OPERATIONS
It’s All About the Feels
DESIGN
Vibrant Trend Blends Nature, Luxury
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The Pros’ REI Playbook
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PUBLISHER & CEO Eddie Wilson MANAGING EDITOR Carmen Fields
FULFILLMENT COORDINATOR Blair Pierce
DESIGNER Kat Hungerford
CONTRIBUTORS Lorraine Beato Dominion Financial Services Christian Faes Gaylene Rogers Lonergan Taylor Miller Joel Moyes Susan Naftulin Real Property Management Jeff Roth Jim Tannehill Michele Van Der Veen Skyler Wilson
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4 | think realty magazine :: may - june 2025
Letter From The Editor
Design Is Your Investment Advantage: Use It D esign is more than just paint colors, flooring options, and countertops. Although initially viewed as an afterthought to other aspects of real estate investing, design is now considered a key investment that influences many other facets of a project. A successful investment is no longer solely determined by location or “making the numbers work” financially; it is also influenced by design. Each project starts with design, from designing the structure of the deal, to designing the budget and physical layout of the property, to the detail in the lighting and decor. Thoughtful layouts and aesthetic appeal, both impacted by current design trends, play a pivotal role in attracting buyers, increasing property value, and ensuring long-term profitability. Because today’s market equals fierce competition and high buyer expectation, it is important to incorporate design into your investing strategy. Design plays a strategic role in shaping a property’s value, functionality, and long-term appeal. A well-designed property attracts attention, creates emotional connections, and sets itself apart in a competitive market where inventory is scarce. Whether you’re flipping houses, developing rental units, or investing in commercial spaces, your design choices can mean the difference between a quick sale at a premium price and a property that lingers on the market. When a potential buyer enters a property and feels “at home” or visualizes themselves living there, you know you have created a connection between them and the property, ultimately leading to further conversation and a potential sale. Being up to date on current design trends can maximize your property’s potential, increase ROI, and help you stay ahead of industry trends. Sustainable innovations, modern interiors that maximize space and functionality, and incorporating outdoor living are design trends that can take your property from ordinary to extraordinary and transform properties into high-performing assets. Remember, design is an investment, not an expense. Properties that stand out sell faster, rent at higher rates, and appreciate more over time. Whether you are a seasoned investor or just starting your investing endeavors, understanding the power of design will give you a competitive edge and prime you for success. Design is a strategic tool that directly impacts a property’s value, desirability, and long-term profitability. Incorporate it into each phase of your transaction and allow your creativity to shine through.
CARMEN FIELDS MANAGING EDITOR
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Inside This Issue
FEATURE PAGE 28 Light Wisely CREATE COZY COMFORT OR DRAMATIC IMPACT WITH NATURAL LIGHTING AND STATEMENT FIXTURES.
MICHELE VAN DER VEEN
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C O N T E N T S
OPERATIONS It’s All About the Feels Create a brand that instills trust, comfort, and competency by leaning into (your audience’s) emotions. Skyler Wilson PAGE 8 Empire-Building Starts with Design Success isn’t just about numbers— Ditch the Annual Plan: Win the Year in 12 Weeks When you condense your timeline, you eliminate excuses and see real progress, faster. Jeff Roth PAGE 14 Federal Rule Reshapes Real Estate Closings it’s about how well your brand, properties, and processes align. Jim Tannehill PAGE 12 Financing methods and ownership structures are under the microscope in a sweeping federal update. Gaylene Rogers Lonergan PAGE 18 Now is the Time to Leverage Housing availability, age, and construction gaps give investors an edge when powered by private capital. Christian Faes PAGE 20 So, Your Property Won’t Rent Pricing, prep, and presentation are make-or- break factors—fix them to fill your vacancy. Real Property Management PAGE 24
DESIGN Design for Fire Safety As Los Angeles neighborhoods begin recovery, rebuilding efforts offer an opportunity to reimagine safety, structure, and sustainability. Taylor Miller PAGE 38 Vibrant Trend Blends Nature, Luxury This season invites a return to organic elements, soothing finishes, and thoughtful layers. Lorraine Beato PAGE 42 5 Design Trends to Maximize ROI
Style is not just window dressing— it determines how quickly and for how much your property sells.
PAGE 16
Joel Moyes PAGE 48
INVESTMENT STRATEGY Want to Invest Like a Pro? Start With Their Playbook Top investors break down exactly what they consider before making a move in today’s market. Susan Naftulin PAGE 50
PAGE 38
FUNDING Flip More, Risk Less with 100% LTC Financing
Scale your real estate portfolio faster with no-cash-in fix-and-flip loans. Dominion Financial Services PAGE 54
PAGE 48
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Operations
It’s All About the Feels CREATE A BRAND THAT INSTILLS TRUST, COMFORT, AND COMPETENCY BY LEANING INTO (YOUR AUDIENCE’S) EMOTIONS.
SKYLER WILSON
I t is surprising to still see real estate marketing that looks as exciting as a permission slip. Logos with generic roofs, websites flagged by Google’s SEO gods for crimes against page speed, pitch decks slapped together in PowerPoint with Times New Roman still holding on for dear life. For an industry that deals in millions, the design level often hovers somewhere around “high school yearbook staff.” DESIGN IS NOT DECORATION—IT’S LEVERAGE And yet, design is everything. Not in the way that designers with neck tattoos might tell you, but in a practical, money-moves way. The design of your
VIBE ISN’T A TREND— IT’S A TRUST SIGNAL
brand, your content, your visuals all act as a trust accelerant … or a deal kille r. When someone lands on your Instagram, your website, your email they decide in seconds whether you’re worth paying attention to. It’s not conscious. It’s lizard-brain stuff. If your aesthetic is clean, cohesive, and confident, people stick around. If it’s messy, inconsistent, or confusing, they bounce and probably go give their money to someone who just looks like they know what they’re doing. People don’t buy properties, or portfolios, or investment strategies. They buy feelings . Certainty. Trust. Competence. Safety. Vision. A “vibe,” if you will.
Now, you don’t have to say the word out loud, but your brand still has to create one. A vibe is just a consistent emotional throughline. It’s the look, tone, and style of your content all pulling in the same direction. It’s the reason some brands feel “put-together” without being flashy—and why some $20 million portfolios feel like they were assembled in Microsoft Paint. This is where most real estate investors, wholesalers, and syndicators miss the mark. They’re focused on facts: cash-on-cash return, debt structure, equity splits. That’s all important, but it’s not what gets someone to stop scrolling or take you seriously online.
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People don’t buy properties, or portfolios, or investment strategies. They buy feelings. ... A ‘vibe,’ if you will.”
NO FORTUNE NEEDED The best brands in real estate, the ones that attract capital, grow fast, and stay top of mind have one thing in common: intentional design. Not expensive. Not overproduced. Just thoughtful. Good design doesn’t mean you need to spend $30,000 on a fancy agency or learn motion graphics. It means making a few smart decisions and sticking with them. First, pick a vibe. Are you clean and corporate? Scrappy and local? Boutique with a modern edge? Whatever it is, every touchpoint, logo, social post, pitch deck, even the way you shoot video, should support that tone. Don’t bounce
It’s design that frames the information and gives it weight. It’s design that makes people feel the story you’re trying to tell. People don’t say “that’s a vibe” when they look at a RE/MAX flyer. But they do when they see a house tour with smooth camera shots, well-lit rooms, and tasteful decor. This all adds up to an idea that the person selling this product to me cared enough to show it off well. WOULD YOU INVEST IN YOU? Here’s a fun exercise: Strip away your spreadsheets, your deck, your pitch. Just look at your branding. The colors,
Would you trust this person with a quarter-million-dollar wire transfer? Your brand doesn’t need to be flashy. It doesn’t need to look like a Netflix documentary. But it does need to look like someone cared. That attention to detail is what translates to trust. If you’re sloppy with your branding, what else are you sloppy with? Underwriting? Renovation timelines? This is the unspoken filter every investor and potential partner is running in the background. They’re not just asking, “Is this a good deal?” They’re asking, “Do I believe this person can pull it off?” And whether you like it or not, that decision often happens before they read a single sentence of your pitch.
the logo, the layout of your social feed. Would you invest in you?
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SKYLER WILSON
between styles based on whatever Canva template looks cool that day. Keep your fonts simple. Two, max. One for headers, one for body text. Anything more than that, and you’re not edgy—you’re just hard to read. Embrace whitespace. Just like staging a home, clutter kills value. Your slides, posters, and flyers need room to breathe if you want people to focus. Visual consistency also matters. Using the same set of colors, layouts, and content framing across your materials creates cohesion, and that cohesion is what turns scattered posts into a recognizable brand. And please, ditch the default “Realtor Blue” that everyone’s been using since the Bush administration. Choose a palette that
reflects your personality, not your broker’s dusty old flyer. As for tools, Canva can work if you know your way around a layout. Figma’s a solid step up if you want more control. But honestly? Just hire someone who gets it. Even if it’s just to build your brand guide and a few starter templates. It’ll pay off a hundred times over. Finally, don’t overthink the gear. You don’t need cinema cameras. Use your phone but be intentional with good lighting and clean framing. One simple, well-shot video can do more than a dozen drone shots of rooftops no one asked for. The tools are out there. The difference is whether you treat design like a last-minute task—or a front-line business strategy.
Skyler Wilson is an entrepreneur obsessed with video production and marketing. Wilson founded video production and marketing company Shift Z in 2022 and Retro Current Marketing in 2023, targeting music artists and real estate pros. He offers a fresh perspective, blending creativity, leadership, and processes.
ARE YOU TRYING TO REACH REAL ESTATE INVESTORS? Try advertising with us. Digital • Print • Newsletter • Webinar • Podcast CALL, TEXT, EMAIL TODAY. (816) 398-4130 • sales@thinkrealty.com
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Operations
SPONSORED CONTENT Empire-Building Starts with Design SUCCESS ISN’T JUST ABOUT NUMBERS—IT’S ABOUT HOW WELL YOUR BRAND, PROPERTIES, AND PROCESSES ALIGN.
JIM TANNEHILL
W hen you think of real estate investment, design might not be the first thing that comes to mind. You’re likely focused on market trends, financial projections, and operational efficiencies. Yet design is a crucial factor that can set your properties apart, attract higher-quality tenants, and drive long-term value. Whether you’re flipping, developing, or managing rental properties, understanding and implementing intentional design strategies can significantly impact your bottom line. The challenge, however, is systemizing this aspect of your business. You need a structured approach that aligns your design decisions with your overarching investment strategy. That’s where the Empire Operating System comes in. By
families, or retirees? Each group has distinct needs that should guide your design choices.
integrating a business operating system into your real estate design process, you can make better, data-driven design choices, streamline project execution,
FUNCTIONALITY OVER FLASH. Although high-end finishes can be appealing, practical and durable materials often yield a better return on investment (ROI). Smart layouts and energy-efficient features also add long-term value. PSYCHOLOGY OF SPACE. Colors, lighting, and layout influence emotions and behaviors. A well- designed space can increase tenant retention and justify higher rents. FUTURE-PROOFING. Incorporating sustainable design elements, smart home technology, and adaptable spaces ensures your property stays competitive in an evolving market.
and build a business that thrives both aesthetically and profitably.
THE POWER OF DESIGN IN REI Design is more than just aesthetics — it’s about creating functional, appealing spaces that meet market demand. Thoughtful design enhances curb appeal, increases property value, and fosters a sense of community, which ultimately translates into higher returns. Consider the following key aspects. MARKET-DRIVEN DESIGN. Knowing your target audience is critical. Are you designing for young professionals,
12 | think realty magazine :: may - june 2025
APPLYING THE EMPIRE OPERATING SYSTEM
preferred materials, layouts, and design elements. You can also implement checklists and SOPs for design-related decisions, from selecting paint colors to choosing cabinet styles. Further, project management tools enable you to track design execution, reducing inefficiencies and costly mistakes. DATA-DRIVEN DESIGN DECISIONS. Empire promotes a culture of using metrics to drive decisions. When it comes to design, consider tracking key performance indicators (KPIs) such as time on market before lease, tenant retention rates, and renovation ROI. If you A/B test different design elements in various properties, you can see what yields the best market response. And, collect tenant and buyer feedback to refine your design playbook over time. BUILDING A STRONG TEAM FOR EXECUTION. Empire places a heavy emphasis on “right people, right seats.” Your design strategy is only as strong as the team executing it. Consider hiring a dedicated design lead or working with a trusted interior designer to maintain consistency. You should also train your construction team on your design standards to ensure seamless execution. You can also collaborate with local experts who understand regional trends and compliance requirements. COMPETITIVE ADVANTAGE By integrating Empire into your design processes, you gain a competitive advantage in the real estate investment space. You’re no longer making ad hoc design decisions or dealing with inconsistencies across projects. Instead,
streamlining design choices, increases property desirability and value, and aligns your investment goals with a structured, repeatable design strategy. DESIGN LIKE YOU MEAN IT In real estate investment, design isn’t just about making a property look good. It’s a strategic tool that drives profitability and long-term success. By leveraging the Empire Operating System, you create a structured approach that ensures every design decision aligns with your business goals. The result? A real estate empire that is both aesthetically and financially optimized. As you refine your processes, consider how you can further integrate systemized design thinking into your portfolio. Your properties—and your bottom line—will thank you for it.
The Empire Operating System helps real estate investors scale their businesses systematically. By applying its principles to design, you create a repeatable, efficient, and profitable approach to property development and renovation. VISION & STRATEGY ALIGNMENT. Every successful investment starts with a clear vision. Empire emphasizes setting a long- term goal (your North Star) and breaking it down into actionable steps. When it comes to design, keep these three points in mind: (1) define your core aesthetic and brand identity across all projects, (2) establish nonnegotiable design elements that align with your investment thesis, and (3) set measurable goals for design impact, such as increased rental rates or faster occupancy turnaround. STRUCTURED DECISION-MAKING. Empire introduces a structured approach to problem-solving and decision-making, which is crucial when selecting design elements. You can use the WIN Meeting format to address a variety of necessary decisions. For example, you can regularly review design decisions and their alignment with business objectives. You can also address issues such as budget overruns or delays in material sourcing before they become major problems. And to ensure clear ownership of design implementation, you can assign accountability to team members. PROCESSES & SYSTEMS FOR EFFICIENCY. To scale successfully, you must have repeatable processes. Design should be no different. With Empire, you can create a Standard Design Playbook that documents
JIM TANNEHILL
Jim Tannehill has been an entrepreneur for more than 10 years. He is Empire Certified, Trainual Certified and an expert in LucidCharts. A business coach, Tannehill has consulted with more than 100 companies in many different industries and verticals. As chief operating officer of Empire Operating Systems, Tannehill oversees the complete operating picture for the company and ensures that all Empire clients are moving forward in the Five Phases of Business.
you have a proven, scalable system, one that saves time and money by
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Operations
Ditch the Annual Plan: Win the Year in 12 Weeks WHEN YOU CONDENSE YOUR TIMELINE, YOU ELIMINATE EXCUSES AND SEE REAL PROGRESS, FASTER.
JEFF ROTH
A ccording to the book “The 12 Week Year” by Brian P. Moran and Michael Lennington, having yearly goals doesn’t work because a year is too long to focus on. We tell ourselves stories during the year as well. During the first half of the year, we tell ourselves we have time. Then, in the middle of the year, we realize we didn’t get much done toward our goals and we start to think about how we can make more progress. It is not until the last 12 weeks of the year, when the company we work
for measures our progress or we see that January 1 is approaching (and we realize we are running out of time!), that the real results happen. What if we could get that kind of productivity all year long? That is what “The 12 Week Year” is all about—and we have been practicing its principles in 2025 with favorable results. SETTING AND MEASURING 12-WEEK GOALS To achieve success, you must decide on the two to three areas you are going to
work on for 12 weeks. These areas can be business, personal, family, spiritual, community, or financial—whatever part of your life you want to improve. Set each goal by identifying the outcome you want. Then choose the daily activities or tactics you will track each week that support those goals and outcomes. For example, one of our weekly goals is to have one new investor communicate an interest in working with us to help them build their real estate portfolio in Michigan. The daily tactics we track for that goal include the following.
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“Success by design is infinitely better than a win by chance.” —Om Swami
First, we work on publishing one weekly article of 1,000 words or more on our website. The article is hyperlocal on a topic related to real estate investing or real estate in the area. This, by far, is the number one way we attract clients to work with us. They find us through Google and AI-related searches on real estate topics in the Ann Arbor, Michigan, area, which allows us to explain we service all property types in Michigan. Second, we strive to post one market report a day for a different local community on our social media
relatively affordable opportunities in Michigan. Then, we share that YouTube video on our social media channels. After setting your goals and establishing weekly activities, be sure to track whether you or a team member accomplished each daily tactic for the week. Then, at the end of the week, review how you did for the week. The goal is to achieve 90% completion of all your daily tactics, knowing some weeks will be better than others. You can graph your percentage completion for each of the 12 weeks so you can visually see your
channels, Google business profile for our company Arbor Advising, and on Facebook groups for that community. These community market reports get very high engagement. They provide hyperlocal value on the real estate market and reinforce the ongoing value our brand provides locally. Third, we comment on a YouTube video from a trusted real estate source that mentions Arbor Advising and how we educate our clients on creating financial freedom by building real estate portfolios—especially through still
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progress and pick up the pace if you see the completion percentages slipping. You also want to measure whether you are achieving the weekly goal you set for yourself. As mentioned, our goal has been to onboard one new client each week through our marketing and value-added efforts—and we’ve consistently achieved that in nearly every week we’ve tracked our daily tactics and outcomes. In short, designing for success in this way works.
other tasks that must be done but may not be directly related to your daily tactics. Abandon daily tactics that are not leading to measurable weekly outcomes. You can also add new daily habits before the end of the 12-week cycle. Regardless of whether you make ongoing adjustments, at the end of the 12-week cycle, you will review performance and outcomes and adjust at that time. So, every 12 weeks, you not only measure progress toward your stated goals but also adjust the plan to improve performance. By the end of the year, you willl have completed 52 weekly check-ins and four 12- week reviews—and potentially made several adjustments. This ongoing process ensures progress toward your goals—more so than setting yearly goals and waiting until the end of the year to really knuckle down. WHY IT WORKS Yearly goals generally do not work for most people, teams, or companies because the time period is too long and there is not a good systematic
way to track daily behaviors, measure progress, and make course corrections. Only during the last 12 weeks of the year, when we know our yearly progress will be measured, do we really focus and attempt the goals we set for the year. Setting daily behavior tactics—tracked every day and reviewed weekly—helps you stay aligned with your 12-week goals. This approach gives you clear feedback on whether you’re consistently following through and achieving your desired weekly outcomes. At the end of each 12-week cycle or sooner, you review the results and decide which daily tactics to keep or new ones to add for the next 12-week cycle. In this way, you are measuring and adjusting to your goals weekly and every 12 weeks. By the end of the year, you will be much closer to your goals and have data to use for your yearly planning for the next year. To Your Success!
THE VALUE OF FOUR 12-WEEK PERIODS
The basic idea of “The 12 Week Year” method is focused time compression. You are focused on your daily tactics and their consistent completion every week. Then, at the end of each week, you can determine whether you achieved the measurable result you desired. During the week, you should also block time for strategic planning. Be sure to add buffer blocks for responding to emails and
JEFF ROTH
Jeff Roth is the founder of Arbor Advising in Ann Arbor, Michigan. Arbor Advising is a real estate consultancy passionate about helping clients invest, buy, and sell in Michigan. You can contact Jeff at jeff@arboradvising. com, visit www.arboradvising.com, or subscribe to the weekly newsletter at www.arboradvising.com/subscribe.
16 | think realty magazine :: may - june 2025
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Operations
I n August 2024, the federal government’s Financial Crimes Enforcement Network (FinCEN) announced a new rule that affects residential real estate that is transferred to a legal entity or trust but is not financed. Once in effect, this will constitute a significant change to the way real estate closings will be held and reported in the future.
THE BIG QUESTION: “WHY?”
The bottom line is that bad actors invest in residential real estate to launder funds and hide their identities, which can lead to distorted housing prices
as well as threats to the country’s economy and national security.
According to its website, the mission of FinCen, a bureau of the U.S. Department of Treasury, is “to safeguard the financial system from illicit activity, counter money laundering and the financing of terrorism, and promote national security through strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.”
Federal Rule Reshapes Real Estate Closings FINANCING METHODS AND OWNERSHIP STRUCTURES ARE UNDER THE MICROSCOPE IN A SWEEPING FEDERAL UPDATE.
WHAT THE RULE REQUIRES
Named the Residential Real Estate Rule, this new rule requires a “Real Estate Report” to be filed with FinCEN and records to be kept regarding “certain high-risk, non-financed transfers of residential real estate property to specified legal entities and trusts.”
GAYLENE ROGERS LONERGAN
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The information required to be reported includes, but is not limited to the: ▷ NAME OF THE REPORTING PERSON. ▷ LEGAL ENTITY RECEIVING OWNERSHIP. ▷ BENEFICIAL OWNER OF THE TRUST OR LEGAL ENTITY. ▷ TRANSFEROR (SELLER). ▷ PROPERTY BEING TRANSFERRED. ▷ TOTAL CONSIDERATION PAID. “Non-financed” residential real property transfers made to a trust or legal entity must be reported, unless there is an exemption. Transfers to an individual do not require reporting. The purchase price and property value are of no consequence in this rule. However, “non-financed” transactions include any financing by a lender that is not required to maintain an Anti-Money Laundering Program (AML) and to file Suspicious Activity Reports (SARs). Therefore, most if not all purchases involving hard money loans and private lending to trusts or legal entities as purchasers would require reporting. The party responsible for reporting under the rule depends on the nature of the transaction. If a real estate agent represents a party to the transaction, they have the primary responsibility for doing the reporting. If there is no real estate agent involved, then the next responsible party would be the settlement agent (title
Bad actors invest in residential real estate to launder funds and hide their identities, which can lead to distorted housing prices as well as threats to the country’s economy and national security.”
GAYLENE ROGERS LONERGAN
company). There is a cascading list of responsible parties after that.
Does it apply to all locations within the U. S.?
Yes.
This rule is presently scheduled to go into effect on Dec. 1, 2025.
Gaylene Rogers Lonergan founded The Lonergan Law Firm, P.L.L.C., a real estate law and banking law practice and real estate closing office, headquartered in Dallas, Texas in 2000. She has been serving clients throughout Texas since then. Lonergan has more than 40 years’ experience dealing with virtually every aspect of commercial and residential real estate law, banking, and title transactions. Lonergan holds an MBA from Texas Tech University and graduated cum laude from the Texas Tech University School of Law. Lonergan Law Firm, PLLC, will represent
YOUR NEXT STEP As stated, this is a significant change to the real estate closing process. Both the government and the title industry are developing the procedures required to comply with this rule. When you intend to buy a residential real estate property through a legal entity or trust in a non- financed transaction on or after Dec. 1, 2025, contact a trusted law firm or title closing office to ensure you comply with FinCEN’s Residential Real Estate Rule.
you only after being retained and that agreement is made in writing.
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Operations
Now is the Time to Leverage HOUSING AVAILABILITY, AGE, AND CONSTRUCTION GAPS GIVE INVESTORS AN EDGE WHEN POWERED BY PRIVATE CAPITAL.
CHRISTIAN FAES
R eal estate investing is an attractive investment for most people. Whether you’re seeking passive income or to diversify your investment portfolio, real estate has been the investment of choice for many investors. Investing in real estate requires financing. You will typically need to deal with a mountain of paperwork and tick several boxes to obtain bank financing. Banks are also usually very slow when it comes to providing a loan. If you are a real estate investor looking to capitalize on a real estate opportunity quickly, then getting finance from a bank might not be a workable solution.
MARKET SIZE AND INSTITUTIONALIZATION The U.S. private lending market has grown during the last couple of decades. Key industry observers (including major industry organizations and advisory firms that track fix-and-flip financing) suggest that as of the early 2010s, total private lending volume for short-term residential projects was in the small tens of billions of dollars annually. Although the private lending market cooled to a degree in the latter half of 2022 (much of this attributed to rising interest rates and broader economic uncertainty), there is still a consensus
Private lenders can offer a more streamlined offering because they aren’t burdened with the regulatory and capital requirements banks must deal with. Private lenders can provide flexible financing solutions in an extremely nimble way compared to traditional bank financing. Recent figures show that private lending is well on the rise and is something that today’s real estate investors should consider. Private lenders are key funders in the U.S. fix-and-flip market and also provide other short-term real estate solutions such as bridging finance.
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There’s a clear opening for investors who specialize in quickly revitalizing dated properties... Given that private finance is a key tool for such a borrower, this too bodes well for the strength of the market.”
that it remains significantly larger than it was before 2015. It is now estimated that the annual volume of lending ranges between $40-50 billion a year and that the total transaction volume (including transactions that weren’t funded) is around $150 billion a year. As the private lending market has grown, it has also become increasingly institutionalized. During the last decade or so, institutions have shown an increasing appetite to invest in the loans originated by private lenders. In many respects, this is part of a realization that banks can’t really compete with the new breed of private lenders, who
are far more tech-enabled and agile than a bank could ever hope to be. That said, banks do see real estate bridge financing as an attractive asset class. Rather than lending directly to borrowers, they participate by providing institutional capital to private lenders, enabling those lenders to expand their loan portfolios. As the sector has grown, a wider range of institutions has entered the space, and investor appetite now extends well beyond traditional banks. Last year, the market saw its first publicly rated securitizations of real estate bridge loans, opening the door for a broader group of investors—including pension
funds, insurance companies, and sovereign wealth funds—to participate.
TAIL WINDS FOR INVESTORS Several tail winds drive the private lending market, which is good news for lenders and borrowers who increasingly rely on private finance as a key tool in building their real estate empire.
Some of the key considerations to keep in mind:
UNDERBUILT HOUSING. Multiple studies (e.g., from Freddie Mac, the National Association of Realtors, and others) estimate the U.S. faces a housing shortfall
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of between 3.8 million and more than 6 million homes. This shortage stems from a combination of factors, including underbuilding after the 2008 financial crisis, restrictive zoning, and labor/ material constraints in construction. This means there is a strong demand for new home construction and suggests house prices are likely to remain resilient in the future—a limited supply combined with strong demand provides a solid buffer against significant price declines. INCREASING AGE OF U.S. HOMES. According to the Census Bureau and other real estate research, the median age of owner-occupied houses in the U.S. now hovers around 40+ years, up from roughly 30 years at the turn of the millennium. A large portion of U.S. housing stock was built in the 1960s and 1970s, with many properties needing renovation to meet modern expectations (e.g., open layouts, updated systems, energy efficiency, etc.). This means there is a strong demand for properties to be rehabilitated. LIMITED NEW CONSTRUCTION. Even though new construction is ramping up post-pandemic, builders still face constraints (e.g., labor shortages, high material costs, and local land-use regulations). The result is a slower pace of delivering brand-new inventory, so older homes often remain the primary purchase option for many buyers. INVESTOR REHAB POTENTIAL. With so many houses needing major updates, ranging from cosmetic improvements to bigger-ticket items like HVAC, plumbing, or roof replacements. There’s a clear opening for investors who specialize in quickly revitalizing dated properties and bringing them
to market-ready condition. This is a growing opportunity for investors who are looking to buy and refurbish a house. Given that private finance is a key tool for such borrowers, this too bodes well for the strength of the market. As the private finance industry has grown, the number of lenders and the amount of private financing available to real estate investors has also grown, resulting in a healthy and competitive market—and a range of private lenders for borrowers to choose from. Some lenders can provide attractive pricing, but it may come with more banklike requirements and constraints. Other lenders may be slightly more expensive but can provide extremely flexible funding solutions for almost any real estate investor. When choosing a private lender, consider where their funding comes from. As mentioned, some private lenders are funded by large public securitizations and sovereign wealth funds, giving those lenders an impressive amount of capital that might be some of the best pricing you will find in the private lending market. However, some of these investors also require you to tick a lot of boxes. For a lender to do a publicly rated securitization, the loans in their portfolios need to be very clean loans, so there’s no room for lower FICO scores nor much room for borrowers who are foreign nationals, etc. At the other end of the spectrum is a range of private lenders who have their own balance sheets and can almost act as a private individual making a loan. They don’t have investors that impose the same sorts of constraints on them, so they can make a commonsense assessment
of a loan and a borrower. These lenders can be very straightforward to deal with; however, they will likely have a slightly higher interest rate. At the end of the day, it’s all a balancing act. If, as an investor, you are confident your real estate project has a proper margin, you should be taking a closer look at private lending to determine if it’s a solution.
CHRISTIAN FAES
Christian Faes is the founder and CEO of Faes & Co, an investment firm that builds and invests in technology- enabled direct lending businesses. His team of 200 seasoned experts have been instrumental in building direct lending businesses in the UK, Ireland, Australia, and the U.S. that have amassed over $5 billion in funds under management. Faes also serves as the founder and CEO of Faes & Co’s group company, F2 Finance, a technology-enabled lender launched focused on providing short-term loans to property entrepreneurs and investors. Previously, Faes co-founded LendInvest. Over 16 years, he built it into a leading financial technology company that is now one of the largest nonbank mortgage lenders in the UK. He also co-founded Onate, Ireland’s largest bridging finance company, and founded Fintech Founders, a network for the leading entrepreneurs and founders in the fintech sector.
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Operations
SPONSORED CONTENT So, Your Property Won’t Rent PRICING, PREP, AND PRESENTATION ARE MAKE-OR-BREAK FACTORS—FIX THEM TO FILL YOUR VACANCY.
REAL PROPERTY MANAGEMENT
Y ou’ve listed your rental property, posted the photos, and waited for the applications to roll in—but it’s still sitting vacant. A vacant property means lost income, and the longer it sits empty, the more frustrating it gets.
roadblocks have simple fixes; even minor changes can make a substantial impact. Here are the top five reasons your rental isn’t leased—and how you can turn things around fast! #1: YOUR RENTAL RATE IS TOO HIGH (OR TOO LOW!) The top reason your rental is empty is it’s out of sync with the local market. Rental property investors sometimes get drawn to a property based on the appeal of the deal, rather than on the
appeal of the property to renters. But the key to an occupied, profitable rental property is pricing it correctly. Too high, and renters will look elsewhere; too low, and renters might be concerned there are hidden issues or deception at play. Setting accurate rental rates starts with a comprehensive market analysis, which includes researching comparable properties in your area as well as local economic and demographic factors. There are many online rental market tools that can help you gather the data
So, what’s going wrong?
Long vacancies usually are the result of a few common problems: pricing, marketing, or issues with the property itself. The good news is that most rental
24 | think realty magazine :: may - june 2025
...Investors sometimes get drawn to a property based on the appeal of the deal, rather than on the appeal of the property to renters.”
you need for your analysis, or you could consult a local rental market expert like Real Property Management to ensure you are setting your rental rates competitively and appealing to quality renters in your area. #2: YOUR LISTING ISN’T ATTRACTING ATTENTION Another common reason you are having a challenging time leasing your rental property is your marketing materials are ineffective or out-of-date. Creating
to make your listing stand out with clear, engaging, high-quality text and visuals.
an appealing rental listing requires, at a minimum, professional-quality photos of the entire property, inside and out, and a well-written description of the same. Recycling a listing with outdated, blurry, or low-quality photos can easily drive prospective applicants away. Beyond photos, most successful rentals also use innovative marketing strategies like virtual or 3D property tours to keep their properties occupied. Renters today are drawn to convenience and professionalism, which makes it more important than ever
#3: YOU’RE NOT MARKETING IN THE RIGHT PLACES Marketing in the wrong places is also likely to drive renters away. Listing your property on a rental listing site is a great first step, but relying on just one site also limits your exposure and visibility. To ensure your listing finds quality renters, leverage multiple listing platforms, websites, and social media.
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At a minimum, you should have your own website with your property listings on it, as well as social media accounts that offer fresh content and information about available listings on a regular basis. Which platforms you use will depend on your target demographic, so it is important to understand who you are trying to reach and how they find information about rental properties. To make it even easier, consider partnering with a professional property management company like Real Property Management that has local and national marketing reach built in to every property listing.
If you’re seeing a lot of responses to your marketing but no applications, chances are the problem lies with the property itself.”
process, you can lease quickly and keep vacancies to a minimum.
outside of the property clean and attractive is just as important as updating and maintaining the inside.
#4: THE PROPERTY ISN’T MOVE-IN READY
GET YOUR PROPERTY RENTED!
If you’re seeing a lot of responses to your marketing but no applications, chances are the problem lies with the property itself. Showing prospective renters a move-in ready property is essential to keeping vacancies to a minimum. It’s also important to make regular improvements to keep your rental property competitive in the local market. If you are not being proactive about the condition of your property, chances are you are going to struggle to get it leased. For example, poor maintenance, unaddressed damage, broken fixtures or appliances, foul odors, unkempt landscaping, and outdated rooms can all drive prospective renters away. The good news is that even simple upgrades can make a property instantly more inviting. Fresh paint, including on the exterior, new fixtures, proactive property maintenance, and a deep cleaning can all go a long way toward reducing vacancy rates. And don’t forget that curb appeal matters! Keeping the
#5: THE APPLICATION PROCESS IS TOO
Keeping a rental property occupied is essential to consistent profitability. Fortunately, with just a few key adjustments, you can improve your occupancy rates and attract great tenants to your properties more quickly. Of course, one of the easiest ways to ensure your property is leased year-round is to enlist the services of a professional property management company. Contact your local Real Property Management office today to get expert advice, pricing guidance, and more information about all our quality services. Don’t let your rental sit vacant—contact us today and get your property back on track!
COMPLICATED OR STRICT A fifth common reason your property isn’t leasing is the application process. It may sound surprising, but an overly complex or rigid application process can be enough to make potential tenants change their mind about renting a property. That is not to say that your screening process should be lax, but you should do your best to streamline the applicant’s end of the process. For example, use an online application system that allows applicants to complete and submit required documents in one place. It’s also important to be transparent about your rental requirements up front. Finally, don’t forget about the importance of good communication. Your tenant relations start with your very first interactions. By balancing thorough screening with a streamlined and welcoming application
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IF YOU HAVE
ONE OF THESE AND
THEN YOU HAVE
THE LATEST INDUSTRY TRENDS, HONEST INSIGHTS AND NEWS ON DEMAND .
thinkrealty.com | 27 WHEREVER YOU LISTEN TO YOUR PODCASTS
FEATURE
Design
28 | think realty magazine :: may - june 2025
Light Wisely CREATE COZY COMFORT OR DRAMATIC IMPACT WITH NATURAL LIGHTING AND STATEMENT FIXTURES.
MICHELE VAN DER VEEN
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H ow you light a home can make or break your project’s overall look, but with so many factors at play in every project, it’s easy to see how this crucial component can be overlooked. Put simply, illumination is making something visible or bright by shining light on it. The sun, light fixtures, etc. can serve as light sources. Applying the following simple lighting tips will pay off for you in the end.
MAKE A STATEMENT There are thousands of lighting fixtures to choose from—don’t be afraid to make a bold statement. Keep in mind, however, that because light fixtures are an element of a home’s design, they need to complement the style of a home, creating a desirable ambience and supporting specific tasks. Artwork, fireplaces, and even strategically painted accent walls can benefit from being properly lit, for
example. Placing a wall reading light over the head of a bed frame or centering a large chandelier in the middle of a great room, primary bedroom, or bath will help to create interest or drama depending on the feeling you wish achieve. LIGHTING AT DIFFERENT LEVELS Gone are the days when rooms featured a single light fixture. Yes,
30 | think realty magazine :: may - june 2025
most rooms do still have a hanging light fixture, but strategically adding wall lights and can lights, for example, can create interest and force the eye to work its way around a space. Lighting at various levels or angles (often referred to as “layered” lighting”) creates a balanced space, adding warmth and functionality to any room. Typically layered lighting is achieved using a combination of ambient, task, and accent lighting. Because a house is to be lived in more than it is to be looked at it, it is important not to focus too much on ambient light. Ambient lighting is the primary source of lighting in a room, creating overall illumination. Focusing too much on this type of lighting results in “dead corners” the light doesn’t reach. Not lighting these corners detracts from your room’s aesthetics and even functionality.
One way to avoid dead corners is to add can lighting close to the walls, allowing that light to splash alongside the wall itself. Can lights also give the room a sense of depth as it takes away the dead corners. Also known as “recessed lighting” or “down lights,” can lights are installed flush in the ceiling. HEIGHT CONSIDERATIONS The height at which you hang your light fixtures impacts a room’s overall look. Pendant lighting, for example, is a “go to” for kitchen island lighting. But they are effective only if you hang the pendants at the correct height. Hanging them too low can create situations in which you are forced to work around them or try to see around them. On the other hand, hanging them too high will make them less noticeable and less effective as a source of light for the island. There are sets of rules to follow when it comes to hanging lights for each
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