Posts

Showing posts from October, 2020

Combining Real Estate Expertise With Financial Advisor Is A Winning Combination

Combining Real Estate Expertise With Financial Advisor Is A Winning Combination I t is human nature to want to be right, particularly when it is your job to be the expert. That is one reason why financial advisors, individuals who have spent years studying and passing examinations to be allowed to consult people about their wealth, can be quick to minimize the role of real estate assets in a client’s portfolio. The average financial advisor receives little to no advanced education about real estate, be that about the market or how to manage real estate assets. Perhaps more importantly, such an advisor spends little to no time keeping up with the market or working in that space on a day-to-day basis. Real estate is not something that you can track casually; it is a fast-paced, highly nuanced industry. That is why financial advisor needing expertise across asset classes, which include real estate should make sure they have experts in real estate around to work with. But the way that is a

BRICKS & MORTAR TO CAPITAL MARKETS & FUTURE TRENDS

Image
The real estate market - everywhere - went from local to global; and from being bricks-and-mortar to the capital market. The real estate industry has played  key roles in transformational changes and helped create enduring legacies of highly liveable and sustainable environment in the world. Real estate has an evolution and the contributory factors can be identified. From the humble beginning of locally focused real estate markets here and there, built mainly for owner occupation, to a globalised market. Most importantly, the increasing integration of bricks-and-mortar real estate with the capital markets as evidenced by the securitisation of both real estate equity and debt. BRICKS & MORTAR TO CAPITAL MARKETS Innovations in the real estate industry and the capital markets over the past few years have enabled all parts of the underlying capital structure of real estate to become tradable both in the private and public markets. This transformational change has resulted in a vastly e

TYPES OF SERVICES OFFERED BY PROPERTY MANAGEMENT FIRMS.

Image
TYPES OF SERVICES OFFERED BY PROPERTY MANAGEMENT FIRMS. If you are thinking what does Property Management firms do, you should first understand the different services that they offer. When you understand what is offered, you will be able to better understand how they assist. While it will vary from service to service, the most common things offered by a property management company are highlighted here. - Tenant Screening Services Property management services will provide comprehensive screening for potential tenants. This will include running background checks, calling for references, their employment history, business they do etc. - Handling of all Legal Documents These documents are necessary to protect owners rights to the property that is being rented, and the tenants’ rights to possess the property for the term of the lease. These documents will also outline how money is to be collected, as well as other fees and deposits that may be applicable. - Inspection of Your Rental Propert

Things to Know About Real Estate Appreciation

T hings to Know About Real Estate Appreciation One of the greatest debates in real estate investing has always been whether you should invest for cash flow or for appreciation. Which investment model is better for you depends mostly on your reasons to invest in real estate and for how long you plan to keep your property. If you are in real estate investmemt for some extra income and you don’t plan to keep your property for more than 10-15 years, then you should focus on the cash flow. If, on the other hand, you are in real estate with the goal of selling your property in the long run after the price has risen significantly, then you must concentrate on real estate appreciation. There are many factors which determine real estate appreciation, some of which are more obvious, while others are rather obscure. 1. Land If you are looking for an investment property and to a lesser extent if you are looking to buy a home, don’t allow yourself to overstress the appearance and the structure of t

Your Real Estate agent is not a Real Estate Investment advisor

Your Real Estate agent is not a Real Estate Investment advisor Sure it seems to you like everyone is a real estate expert these days. Talk to any real estate investor, and they’ll tell you about how much their real estate investment have gone up in value while real estate agents are more than happy to talk about how real estate is a can’t miss investment. Wait a minute, are real estate agents all of a sudden financial advisors? How can they possibly say real estate is a can’t miss investment? Well, there are no laws saying they can’t make such statements, so they’re not doing anything illegal. But that doesn’t mean you should think they can accurately predict the future or treat them like a certified financial advisor. You can use a real estate agent to buy property and like him/her a lot. Even trust them with all of your real estate needs, but never turn to them (or any real estate agent) if you need advice about investments,here’s why. Real estate agents are paid to sell or buy In mo

Advantages of Disadvantages of Real Estate.

Image
Advantages of Disadvantages of Real Estate. Most new investors are told Real Estate has low liquidity. Some believe real estate has higher transaction costs so they don't go near it. You need some form of expertise since it requires Management and Maintenance others would say. Even the disciples of real estate investment would argue that real estate markets has significant inefficiencies. It seems no matter where you turn, there is a whole crowd of people ready and willing to tell you what is wrong with investing in real estate, or what's not right. It’s a wonder anyone invest in it at the end of a day. But there is huge advantage in disadvantage. The reason others see this is because they are looking at it wrongly. Imagine if they told you real estate can be easier to understand. When you start investing, it can be difficult to understand everything you need to know to make a profit. Many types of investments rely on abstract concepts and complex algorithms, which are especial

What Is Your Goal in Purchasing Land?

Image
  What Is Your Goal in Purchasing Land? Before you actually purchase a piece of land, you have to decide what your goal is for the investment. There are several different strategies to consider and it is not a one size fits all approach. Two different investors could have two very different approaches to the same piece of land. In addition, the same investor may have two different approaches for two different plots of land. Consider these strategies to consider when buying land: Buy and sell: In this approach, you are basically flipping the land. You believe you purchased the land below market value and are hoping you can find another buyer who is willing to pay at or more than market value. You are hoping for a quick sale with little to no additional work on the land on your part. Buy and hold: In this approach, you buy the land and hold onto it for a period of time. You believe the land will appreciate in value. The investor purchases the land in the hopes that they can sell it to a

HOW ARE YOU PREPARING FOR THE COMING PARADIGM SHIFT?

Image
  HOW ARE YOU PREPARING FOR THE COMING PARADIGM SHIFT? We hear it every day, in general terms, that the real estate industry is changing, but what does that mean if you do real estate for a living?    HOW WILL YOU BE IMPACTED?   How will the envisioned change affect you, and how do you prepare for what will be more than change, but a paradigm shift?   Change is constant; it bubbles along until there has been enough for that change to manifest in one way or another. The change that is approaching is not just any change, but a fundamental shift to the significant aspects of dealing in real estate… it is a paradigm shift.   A paradigm is a model, a set of rules, the way something gets done. They surround us, from sports to the rules of business. Paradigms set up boundaries and give us the rules for success within those boundaries.   The rules surrounding the purchase and sale of real estate are changing, shifting. A significant aspect of paradigm shifts is that when it happens, everyone g

How a Joint Venture in Real Estate Works?

Image
  How a Joint Venture in Real Estate Works? Real estate investing involves a lot of individual goals, so teamwork is often overlooked when real estate investors want to scale their business. A joint venture in real estate investing is a way for investors to put their money, experience, and expertise together to accomplish more than they could on their own. What is a joint venture (JV) in real estate? A joint venture in real estate is two or more parties that combine resources for a specific development or investment. The parties in a joint venture maintain their own business identity while working together to complete a deal. The responsibilities in a joint venture can be assigned in whatever way is needed for the particular project. The profits are also shared however the parties agree. Two developers might do a joint venture to complete a project that's too large for either of them to take on by themselves. Or a real estate investor might partner with someone who has the money to