you sell your last house is the day you make your last dollar." So selling 25, 50, or even 100 more houses won't change that. For McKissack, the solution was to not just sell real estate, but to invest in it as well. She flipped a few houses when she was just getting started, but found that the real income potential is reached when you hold onto your investments to create recurring monthly income. Using lessons from her book, HOLD: How to Find, Buy and Rent Houses for Wealth, McKissack explained how to invest and earn money even with a zero dollar bank balance.
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5 Ways to Invest Your Tax Refund In Your Business
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Opening Doors to Real Estate Investing
Garland Harris Jr., REALTOR® Masters in Community Development, BA in Architecture from Prairie View A&M University Garland Harris Jr. may be new to the REALTOR® family, but he is already primed to make his mark on the Houston area. By keeping his eyes open for opportunities, he has moved from watching developers as a service provider, to building an investment team and client base driven not only by profit, but also positive community impact. Our conversation with Garland should encourage anyone looking at real estate investing to become a sponge for knowledge and enact a plan for 2017. When did you become a Realtor® and how did you start working with investors? Garland: I joined the REALTOR® family in 2016, but started working with real estate investors in 2014. My first exposure came from working as a design architect for some local townhouse developers. After learning the development side, I gained interest in real estate investing, and became a REALTOR® to get access to data and build relationships with agents, affiliates and lenders. How is working with investors different from working with a client who intends to occupy a property? Garland: The main difference is what drives them to a buying decision. An investor is not focused on things like street appeal, but on how the numbers work and how the investment fits into their overall business goals. Understanding your investor's financial wants and goals is critical.
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Canadian Home Buyers in the U.S.
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Student Housing: the Hottest Real Estate Investment
Multi-tenant rental properties are big, according to a Business Wire press release announcing this latest in real estate trends. What makes student housing in the U.S. so lucrative? It is not simply the ease of renting out student spaces to a captive student audience in need of four walls and a roof each school year. The changing nature of student demographics and preferences is now skewing toward a wealthier market, courtesy of state funding cuts and ever-inflating college costs that are driving up student-housing on the “want list” of successful investors. Forget drab dormitories Luxury apartments are where it’s at, with students in search of buildings close to campus with added security, as well as on-site management and an array of amenities like fitness centers and swimming pools. Supporting the trend? Parents who don’t seem to mind throwing their kids a little extra green to maintain their usual lifestyle. Ditching declining enrollment concerns Despite declining college enrollment, the right type of properties offer success, specifically buildings close to campus at top-tier schools that aren’t suffering the same enrollment pressures of smaller community colleges and four year schools.
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A Look at News Corp's New Luxury Real Estate Portal
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Let's Invest: A Look at Real Estate Stock
There is a small percentage of Americans who pay their bills, fully fund their 401K, fully fund their child's education fund, and still have a bit left over. That extra money needs to go into non-sheltered savings accounts. Where do you invest? Perhaps the safest place for the money would be in a government savings bond. I checked today, and depending on the term of the bond, you might get about 1% interest on your money. If I invest $10,000 at 1%, after 10 years I will have a whopping $11,051.25. Because interest rates are so low, it may make more sense to invest in the stock market. The Dow Jones yield in 2013 was 26.5%. Moreover, if invested in an index like the Dow Jones Industrial average, there was a 2.07% dividend. In other words, investing in the stock market in 2013 would blow away the earnings in a savings bond. Even the dividend alone is double! Suffice it to say, smart money is in the stock market. I use the term "smart money" loosely. There are 30 companies in the Dow Jones. 3M does $30B in sales and earns $6.7B. Microsoft does $77B in sales and earns $8.4B. But the truth is, I really don't know those companies. I know real estate technology companies – Z, TRLA, CLGX, MOVE. Here is how they stack up. So, if I am still trying to be that smart money investor and I look at these four stocks, using the Dow as my guidepost – I but CLGX – CoreLogic – They are the only company with earnings. The company losing the most is TRLA. The company losing the least is MOVE.
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Where Are Real Estate Agents Focusing Their Technology Investments?
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Brokers Finding New Business With 1031 Exchanges
Brokers finding new business with 1031 Exchanges Many property owners see the values of their properties lower today than in the past few years and are reluctant to sell those properties at declined values. Some investors, however, see today as the time to attack the market. Consider the past for a moment. A few years ago, an investor may have sold an investment property that he owned free and clear for $275,000. He could have taken that money, done a 1031 exchange, and leveraged the proceeds into two properties worth $200,000 each. He would have needed additional funds in the amount of $125,000 to achieve this goal, which he would have contributed out of his own funds or, more than likely, borrowed. Once acquired, the investor may have rented those properties for $1,300/month each. The monthly cash flow after debt service may not have been strong, but the investor may have hoped for future appreciation.
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Are You Ready for the Hit to Luxury?
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Where Are Your Advertising Dollars Going?
According to a survey last year by IPSOS Marketing and Media Survey the general business climate in the United States has taken a big turn in deciding how to allocate advertising dollars. The survey indicated a major change in attitude resulting in some significant shifting of ad dollars from one sector to another reflecting new direction.
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