5 Tips for Being a Successful Real Estate Developer

5 Tips for Being a Successful Real Estate Developer

Real estate development is an enticing endeavor for people who want to see significant gains on their investments. The market is one of the most dynamic, though, so you should take each step with careful consideration and due diligence. As you begin in real estate development, here are five things to always keep in mind.

Be Conservative While Taking Risks

If you start out in real estate development investing a huge amount of capital and overnight success, plan to be disappointed. This is a highly competitive and complex environment, so it is best to take risks while remaining conservative with your expectations. Two distinctions to make in the beginning is that between discipline and differentiation. Discipline refers to projections about how much you plan to make each time you sell or lease a space. Differentiation is what sets you apart from the competition. Balance the two just right, and you have a winning combination.

Know the Value of Reliable Data

As technology has evolved in recent decades, we now have access to almost any type of information. Before you decide to take on a real estate development project, research, and then research again. Use reliable sources, and compare the findings across multiple platforms. Always look for data that contradicts what the masses are saying. There may be some insight that saves you time and effort.

Have the Right Team

When you are putting together a team to make your dreams of real estate development come true, choose the right people. This means always choosing the best people in the business, even if you have to pay more. Your team is what will carry your projects through from start to finish and help you build lasting relationships that add value now and in the future.

Learn the Laws

You are certain to have times when you will need to work with local communities, organizations, and governments to secure access to water, land, and even air. Understanding the laws ahead of time makes you prepared for any barriers and challenges that may arise. You will need to know about environmental impact protections and zoning. In large metropolitan areas, air rights are a current consideration, but the advent of drones will make this issue much more common in real estate development.

 

Is 2021 Good for the Housing Market?

Is 2021 Good for the Housing Market?

The impact of disruptions from 2020 are far-reaching, and the housing market is no exception. This leaves many people wondering if 2021 and beyond will be enough time to stabilize the economy and real estate investing. Here are four trends that are emerging in the housing market so far this year.

Housing Prices in Metro Regions

The median price of residential homes in metro areas saw a decline in the first part of 2021, making this a great time for those who are looking to buy. The trend is especially noticeable in metro areas of the country. There in also an increase in the numbers for people who are selling homes for the first time, so inventory may increase, which will also decrease median prices as sellers need to remain competitive. Although median housing prices are higher than the same time last year, the increase is much slower. Overall, housing prices have increased by nearly 13%, but less than 4% in metropolitan areas.

Housing Sales Compared to 2020

Even with the economic challenges of 2020, more people are buying homes in 2021. Sales for existing homes increased by just over 1%, most likely due to the higher levels of inventory and competitive median housing prices. Homes that are on the market are also within an affordable price range for most buyers this year. First-time buyers only represent about 30% of home buyers, and this may be an indication of people downsizing or relocating. The southern part of the country is seeing the highest percent of home sales, followed by the Midwest, west, and northeast.

New Construction

As of June 2021, new home construction continues to decline, and it is at an all-time low as of June 2021. Many predictions indicated that new construction would increase around the middle of 2021, but those predictions have not materialized. Instead, pricing for new homes have made them unrealistic for many buyers. When combined with the inventory and competitive pricing of existing homes, buyers are choosing to get the most house they can for their budgets.

Quick Sales

Homebuyers are making purchases much quicker compared to last year. The increase in people looking to buy may influence the decision to jump on a good deal rather than wait. On average, listings are for sale just over one month before they are under contract and off the market. Analysis of buyer behavior and the real estate market indicate that the time on market will continue to decrease.

 

5 Terms to Understand in Housing Market Value

5 Terms to Understand in Housing Market Value

Each year, millions of homes are bought and sold in the United States, and investors review data released for the housing market value. If you are curious about the housing market or considering investment, here are phrases that you should understand about housing market value.

Median Sale Price

When you look at the median sale price for homes in the country, the data will show a dollar amount and a percentage of increase or decrease. The median price can be viewed as the average. In June 2021, the median sale price was just under $390,000, demonstrating an almost 24% increase compared to last year. Use the median sale price of homes to determine if the housing market is affordable for buyers and profitable for sellers.

Average 30-Year Fixed Mortgage Rates

Fixed mortgage rates reflect the cost of buying a home, typically shown as an interest rate. Higher fixed mortgage rates coincide with a downturn in purchases because people cannot afford the higher monthly payments. When the mortgage rates decline, you will see more people buying homes. In June of this year, the average rate for a 30-year fixed mortgage was 3%, compared to almost 5% in 2018 and 2019.

Median Days on Market

Median days on the market show you how fast properties sell once they are listed. This means that buyers have to act quickly to get the home they want and can afford, and sellers can expect to get out of their properties sooner or later. The average time that it took to sell a home in June 2021 was 14 days, indicating that it is a highly competitive market.

Months of Supply

Months of supply is based on the number of homes that are listed for sale compared to how many people are looking to purchase a home. As of June, there is a little more than one month of supply of homes on the market. This is significantly lower than past years. In 2019, there was a supply of homes for sale that would satisfy buyers for four to five months.

Sale-to-List Price

Sale-to-list price indicates how much the actual sales price was above or below the original listing price. In highly competitive markets, buyers may offer a price that is more than the list price to ensure that they get the home they want. The sale-to-list price is lower when there is little competition or the home’s actual value is below the asking price. In June of 2021, the average sales price was slightly more than the asking price.                                       

Three Reasons to Hire a Real Estate Agent

Three Reasons to Hire a Real Estate Agent

Although some websites promise an easy way to buy or sell a home, there is no substitute for a real estate agent. The experience that agents have can help clients navigate the tricky real estate realm while finding their dream home. These are three of the top reasons that make real estate agents irreplaceable.

Community Connections

For people moving to a new neighborhood, real estate agents can provide home buyers with knowledge of the area. This includes information on the location of schools, utility bills, taxes, local attractions, hiking trails, and lots more physical information. Although real estate agents cannot discuss people or answer other questions that might violate the Fair Housing Law, they are still a wealth of information about whether the physical attributes of a neighborhood fit a client’s needs.

Negotiation Assistance

A major part of buying or selling a home is negotiation. Real estate agents can provide expertise for the negotiation process. Real estate agents understand their listings and can point out issues with the property that can drastically impact negotiations. While some real estate agents have formal training in the negotiation process, all real estate agents have experience in performing these specific negotiations. Agents also know the legal particulars of home buying and selling that people must adhere to that impact the negotiation process. Using special techniques and a vast understanding of the housing market, real estate agents can negotiate for the best deal possible.

Exclusive Access

Not all sellers list their homes online for individual sale by the owner. Real estate agents have exclusive access to many listings. Going without a real estate agent could severely limit the available properties. Real estate agents also do the hard work of arranging a viewing for their clients. Agents call other agents or brokers to set up a viewing. They can also discuss the home more with the other agent to find out if it meets a prospective buyer’s needs, which saves a wasted trip.

The guidance and experience of a real estate agent are integral to a smooth and successful home buying or selling process. There are too many risks for going through the process alone. Real estate agents know their properties and the process well, ensuring a good deal for their clients.

 

Real Estate Professionals to Follow Online

Real Estate Professionals to Follow Online

One of the best ways to pump up your real estate professional muscle is to build your own social media following. Learning how other “real estate stars” participate online with the large followings they have engineered can give you a clue about what’s been working for them –- and which might work for you. These folks also frequently offer valuable insights into the industry that you can use.

Here are some examples:

Fredrik Eklund

This guy made his name with the high-profile New York real estate operator, Douglas Eillman. It doesn’t hurt that he has a starring role in “Million Dollar Listing New York,” the Bravo channel TV hit. To top it all off, he’s the best-selling author of “The Sell: The Secrets of Selling Anything to Anyone.”

So, sure, a guy like this is going to garner gazillions of followers. However, other real estate professionals can learn from his high-flying lifestyle and the tenor of what he posts. It’s all about “creating an aura of success” on social media that helps nurture even more success.

Rich Barton

He happens to be the co-founder and CEO of Zillow Group. Barton launched Zillow in 2006 with partner Lloyd Frink and today the company is worth more than $3.4 billion. As a media company serving the real estate sector, Zillow and Barton offer endless insights into what’s happening and what you need to know. For example, his latest Twitter post offers insights on how “work” has been unbound from “location” and the consequences this has for real estate operators.

Gino Blefari

He is the chairman of HomeServices of America and the CEO of Berkshire Hathaway HomeServices. Houston Agent magazine recently named him one of the “10 Most Powerful Influential Leaders and Executives.” Following him on Instagram will help real estate pros find inspirational events and cogent information that can be put into practical use to further a career in this dynamic field.

Eric Wu

He is the co-founder and CEO of OpenDoor. Before that, he founded Movity.com, a location and data analytics firm. He recently posted a guest article in USA Today describing how OpenDoor disrupted the $1.6 trillion U.S. residential market. Clearly a thought leader in the real estate sector, following Wu on Facebook, Twitter and Instagram is a steady source of information that will be relevant to your career.

 

How to Improve your Understanding of Commercial Real Estate

How to Improve your Understanding of Commercial Real Estate

Commercial real estate is closely related to residential property. So, many professionals still get confused when trying to tell the differences. Many property buyers remain uninformed about changes that are occurring in the real estate industry. Becoming a better buyer or seller starts by understanding the fundamental aspects of the industry.

Understand the Basics of Commercial Real Estate

Many commercial real estate owners lack a basic understanding of the business in which they work every day. Some investors continue to work for years without knowing all of the differences between commercial and residential properties. For instance, operating, repairing and maintaining a commercial property is more stringent than running a residential building. The work may require undergoing additional legal procedures along with additional paperwork and longer wait periods.

Think Like a Professional

Every commercial real estate buyer or investor must think like a manager or owner does. To reach professional levels, the buyers must do at least a year of research about commercial buildings and continue their education indefinitely. It’s important to become fully knowledgeable and confident to the point of knowing how to educate other people on the same topic.

Review Industry Trends

Within one year, the real estate industry can undergo several, major transformations. Each year, there are industry trends that affect the types of commercial properties that people buy or invest in. During a pandemic, investors may stop supporting restaurants altogether and invest in retail or grocery stores. Overall, if someone does not know the latest trends, he or she will make costly mistakes when dealing with real estate.

Learn About Specialties

Commercial real estate is not one large field where every business and building is the same. There are many specialties of commercial real estate, such as office, retail or industries, to choose from. Most clients look for professionals who have specialized knowledge in certain subfields.

Commercial real estate is never a simple or straightforward area of study. There are many different types of individuals involved from small business owners looking to rent buildings to companies looking to construct buildings on raw land. Understanding every aspect of commercial real estate is recommended to make the wisest decisions. There are plenty of tips, tricks and resources available to assist in the learning process.

 

How to Make the Most out of your Home Search

How to Make the Most out of your Home Search

Searching for a new home to buy for your family can be a long and frustrating process, but there are things you can do to simplify your search. Some of the practices buyers use to search for homes may actually be hurting their chances of finding their ideal home. By following these tips, you can search more efficiently and find the home that suits you a little faster.

Don’t Refine Your Search

The common problem is that buyers limit their searches to particular criteria in an effort to ensure they find their dream home. Unfortunately, this means excluding homes that have your “must-have” features but may not have other features that you could do without. Keep your home search as broad as possible to find the greatest number of homes that will meet your family’s needs.

Don’t Rely on Photos

Ideally, every seller should hire a real estate photographer to create great staged photos of each room in the home. However, that’s rarely the case, and many sellers simply photograph their homes in as-is condition. Even if you don’t like the photos included in the listing, you should check out the other information that’s provided. If the home seems to meet your criteria, an in-person viewing can help you better understand the property’s true condition.

Read the Listings

Most people skim the headlines for listings and look at the photos. Unfortunately, this means buyers may be missing some key information. For instance, a seller may be especially motivated to sell or features to the home that can’t be captured well in photographs. By reading each listing, you may find homes that don’t appear to meet your needs until you learn more about them. The information contained in the listing can help you get a better deal on a home, and that may make it worthwhile to adapt the home to meet your needs.

 

You should also work with an experienced real estate agent. In addition to assisting you in your search, an agent can obtain paperwork on specific properties that will help you make a better-informed decision. You won’t have to pay the agent a fee, and they can help you find more properties that meet your needs.

 

How Beginners Should Get Into Real Estate

How Beginners Should Get Into Real Estate

There will be many things that beginners assume about real estate investing. There is also plenty of insider information to know if they want to develop successful careers. There are a few tips to learn to get started in real estate investing.

Look at Financing Options

Becoming a real estate investor is a wise method of earning a passive income, but it requires investing a large amount of cash upfront. The first yet hardest option requires years of savings in personal finances. If the initial payment cannot be made, investors can borrow an investment property loan to start the process, whether it’s a hard money loan, home equity, or personal loan.

Choose the Type of Property

There are different types of real estate to invest in, and it’s not possible to invest in all types. An investor has to choose one or two types and focus on each type’s specific features, benefits, and setbacks. A beginner investor may decide to invest in residential buildings and focus specifically on apartment complexes. Not all types of residences are easy to invest in and guarantee good profits, so it’s important to select the right type of property.

Analyze the Area

Not every city, county, or neighborhood is a good place to invest in either. An investor may find an attractive apartment building in a clean, safe suburban neighborhood, but if very few people are applying to become tenants, making a deal here will not guarantee steady profits.

Avoid Scams

One of the most important steps is to avoid investment scams that are often heard of in the news. Individuals or companies should have professional credentials that can be verified. Before they buy, potential investors should review and compare different products and services online. The main point is to look for a person or company that already has an established reputation.

Investing in real estate is one of the smartest financial decisions to make. This type of investment means a passive income with a predictable cash flow and a continuing appreciation in value. People are constantly moving around and renting or buying homes, apartments, condos, and townhouses—real estate investing starts by learning more about the process and how to earn the highest returns.

 

The Best Resources to Consider for Commercial Real Estate

The Best Resources to Consider for Commercial Real Estate

Seasoned commercial real estate pros will tell you that achieving success in this dynamic field means keeping up with trends. Two other key factors often mentioned are learning to be opportunistic in spotting promising deals — and a proactive ability to spot potential losing situations.

Newbie commercial real estate entrepreneurs can obtain these traits through constant professional development. That means studying the field and tapping into resources that offer leading-edge information on what happening in real estate. The fresher the information the better.

Here, then, are some suburb commercial real estate informational and educational real estate resources that will keep you on top of what happening:

Bisnow

This multi-platform digital media provider is a producer of both news and a creator of live events. Owned by Wicks Group, a private equity firm, Bisnow covers 27 top metropolitan markets in the U.S. along with Canada and the U.K. The excellent “must-have” information of Bisnow has earned it a robust 600,000 subscribers. The latter is a strong indication of the quality and value of the information offered.

 

Connect Media

 

Founded in 2014, Connect Media has a news division that has grown rapidly since its start-up. It now produces 11 daily newsletters along with 10 commercial real estate newsletters that are handled by a crack team of professional editors.

Furthermore, Connect Media creates and promoted north of 200 digital events that draw many prominent names in the commercial real estate sector.

The Real Deal

Industry observers call it “the premier real estate news outlet in America.” The Real Deal has an enormous reach, capturing millions of professionals through print, digital and social media outlets. It offers breaking real estate news, market intelligence reports, proprietary rankings, custom research, trends, profiles and a lot more.

The Real Deal has been rated among the 300 most-visited sites in the United States – and is ranked No. 1 among websites that cater to wealthy followers.

Commercial Observer

This source is a leading platform that connects commercial real estate professionals with other key players. Those who frequent the site include building owners, building managers, commercial lenders, brokers and professional services firms.

Commercial Observer’s offers weekly coverage and real-time updates on its digital platform. It hosts live events and offers a cogent mix of breaking hard news along with in-depth feature stories. Here you will also find exclusive industry columnists and detailed analyses of market trends.

 

How Commercial Real Estate Can Recover from the Pandemic

How Commercial Real Estate Can Recover from the Pandemic

Many commercial real estate owners have had to close down or sell their assets during the Covid-19 coronavirus pandemic. As they undergo a period of recovery, they have to reopen their doors and think of new ways to sell to the public. There are various solutions available to help business and property owners as they regain strength after a pandemic.

Put Safety First

In the final days of a pandemic, a commercial building owner needs to put the safety of customers first. This means promoting a cleaner, more sterilized environment for all managers, employees and visitors.

Put the Customers’ Needs First

Every customer’s needs and interests change during a pandemic. Most people focus on buying the necessities first along with the items they want to enjoy. It is recommended that sellers find out the bestselling products in the markets at the moment and reprioritize the products that they are selling in their stores.

Keep Up to Date With the News

The news informs everyone about the state of the pandemic in the local community and in the greater nation. Most importantly, business owners need to know the status of local infection rates and the guidelines that politicians are recommending. Their greatest chance at recovery lies in staying informed and relevant to today’s issues.

Choose Traditional vs. Digital Methods

During the pandemic, many business owners transitioned to virtual settings. They took on more digital marketing methods to reach out to clients online and over the phone. As the health crisis is ending, more companies are returning to their physical offices and buildings. It’s necessary to know which businesses, workers and services will return to their previous states and which ones will remain virtual.

Market Again

Every business’s marketing campaign should be improved and resumed as it was before the crisis began. This means learning how to market again but to a changed audience. Every marketing campaign needs improving to meet the newest, latest demands in the market.

The commercial real estate industry has never remained stable under any condition. But during the recovery period of a pandemic, most consumers are eager to start buying again, and that includes buying business property. Business owners have many opportunities to recover and bounce back from this temporary downtime.