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The Biden’s Administration’s Plans to Combat Workforce and Low-Income Housing

The Biden’s Administration’s Plans to Combat Workforce and Low-Income Housing
The Biden-Harris administration released a statement of September 1st, 2021, announcing immediate steps that would increase the affordable housing supply. The administration has recognized that major investors have stepped up to purchase real estate, such as urban and suburban single-family homes, and convert them into rental properties. However, the government has also recognized that this may have led to a shortage of affordable housing. In a White House statement, it was revealed that “One out of every six homes purchased in the second quarter of 2021 was acquired by investors.” This has created a limited supply, which drives up pricing.    However, the administration recognizes there is more to the dilemma than investors buying up most of the supply. The increase in material costs, labor shortage, the global pandemic, and prohibitive zoning laws all add to the problem. Therefore, more can be done to increase the affordable housing supply.  They announced steps that “create, preserve, and sell to homeowners and non-profits nearly 100,000 additional affordable homes for homeowners and renters over the next three years, with an emphasis on the lower and middle segments of the market.”   These steps include giving federal agencies the resources and authority to:  Relaunch partnership between the Department of Treasury’s (Treasury) Federal Financing Bank and the Department of Housing and Urban Development (HUD) Risk Sharing Program Expand financing through Freddie Mac, Fannie Mae’s and the Federal Housing Administration’s (FHA) Leverage existing federal funds Explore federal levers to reduce exclusionary zoning Launch learning and listening sessions with local le......
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How Can Landlords Mitigate Their Losses Now That the Eviction Moratorium Has Ended, or Will Be Ending Soon.

How Can Landlords Mitigate Their Losses Now That the Eviction Moratorium Has Ended, or Will Be Ending Soon.
The nationwide eviction moratorium had prevented families from being removed from their homes, helping families face pandemic-related financial hardships while mitigating the risks of further spreading the virus when people were forced to move out. People who took advantage of the measure will still have to pay their landlords the total amount accrued during the moratorium. Since the CARES (Coronavirus Aid, Relief, and Economic Security) Act was introduced on March 27, 2020, the eviction moratorium deadline has been extended multiple times. The extension from June 30, 2021, to July 31, 2021, was the third time it was extended. On August. 26, 2021, the U.S. Supreme Court overturned a moratorium on evictions ordered by the Centers for Disease Control and Prevention (CDC) targeting areas with high transmission rates. In a 6-3 vote by the Supreme Court, the moratorium will no longer be extended. With the moratorium ended and the pandemic still ongoing, landlords worry that their tenants may still not keep up with their contractual obligations. Tens of billions of dollars of rental relief were made available to struggling tenants; however, as of August 2021, only $3 billion of the allocated $46 billion rental relief fund has made it out. Each state has its own process for disbursing the relief funds. Helping Tenants Apply for Rental Relief Unfortunately, gaps remain in the program as many citizens either don’t know how to apply for it or don’t know if they are eligible. One of the main challenges, particularly low-income tenants with no internet acc......
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How to Combat Workforce Housing Shortage in Major Metros

How to Combat Workforce Housing Shortage in Major Metros
Workforce housing is not to be confused with affordable housing. The best definition for workforce housing is “housing that is affordable to households earning 60 to 120 percent of the area median income.” However, that median may vary by state. Unfortunately, major metros still struggle with filling the gaps with workforce housing programs. Recently, housing prices have outpaced income in many major metros around the U.S., causing a housing shortage for those trying to find affordable housing close to their work. The housing crisis has been discussed extensively by politicians and economists alike. From connecting investors with developers to partnerships between building owners and tenants, creative programs can help combat the workforce housing shortage in major metros. Let's look at some of the solutions that experts feel can help keep the workforce housing shortage under control. 1. Leverage technology that helps developers build faster for less New construction technologies and structural frames may be the answer to building better and faster. Innovative materials may also prove to be more affordable without sacrificing durability and quality. 2. Remove administrative and regulatory barriers that make it challenging to build more homes and apartments cost-effectively A good place to start would be automating the local, state, and federal systems that analyze the planning and zoning codes and reducing processing time. If the processing of legal analysis could be shortened from months to weeks or days, less time and money would be wasted waiting on whether housing can be built on a particular property. 3. Pro......
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HOW TO BUY YOUR 1st COMMERCIAL PROPERTY

HOW TO BUY YOUR 1st COMMERCIAL PROPERTY
Commercial property is an asset that is real estate referred to use as business activities. It serves as land for rental purposes and generates profit. Commercial property can be malls, industrial estate, manufacturing stores, grocery stores, and many more. Investing in commercial property sound always healthy, but the cost of such property is far higher than residential property. But it can aid in getting a long-term source of income. Buying a commercial property is always a tough row to hoe. And some serious points need to be considered while investing an enormous amount in commercial property. There are five primary types of commercial investments, which are as follows. OFFICE The office building can be small or big in a different commercial zone. INDUSTRIAL A commercialized industrial area can be a storehouse or a manufacturing site. RETAIL It includes shop around the corner of your house to any regional shopping center. HOSPITALITY It includes hotels that attract tourists and earn you a rental payment. MULTIFAMILY It includes apartments that can be used for several desired purposes. After deciding on the commercial property that attracts you, you Have to build up a strategy to invest in it. Some important points that need to be considered are as follows.   LEARN SOME COMMERCIAL REAL STATE VOCABULARY There are a lot of learning things that are required by a person to be familiar with. Some major terms are as follows. DEBT SERVICE COVERAGE RATIO It tells how much income will help you in covering the......
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What Challenges Can I Expect When Buying CRE?

What Challenges Can I Expect When Buying CRE?
Buying commercial real estate can be an exciting opportunity if you are venturing into the CRE scene. There are a few challenges that you may encounter, such as qualifications for a loan, financing issues like amortizations, down payments, and interest rates. We will be discussing these challenges below.   Qualifications for a Loan Start with making sure that you have a good credit score before venturing out into any business. Though there are cases where many choose not to loan from a bank, you may still need to go through some bank assistance if the property owner requires that the payment goes through bank financing. It is also always best to be prepared in case you may need a loan in the future. If you decide to get a loan, you will need to make sure it is clear what it is for and how it will be used -- the bank will ask these questions. It is also advisable to do as much research as you can moving forward and due diligence on the area where the property is standing. Besides a good credit score, you will also need to convince the leader that you will pay back the CRE loan.  The next step is to have the requirements to qualify for a commercial real estate loan. You will need different applications and supporting documents such as a business plan, personal tax returns, and other legal documents. If you already have other businesses, they may ask to see your business......
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Why You Should Market for Your Property

All too often I receive inquiries from a potential seller that is looking to “Get the Highest Price” for their property, but does not want to list it, or market the property.  This seems counter intuitive as the basic law of economics is supply and demand.    Although there is not much an average seller can do to affect the supply line, they can create demand by using a good agent.  I started my career in real estate auctions in the late 80’s through the mid 90’s.  During that time, I was at first surprised when properties we took to auction (a method that was deemed as a “fire sale”) consistently sold for higher prices than neighboring properties, and in many cases sold at higher prices than what they were previously listed before going to auction.  As I thought about it, it really did make sense, my economics classes in college explained exactly what was going on.  The supply chain didn’t change, but by marketing the property, and creating a pent up demand the chances for a sale greatly increased.  We’ve seen this over and over the last few years in this current “Sellers” market.  Almost to the point where we now receive as many calls from investors saying they only want to look at “off market” deals, believing they will get a better price without other competing investors.  So it seems pretty easy… If a seller wants the highest price, they need to make sure the property is actively exposed to as many people as might be intere......
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Difference between Commercial and Residential Real Estate Management

Difference between Commercial and Residential Real Estate Management
If you have ever owned a house or duplex that you have rented out and you feel like you are ready to move to the next level I have a few guidelines to help you get started. First and foremost, you’ll need to decide what asset class you would like your next investment to be in. Here are a few different types of assets that you can focus on:   1. Office  2. Industrial  3. Retail  4. Multifamily  5. Hospitality   The Commercial Leases  You will find the commercial lease is a lot longer and much more detailed than your residential lease and it will spell out common area maintenance fees, increases in rental amounts at certain dates, concessions, tenant improvement work, and just about everything else. Even in the same building, the terms negotiated on a commercial lease can substantially vary from one tenant to the next. There is a good chance that your tenant will have an attorney review all lease documents and you will have a few revisions before the lease is actually executed. Commercial leases are either a gross lease (the owner pays all the utilities, taxes, and insurance), a net lease, or a modified gross lease. There are several types of net lease, but the one you’ll hear about most often is a triple-net lease where the tenant pays their proportional share for everything (taxes, insurance,utilities maintenance, repairs and capital improvements) on the building. A modified gross lease is where a tenant may pay their share of ......
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Things a Successful Commercial Real Estate Agent Should Keep in Mind

Things a Successful Commercial Real Estate Agent Should Keep in Mind
In the past, the main role of a CRE Agent was to help their client find a property. This sounds quite straight forward and it typically was.  An agent would first utilize their market knowledge to see if they knew of any spaces/properties that might meet the criteria of their client, and if not, begin to reach out to all of their contacts to see if they had anything, or if there was anything new coming out. If all else failed, they would resort to sign chasing, driving the areas their clients were interested in, and call on the signs on buildings to see what, if anything, was available.  Along came the internet which dramatically changed how this works now.  The control of information no longer flowed just through the agent. Unfortunately, many agents didn’t adapt to the change and continued to see their role as just finding a property for their client. Many clients also kept this mentality, thinking that an agent's role was just to find a property. This, of course, led to many clients thinking they only needed an agent to find a property and if they could find one then they wouldn’t need an agent and could get a better deal on their own.  Good agents realize that finding a property for their clients is just a small part of what they do. Finding the right property is a bigger role, and their most value lies in negotiating the best deal for their client.  Finding the right pro......
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How to Start Investing in Real Estate: Beginner's Guide

How to Start Investing in Real Estate: Beginner's Guide
Being a real estate investor is one of the leading wealth creators in the United States so many of us want to know how to become the next great real estate investor. Some have bought books and watched videos on how people have made their fortune in the industry, others have applied what they know to works in their business towards real estate. We have learned over the years that there truly is no better way to learn the real estate industry than simply going and being part of a property management team. PLUS…. you are getting paid to learn!  By being part of a property management team you can learn everything you should know from marketing, maintenance, leasing and operations. When you find a company that you feel is a good fit for you sit down with the management and tell them that you want to learn everything from top to bottom about real estate investing from them and if they seem receptive to your idea then jump in and prepare to learn. We would recommend you start at the bottom and work you way up.  In their leasing department, learn how a vacant unit is prepared for market. Price the unit and then learn how to advertise the unit to the right individuals. After you have spent enough time in leasing look into moving to an assist manager position, while in this position learn the ins and outs of the daily operations of the property and how you can i......
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Things you should know before going back to the office after the pandemic

Things you should know before going back to the office after the pandemic
Let's face it; there is no reset button. The pandemic that put most of the world on total lockdown in 2020 changed so many lives. As we ease our way into the new normal, there is hope that someday, things will go back to the way it was. In the meantime, we move forward with additional health precautions, more resilience, and a more vital empathy for those who lost much more than time.    While some businesses survived by moving onto online platforms, others have been anticipating re-opening their physical stores such as gyms, recreation stores, retailers, restaurants, etc. These businesses that need to have the regular brick and mortar set up to generate income will bring thousands from stay-at-home setups to finally return to the workplace. It sounds easy, but some things may take some time. Here are a few tips for going back to the office after the pandemic. 1.   Ask Where Your Employees Stand Before calling everybody back to the office: 1.    Make sure the company has made guidelines regarding vaccination. 2.    Discuss options with employees who are not open to getting vaccinated or are unable due to medical reasons. 3.    Before requiring employees to return to the office, ask if this is possible for everyone. While some businesses have resumed, schools and daycare may still be closed, leaving parents no other place for their children when they are working. 4.    Check with your local municipality regarding their laws on re-opening, and make sure......
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