Tag: Commercial Real Estate

What to Do to Save for a Down Payment

On October 15, 2022

You’ve probably saved up for a new car or jewelry, but one of the most important things you can do to improve your financial situation is save for a down payment on a home. It can be hard to set aside a large amount of money for a down payment, especially if you’re a first-time homebuyer. However, following these simple strategies can easily hit your target.

Automate Savings

One of the most critical factors you can consider when setting aside a large amount of money for a down payment is automating your savings. This can be done through several different methods, such as direct deposits and recurring transfers.

Minimize Spending

Before you start saving for a home, you must have a good understanding of your current budget. This will allow you to make adjustments and reduce your spending temporarily. For instance, you can stop buying new clothes for a couple of months.

Increase Income

One of the best ways to increase your savings is by increasing your cash flow. If you feel confident about your current job performance, ask your supervisor about possible promotions or negotiations for a raise. After receiving a raise, direct the new money to your savings.

Another effective way to boost your income is by working a side job. This can be in the gig economy, or it can be in the form of a small business, such as selling products on an online retailer, Etsy. You can also work at a restaurant or shop part-time.

Eliminate High-Interest Debt

Getting into debt can make it hard to set aside a large amount of money for a down payment. One of the most powerful ways to reduce debt is by getting rid of high-interest debt. Refinancing your loans can lower both your interest rate and monthly payments and free up cash in your monthly budget.

Research Assistance Programs

First-time homebuyers can take advantage of various national and local programs that provide down payment assistance. For instance, through the HomeReady Mortgage program of Fannie Mae, you can make a down payment of only 3%.

Consider Retirement Funds

If you’re contributing a large chunk of your income to your retirement accounts, you may want to redirect some of it to your home savings. First-time homebuyers can take out an IRA for a down payment of up to $10,000 without penalty. Before doing this, make sure that a tax professional reviews the details.

Tips for Entering Real Estate Development

By W Darrow Fiedler

On August 15, 2022

In Finance, Investing, Real Estate

There are many barriers to entry when it comes to real estate development. Most of the time, people are not ready to commit to a project due to a lack of knowledge about the various factors that affect real estate development.

Construction of real estate projects can take years, and they usually take a lot of planning and preparation. Even though it can be lucrative, the industry can be very challenging. Due to the fast-paced nature of the business, developers often face unique challenges that keep their operations fresh. Before jumping into the field of real estate development, there are several factors to keep in mind.

Partner with a Mentor

No matter how good you are at technical knowledge, you will need help to operate in the field successfully. Many of the skills that developers use in their projects are learned through failures. Having a mentor can help speed up the learning curve and help you avoid getting stuck with a massive loss on your first few projects. Each deal is different, and each decision point has to be considered carefully. One of the most critical factors a mentor can help you with is navigating through the various decision points involved in real estate development.

Connect with Professionals

Getting a network is also essential to become a successful real estate developer. As a developer, you will rely on the guidance and expertise of third-party consultants during the entire process. A strong network will help you connect with the right people and deliver the best possible service. Usually, you’ll want to work with multiple professionals, such as a general contractor, a civil engineer, a land-use attorney, a lender, and a surveyor.

Make a Plan

Many aspiring real estate developers ask where to start when entering the industry. One of the first steps in becoming a successful real estate developer is establishing a geographic focus. This will allow you to avoid getting stuck in the middle of a multitude of regulations when it comes to developing projects. Before starting a project, you must identify the type of building you want to make. A clear understanding of the type of building you want to make will allow you to focus on the most critical areas.

Set Goals

Getting overwhelmed by the endless tasks that come with real estate development can be a common problem. In addition to finding suitable land at a reasonable price, you’ll also need to secure the necessary financing and develop the property through the eventual disposition. Having a set of goals will help you keep track of your progress and ensure that you’re on your way.

Research the Market

Before you start working on a project, you must identify the building that you want to make. Having a clear understanding of the local property market will allow you to start developing successful projects. Before you start planning a project, it’s vital that you thoroughly research the area to determine the factors that will affect the development of the property.

This step will allow you to collect valuable data to help you develop a successful development plan. Having the necessary data will allow you to make informed decisions and maximize the potential of your project.

Must-Read Books For Real Estate Agents In 2022

By W Darrow Fiedler

On July 8, 2022

In Real Estate, Welcome

The best real estate books are those that inspire you to reach your goals and become an even better realtor. They provide a variety of effective techniques and advice that will help you connect with your customers and improve your day-to-day processes. Besides being able to provide you with advice, real estate books also offer valuable lessons that the authors have learned from their own experiences. If you’re looking for inspiration from people who started at the bottom and became successful real estate professionals, check out some of these great books on real estate.

Real Estate Success In 5 Minutes A Day – Karen Briscoe

Many real estate professionals share the same daydream: “If I only had a few more minutes each day, I would be able to improve my sales and marketing skills”. According to Briscoe, all it takes to become a successful real estate agent is five minutes each morning. How do you spend those 5 minutes you ask? By reading one of the 365 chapters of this book each day, for an entire year.

The Sell – Fredrik Eklund

One of the most prominent real estate professionals in the country, Eklund is known for his unique and entertaining behavior on the hit Bravo show “Million Dollar Listing New York.” In his book, he shares his top tips for becoming a successful real estate agent. The book also features a variety of advice on how to build a strong and effective relationship with clients and earn a good reputation.

Laugh Your Way To Real Estate Sales Success – Cathy Turney

In her award-winning book, Turney shares her thoughts on the humorless world of real estate, showing how funny the industry can be. Unlike the other books that claim to have the “how-to-make-a-million” advice, Turney doesn’t provide the same level of advice. Instead, she shares her thoughts on the little moments that real estate professionals encounter every day. In her book, Turney talks about her journey from being a sales rep to becoming one of the top real estate agents in the country. She also shares her experiences and advice that will help other real estate professionals succeed.

The HyperLocal HyperFast Real Estate Agent – Daniel James Lesniak

In his first year as an agent, Lesniak was able to close over twenty million dollars in deals. He was able to accomplish this through his hard work and dedication, and he shares his strategies and advice in his book “The HyperLocal HyperFast Real Estate Agent.” One of the most important factors that real estate professionals should consider when it comes to becoming a successful agent is mastering the art of local marketing. Lesniak shares his strategies and advice on how to improve his sales and marketing techniques. He also shows how to use a segmentation and positioning process to effectively target his clients.

Direct Real Estate Investing vs. REITS

By W Darrow Fiedler

On February 11, 2022

In Finance, Investing, Real Estate

Many people are confused about how to invest in real estate, as there are many different types of REITs. Real estate investment trusts are corporations that manage properties for investors.

Direct Real Estate

Direct real estate investing is a way to get into the real estate market without having to spend a huge sum of money. It allows you to generate steady and attractive returns by investing in properties that are worth their rental income.

Direct Real Estate Pros

One of the many advantages of investing in real estate is that it can generate substantial cash flow. This can be done through various tax breaks. One of these is depreciation, which allows you to reduce the cost of buying and improving a property.

Even though the stock market fluctuates, the real estate market generally rises over time. This means that investors may be able to sell their properties at a higher price later.

With direct real estate, you have more control over your money and the properties you buy. For example, you can set rental prices, determine how many properties to buy and refinance your mortgage when the market drops.

Direct Real Estate Cons

One of the biggest disadvantages of direct real estate investing is that it requires a large amount of time and energy to be successful. Another disadvantage of direct real estate is that many investors require financing to pay for their investments.

If the market tanks, they may default on their loan. Real estate is not a liquid asset. This means you will not have the chance to sell a property quickly if you find yourself in need of emergency cash.

REITs

A REIT is a corporation that invests in income-producing real estate. It is typically modeled after mutual funds. In the US, there are more than 225 REITs that are listed on major stock exchanges. With a combined market value of over $1 trillion, these companies are the world’s largest REITs.

Pros and Cons of REITs

One of the main advantages of REITs is that they allow investors to access the profits of the real estate market without being bound by traditional real estate investing rules.

With a 5% dividend yield, REITs are likely to have the highest total return potential. They also have the potential to increase their capital appreciation. Like stocks, REITs trade under heavy volume. This means investors can buy and sell their shares without being forced to do so.

Some of the drawbacks of REITs are that they are not considered “qualified dividends” by the IRS. This means they are taxed at a higher rate than ordinary dividends.

Another downside of REITs is that they are sensitive to changes in interest rates.

Rising rates can make their prices go down while increasing interest rates can stimulate demand. One other thing that’s negative about REITs is that they tend to focus on a specific type of real estate, such as hotels. If this type of property is your main concern, then you’re prone to experiencing property-specific risks.

If you’re looking for a more conservative approach to real estate investing, direct real estate may be a better choice. It’s also likely to provide you with tax breaks. The appeal of REITs is that it allows people who don’t want to manage real estate to get into it. They also provide a good way for people who have limited time and energy to learn about the industry.