Real Estate Investment A Good Bet

More of America’s millionaires have a sober outlook on the U.S. economy headed into 2016, with many  assuming another year with a flat S&P 500 index leading to a lower personal rate of return and a majority belief among millionaires that household income will remain the same, according to a CNBC report.

Meanwhile, the Fall 2015 CNBC Millionaire Survey says, the rich are concentrating investments in only a few stock sectors, and more so outside the stock market entirely.

“Returns will come down,” said Ron Carson, founder and CEO of Carson Wealth Management, who works with many mass affluent clients. Carson said this outlook is the right one for investors. “If you’re netting 4 percent to 6 percent and doing it with a level of risk that’s comfortable, that’s pretty good,” the financial advisor said. “And for the next decade, at least, investors need to think about rates of return in the 4 percent to 6 percent range, unless you are willing to take on liquidity or market risk that is high,” Carson said.

Carson said most investors should join millionaires in thinking of this outlook as being permanent: “Miilionaires are very understanding of the fact that the days of double-digit returns without having to work are gone,” he said.

Carson also gave a thumbs up to real estate investment for those willing to give up daily liquidity.

Among stocks, three sectors dominate millionaire portfolios: technology, financials and health care. Health care was the surprise among the sectors where millionaires plan to invest more next year. Technology and financials have typically flip-flopped quarter-to-quarter for the top two spots among millionaire stock plays, but health care is ahead of financials for 2016, according to the CNBC Millionaire Survey.

The percentage of millionaires who indicated that the greatest percentage of assets would go to health care jumped from 13 percent to 16 percent. That put health care ahead of financials, where interest dropped steeply, from 23 percent of millionaires saying it would be among their greatest investments down to 12 percent in the fall survey.

Carson noted that his firm’s global portfolio has been a bright spot this year with the U.S. market being flat, but he sees millionaires seizing upon real estate ownership as one of the most interesting opportunities for investors. Carson’s firm bought and rehabbed individual homes, and that investment is up 19 percent year-to-date, with an 11 percent dividend yield. However, it’s an illiquid investment that requires a five- to six-year holding period. “If you can give up daily liquidity, you’ll get a better return,” Carson said.

 

If you are looking to invest in real estate, make your first call to Landmark Group. We are here to help. We know the market and can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

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How to Keep Renters Happy

Here How to Keep Your Renters Happy

 

Renters are fairly practical when it comes to what they most desire in their apartments. Among a variety of options, they rate high-speed Internet access as their most important amenity.

 

A new survey from the National Multifamily Housing Council and Kingsley Associates reveals the amenities that renters want most and are willing to pay for. The survey is based on responses from nearly 120,000 apartment dwellers.

 

“Magnificent clubhouses and media rooms may look great on tours, for both prospective residents and equity investors, but they often don’t get used as much as you’d think,” says Jay Denton, senior vice president for research and analytics for apartment data firm Axiometrics.

 

Instead, here are renters’ most-desired amenities:

■ Fast Internet access

■ Parking

■ Walk-in closets

■ Soundproof walls

■ Private outdoor spaces, such as patios or a balcony

■ Washer/dryer in unit

■ Microwave

■ Refrigerator water/ice dispenser

 

Four out of five residents also said they were interested in pools as an amenity in their building, and they are willing to pay extra to have one, too. “It’s all about an extra place to hang out with your friends,” says Denton. “I’ve seen more cabanas and other gathering spots near the pool so that it has some functionality during the winter.”

 

Location is another important element for renters. More than half of residents surveyed say they prefer to live within walking distance of a grocery store or a neighborhood restaurant. “Being near shopping, retail, and restaurants is a huge amenity,” says Denton.

 

If you are looking to invest in real estate, make your first call to Landmark Group. We are here to help. We know the market and can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

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Three Trends Will Impact Real Estate

The real estate business is going to be shaken up by a changing mindset on how consumers want to live, work and even drive. The Urban Land Institute recently brought together a group of technology and real estate leaders who shared what innovations they think will have the most impact on the real estate business in the coming years.

 

The key takeaway: consumers and businesses are looking to make real estate more efficient, more adaptable and easier to share.

 

  1. Flexibility. The panelists believe that flexible leasing options that align with what’s happening in the market, adaptable building design and land use and seeing tenants as partners rather than clients are key trends that will impact commercial real estate. Seeing tenants as partners and collaborators was a big theme of the overall discussion.

 

“We need to align real estate providers’ interests with those of their tenants,” says Patrick L. Phillips, global chief executive officer at the Urban Land Institute. He listed WeWork, a company that provides coworking space, as an example of this push towards collaboration. “Yes, that is a real estate business,” adds Phillips. “But it’s also about creating an ecosystem of companies that benefit from close proximity to one another.”

 

  1. Driverless cars. A recent report revealed that we can expect autonomous vehicles to be in wide use in three years, and leaders agree that driverless cars will have a huge impact in the real estate industry, particularly in the evolution of cities. Driverless vehicles “will change the way that we think about designing cities,” says Randall K. Rowe, global chairman of the Urban Land Institute. It remains to be seen if driverless vehicles will prompt buyers to move to urban areas or if these vehicles will actually contribute more to city sprawl. These vehicles will also shape city planning efforts, since most likely they will have to redo building codes and parking requirements.

 

  1. A culture of sharing. Co-working and communal living options are growing in popularity. PivotDesk, for example, pairs small startups with other companies that have excess space and convinces them of the benefits of space sharing. “We’re so conditioned to think about our infrastructure and office space in a certain way,” says David Mandell, chief executive officer of PivotDesk. “You can leverage that asset,” he said. “Once they try it, they say, ‘I should have done this a year ago.’”

 

This move towards a sharing economy follows the recent trend of millennials in urban and expensive cities seeking out communal living experiences that not only save money and resources, but also create mutually beneficial social networks and a sense of community.

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Homeless in Omaha, NE

Lately I have noticed more homeless people walking around downtown Omaha, NE . I have caught 10 people on four occasions in last three weeks squatting in one of my properties. Although its always interesting to engage them and find out what they are up to and what is going on in their lives that would cause homelessness, it is intimidating to the tenants. I think there is such an influx of homelessness in Omaha because all of the vacant buildings that they were squatting in are now high end apartments and they are now on the streets. In this installment of Landmark Group TV, our spokes models talk about how we can help the homeless population in Omaha, NE

Homeless in Omaha NE

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Bus

From Good to Great
How to run a successful business 

Step one. Get the right people on the bus

Step two. Get the right people in the right seat on the bus

Step three. Drive the bus

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“Blessed is the one who does not walk in step with the wicked or stand in the way that sinners take or sit in the company of mockers, but whose delight is in the law of the Lord, and who meditates on his law day and night.”‭‭Psalm‬ ‭1:1-2‬ ‭NIV‬‬

http://bible.com/111/psa.1.1-2.niv

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Big Data Is Changing Commercial Real Estate

The commercial real estate industry is embracing big data. The financial and health care industries have already used big data to solve problems and predict consumer behavior. Now the commercial market is finding ways to use big data to help with anything from designing better office spaces to improving the building management process to responding to a prospective buyer’s concerns about a property.

“Big data is making the commercial real estate industry more transparent,” Ely Razin, CEO of CrediFi recently told CNBC. “It becomes a partner to the players to the community, whether they’re brokers, lenders, investors or owners.”

Here are three ways the commercial market is embracing data:

Streamlining financial processes

The commercial industry is adopting big data technology to improve the financial decision-making process. For example, CrediFi, a big data commercial real estate platform, uses credit risk algorithms to analyze large public data sets to produce risk scores for regional real estate. Big data platforms can also analyze a building’s structure and whether it’s been renovated recently, as well as the financial status of the owner, in order to help commercial real estate pros make smart investment decisions.

 

Getting a read on prospective buyers

Those in commercial real estate now have access to smartphone apps that can predict responses and sentiment from potential buyers. A new start-up VTS, which stands for “View the Space,” is aimed at the real estate industry and makes the negotiating process smoother by making it easier to get quick feedback about properties.

 

“If 80 percent of prospective tenants aren’t moving forward and giving you a proposal because they feel the space is priced too high, or the image of the space is wrong for them, like issues with the height of a ceiling or the size of a room, we capture that information directly,” says Ryan Masiello, co-founder and chief revenue officer of VTS.

 

Making building management smarter

Investing in big data also simplifies the building management process. Big data and the “internet of things” help building managers speed up the wait time when fixing problems, as well as cutting expenses.

 

“We’ve put sensors on the equipment in a building, for example, and every 15 seconds we get a read on the air temperature, if the fan is on or off,” says David Kollmorgen, international director and head of business intelligence at Jones Lang LaSalle. “Then we can feed data into algorithms, like if this fan is working, then it shouldn’t generate a work order to fix it. We can also figure out, is weather data correlating to x, y or z.”

 

The cost of investing in smart technology and big data can be pricey and time-consuming, but big data is on its way to help the commercial industry make better decisions.

 

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Multi-Family Housing Starts, Building Permits Soar

Building permits for single-family and multi-family construction surged to an eight-year high in June, signaling a pick up in home building is on the horizon, the Commerce Department reports.

Permits for future home construction rose 7.4 percent to a 1.34 million unit pace in June, the highest level since June 2007.  All four regions of the U.S. – Northeast, Midwest, South and West- reported gains in housing permits.

Multi-family permits posted the largest increase at 15.3 percent in June, while permits for buildings with five units or more increased to the highest level since January 1990.  Permits for single-family home building also rose, increasing  0.9 percent last month.

Economist point to a rise in household formation and an improving labor market that is prompting more young adults to leave their parents’ home and spark a rise in demand for housing, notably apartments.

A rise in multi-family production helped push housing starts 9.8 percent higher in June month-over-month, reaching a seasonally adjusted annual rate of 1.17 million units, according to the Commerce Department.  Multifamily production surged 29.4 percent last month, reaching a seasonally adjusted annual rate of 489,000 units.

“The multi-family gains this month are encouraging and show that the millennial generation continues to be drawn to the rental market,” says Tom Woods, chairman at the National Association of Home Builders.

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4 Vital Tips for Managing Contractors

Cover yourself with contracts and a paper trail.

Keep communication clear, and provide a record of who said what when- this could help iron out disputes later on.

Never pay ahead of the work.

Many contractors will tell you that they can’t start on the project until you pay them some amount of the total cost upfront.  This is backwards.   If your contractors ever walk off the job or fail to show up for work, you’ve paid more than the work that’s been completed, and you lose money. Instead, your contractors should be working ahead of your payments, not the other way around.

Make sure you visit the job site at least a couple times a day, make sure you “drop in” by surprise.

If you have a trusted crew that you’ve worked with in the past, this may not even be necessary. But, if you’re not going to be at the property full-time, make sure you at least check in a couple times a day — on surprise visits.

Go into it as a life long relationship, be a good customer and pay fast.

One of the best ways to get quality work out of your contractor is to make them enjoy working for you.  Which means being decisive with the contractor- and giving him a check promptly at the agreed-to points in the project.


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Property Investors Tilt to Flipping

Home flipping continues to inch out a hold-to-rent strategy among investors who bid on properties at auctions, according to Auction.com’s Second Quarter 2015 Real Estate Investor Activity Report, which is based on survey results of real estate investors nationwide.

ef-psef5u90 46“Rounding out the first half of 2015, most of the country and most investor segments performed in a manner very consistent with what we’ve been seeing for about a year,” says Rick Sharga, Auction.com’s executive vice president.

“We’re seeing two major trends that are driving these numbers. First, we’re seeing a return of the ‘mom and pop’ investor in the single family rental space – smaller investors with an intimate knowledge of their local markets, who are willing to buy properties that deliver long-term returns based on monthly cash-flow. Second, investors focusing more and more on flipping properties in regions where prices have rebounded from the 2008 crash and inventory of homes for sale remains scarce – an almost perfect scenario for investors looking for a short-term profit.”

The survey revealed that investor respondents who were making a one-time purchase strongly preferred a hold-to-rent strategy, while respondents who identified themselves as “full-time real estate investors” favored flipping.

Whatever your real estate need or strategy, we at Landmark Group are here to help. We are here to help you buy, sell or rent residential, retail, office, wholesale or industrial property.  We can also help you maintain, renovate or manage your property. Just give us a call.

 

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