Assisted Living Investments
The Wynn lagoon will use less water than the golf course it’s replacing. The resort is expecting to increase earnings from $5 million to $300 mil- lion or more annually based on these changes. • > Continued from :: PG 34 Investor Spotlight: Stephen Rosenberg, Founder & CEO, Greystone Capital estate by providing capital, contractors, and construction to help them rehab their units, make them affordable, make housing in the area accessible. Housing affordability is a crisis in the United States, and we feel it is one of our responsi- bilities to help resolve it when possible. We also believe it is our responsibility to take a real, true interest in people’s lives, to give our investors and our em- ployees the best opportunities possible, and to actively, with dedication, give back. • > Continued from :: PG 49 The Advantages of "Middle Market" There have been rapidly de- clining vacancy rates in sub- urban commercial properties, and we’ve seen no evidence that this trend has changed in more recent periods. STAY IN THE MIDDLE In my experience, the cost of debt financing for middle market transactions is usual- ly only a little higher than for larger property transactions, and the higher cap rates for Commercial Real Estate
middle market properties can create posi- tive leverage advantages
lawsuits from tenants for
buyer does not have to make the purchase if they cannot get approved for financing. Most buyers do not waive their mortgage contingency unless they have cash. This does not come without risks. Some buyers have family members willing to loan them funds from investment accounts or savings with the plan that they will finance the property once it’s closed. Most investment accounts for retirement the owner of the account will face heavy tax penalties. This is a tight timeline that would require an incredibly competent lender, but it’s doable and can make the difference between getting an offer accepted or not. DON’TWAIVE CONTINGENCIES WITHOUT UNDERSTANDING YOUR OPTIONS If you are looking for a deal, or you are looking to get an offer accepted when there are several more on the table, you may want to dis- cuss waiving some of these contingencies with your realtor. In a seller’s market, it is all about making your offer the most attractive, and price isn’t the only factor in doing so. • > Continued from :: PG 85 5 SimpleWays to Find More Deals require that funds be re- turned within 60 days or
Use 18-by-24-inch signs with simple sayings that are easy to read and understand. For example, “Jana buys hous- es, closes fast.” You should be able to get about 500 signs made for about $1,500. Then, be strategic! Map out (on an actual map) where you want to place the signs and hire a small crew to put them out on Friday evening. Be prepared to take them down by Sunday, since most cities will remove them and potentially fine you if they
> Continued from :: PG 33 Case Study: AUnique, Master-Planned
> Continued from :: PG 92 The Key to Successfully Owning 8,000
unsafe living conditions. There are many options for working
SUCCESS FACTOR #10 OFFER VALUE-ADD SERVICES AND PROGRAMS Value-add extras can serve as revenue producers, increase demand and speed of leasing, and contribute to tenant retention. They can be bundled with your basic service, offered as add-ons, or simply made available through third-party service provid- ers. Value-adds may include food delivery, beauty services, outings for entertainment, exercise and fitness solutions, laundry, internet and con- nectivity solutions, furniture packages, and more. •
Subdivision Investment
Multifamily Units Most long-term real estate investors use some form of credit to fund the purchase of their investment properties. Determining which form is the best usually depends on the circumstances of the deal. The more important thing to remember when using credit is the advice of my mentor, and only leverage when you are buying income-produc- ing assets. Otherwise, your borrowing may lead to your owing more than you bar- gained for! •
in that sector. Middle mar- ket opportu- nities can thus potentially provide
around the home inspection contingency, including
These crystal lagoon facil- ities are attractive both for their visual and recreational appeal, but also because they use far less energy and far few- er chemicals than swimming pools (on a per-volume basis) while maintaining a hygien- ic, pH-balanced, tempera- ture-controlled water feature. Furthermore, this massive lagoon will use about 30 times less water than the 18-hole golf course originally planned for the development. We needed financing for such a large undertaking, so we partnered with a company currently developing four similar communities in Flor- ida. We decided to go with an eight-acre crystal lagoon holding about 18 million gal- lons of water, and, in addition to the amenities previously described, we will install colored-water fountains. WATERWONDERS AREAN EMERGING DESIGNTREND We are not alone in our desire to keep up with trends. In Las Vegas, Wynn Resorts has plans to replace its 18-hole golf course with a 38-acre Crystal Lagoon. The $1.5 bil- lion Paradise Park project will also include a new 1,000-room hotel and 250,000 square feet of meeting space, restaurants, and other attractions like water skiing, paddle board- ing, zip-lining, and nightly fireworks shows.
for greater common equity and cash flow “cushions” relative to a property’s purchase price and current potential yield. This possible advantage is of particular benefit to middle market projects involving value-add strategies, where renova- tion efforts cause much of the expected upside to be derived from a property’s appreciation potential and not current cash flows. • > Continued from :: PG 51 3Ways to Use Contingency Clauses to Safely Make an Offer No one wants to be told that their home has major issues or have a home that is stigmatized because it went back on the market post inspection, so sellers find this contingency’s removal highly attractive. However, the issues that arise from waiving an inspection can be significant. If you are look- ing to flip a home, you need to be sure that the property you are buying doesn’t have any major structural defects that can make it an unprof- itable project. Even if you are purchasing a home to rent, you want to make sure you know about the health of all the major systems so you don’t end up updating everything or face potential
doing a pre-inspection prior to making an offer. Pre-inspec- tions are expensive, but nothing compared to purchasing a home you know nothing about. Expert Tip: If you are looking to buy a home that is being sold as occupied and do not have the option to even view the inside of a property before purchasing, you can always go to the town hall and look at permits that have been pulled for the property in recent years to get an idea of the age of different systems. You can even ask neighbors what they may know about a property. I have gotten a lot of amazing information on foreclosures by asking local neighbors. For one property, I was told the previous owners had moved due to a rampant mold problem caused by a tree root growing into the foundation. It wasn’t obvious when viewing the property, but it did help my client get an accurate view of the work needed on the property. Waived inspections can add as much as $15,000 in value to your offer. I would never tell a buyer to waive an inspection, but if they insist to make their offer super competitive, I would recom- mend the pre-inspection. Mortgage Contingency This contingency states that a
are still out on Monday morning. Try to answer as many of these calls from
these signs live
and in person.
ADVERTISER INDEX
PRO TIP: Place your signs in high-traffic areas, such as near a Wal-Mart. These five lead-genera- tion strategies will not just help you get deals into your business directly. They also promote you as an active, local real estate investor and will help you scale your business. Mar- keting should not be a daunt- ing task. If you are new to real estate investing, pick one method and run with it until you have perfected it before starting a new one. If you are a seasoned investor, hopefully this will give you ideas on how to expand the lead gen- eration you are already doing. Happy hunting! • > Continued from :: PG 89 5 Success Factors for Residential
84 Lumber
2
Affinity Loss Prevention Services
85 27
American Association of Private Lenders
Auction.com
IMN Supplement: 2
Bronchick Law Firm DHLC Investments
11 99
Greystone
IMN Supplement: 10, 16; 59, 86
Home Invest
93 31
Memphis Investment Properties
My 1031 Exchange
3
National Real Estate Insurance Group Norada Real Estate Investments
52 51 66 15 26 87 57
Private Money Lending Guide Radius Renovation Group Real Property Management
100
Real Wealth Network
Recovco Direct
RentFax
Secure Pay One
IMN Supplement: 4-5 6, IMN Supplement: 11
Think Realty
US Probate Leads
89
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