Rental Property Investment Resources

Real estate investors/developers often need to think “outside the box”

Case Study: Developer sees great potential in second home segment

In doing research for a new line of country homes, Trendmaker found 3,400 parcels of land in the Round Top area that hadn’t been built on and whose owners lived in other cities.

It was part of what gave the builder the confidence to enter the rural central Texas housing market.

“With baby boomers retiring and Texas leading national population growth trends, we see tremendous potential in the second-home market,” said Will Holder, president of Trendmaker Homes.

The company is launching a line of manufactured homes called Texas Casual Cottages for buyers who own their own property in country settings where it can take longer to build a second or retirement home because the locations are so remote.

“You don’t have to worry about it getting framed and then deer season comes and it sits for a month, and it’s out in middle of the woods and stuff gets stolen,” Holder said.

The homes are being built off-site by GroundForce Building Systems of Navasota. Trendmaker will deliver and assemble them at the home sites, as well as build porches and handle other infrastructure issues.

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They will have metal roofs, large porches, pine floors and wood walls, along with modern finishes like open family room and kitchen combinations, large bathrooms and walk-in closets.

Floor plans will range from a 450-square-foot guest cottage to a 4,500-square-foot farmhouse. And prices will start in the $50,000s for a small cottage and reach more than $300,000.

A model home will open in Round Top next month on Texas 237 across from the Big Red Barn, a well-known antiques center.

If sales go well, Holder said, he would like to expand the product into other parts of Texas, including Corpus Christi, the Canyon Lake and Lake Livingston areas, Galveston and Bolivar.

Longtime Houston real estate agent Sandy Reed, who moved to Round Top in 1990 to renovate and sell historic houses, will serve as sales manager and design consultant for the new home line.
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Source: http://www.chron.com/disp/story.mpl/headline/biz/7027826.html

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Mitsubishi Estate Co., Japan’s biggest property developer by market value, said it will set up a real estate fund in the U.S. this year and seek takeovers overseas to counter declining demand at home.

“We cannot just sit back and be satisfied with what we’ve built over the years at home as demand will probably remain weak and competition will increase,” Chief Executive Officer Keiji Kimura said in an interview in Tokyo on May 19. “We believe this is a good time to start building up our global platform.”

His plans come as commercial property sales in Manhattan, the biggest and most expensive U.S. office market, tripled in value in the first quarter from a year earlier. Office vacancies in Tokyo are at a record high and commercial land prices declined to the lowest in at least 36 years.

The firm may initially invest in about two buildings on the East Coast through its Rockefeller Group Investment Management unit, said Kimura, 63. He declined to elaborate on the size of the fund. Mitsubishi Estate is also in talks with several real estate asset management firms in the U.S. and Europe for possible takeovers and alliances, Kimura said.

3 Crucial Keys To Investing Success: The most successful real estate investors #1. Pick a niche like foreclosures, probate sales, commercial property, tax certificate sales and the like – #2. Learn all there is to know about that niche – #3. Exploit the heck out of it for maximum profits.
Click here to get proven help with selecting the most lucrative real estate investing niches

P.S. Need money for your deals?
Click here for the best sources for money or zero down real estate sources

The firm aims to increase operating profit from overseas business to about 20 percent of the firm’s total, from 7 percent last year, he said.

‘Very Transparent’

“The U.S. real estate market is very transparent,” said Masahiro Mochizuki, a real estate analyst at Credit Suisse Securities (Japan) Ltd. in Tokyo. “It’s a good move for the company to seek expansion in that market rather than some of the Asian markets that are less so.”

At home, Mitsubishi Estate, the biggest landlord in Tokyo’s Marunouchi central business district, is planning to start its first private real estate investment trust, allowing it to securitize property investments, Kimura said.

In February, Nomura Real Estate Asset Management Co. announced plans to start a private REIT, Nomura Real Estate Private REIT, nine years after Japan opened the REIT market to developing securities pioneered by the U.S. in the 1960s.

“Private REITs are good vehicles in a way that it doesn’t get affected by the market prices,” Kimura said. “We’re starting to see some interest from pension funds to invest in real estate, so this could be a good offering.”

The TSE REIT Index, which tracks 37 funds, had a record market value of about 6.79 trillion yen in May 2007, compared with about 3 trillion yen today.

Profit Forecast

Mitsubishi Estate’s net income dropped 74 percent to 11.9 billion yen in the year ended March 31 as the firm wrote down losses on projects in Tokyo. It forecasts profit to jump more than fivefold to 63 billion yen.

Tokyo’s office vacancy rate rose to a record high of 8.82 percent in April, according to Miki Shoji Co., a Japanese office brokerage company. The number of condominiums put up for sale in Tokyo and surrounding areas rose 23 percent in April from a year earlier, a third straight monthly gain, according to Real Estate Economic Research Institute.

Japanese commercial land prices declined 6.1 percent in 2009, more than the 4.7 percent drop a year earlier, the Ministry of Land, Infrastructure, Transport and Tourism said in a report released in March. Values are at their lowest since the ministry began collecting comparable data in 1974.

Signs of Rallying

By contrast, the U.S. property market is starting to pick up. About $3.3 billion of transactions priced at $10 million or more were closed or went under contract in the first quarter, almost matching the $3.5 billion sold during the whole of last year, New York-based property broker Cushman & Wakefield Inc. said in a report on April 6. About 5.7 million square feet (529,000 square meters) of offices were leased in the first quarter, 84 percent more than a year earlier.

“We expect the condominium market in Japan to slowly pick up, but we will never see the kind of growth we used to see at its peak,” said Kimura. “In the U.S., we’re starting to see some investments return to the market.”
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Source: http://www.businessweek.com/news/2010-05-21/mitsubishi-estate-plans-u-s-property-fund-takeovers-update2-.html

Opportunity is knocking for smart investors

There are profits to be made for smart real estate investors who know how to find and finance commercial properties that are bank foreclosures, short sale prospects or are owned by other distressed sellers.

Shorten your learning curve and avoid costly mistakes with knowledge from seasoned investing pros. Take a look at these courses:

# Commercial Property Foreclosures The next real estate bubble starting to burst is commercial real estate. Learn how to buy commercial property short sales and pre-foreclosures for pennies on the dollar with 100% financing without good credit and without any real estate experiences or licenses needed.
#####

# Commercial Property Buildings Learn how to buy office, warehouse and retail buildings with no cash and no credit. Right now the most profitable units are retail stores, small office space and smaller industrial spaces like warehouses of 3,000 square feet and under.
#####

# Apartment Buildings Learn how to start making $24,000 per month (or more) in passive, cash flow, by investing in apartment buildings with no cash or credit within 90 days.
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real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors

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Laura Pomerantz, a principal and founding partner of PBS Real Estate LLC., says it’s time for REITs to invest in NYC commercial real estate

In a recent blog post on forbes.com, Pomerantz, shared her positive outlook.

Pomerantz noted that New York’s economy is on the mend, with a strong stock market and employment improving. She sees that the mood is clearly changing. The stocks of New York-centric commercial REITs have been big winners. In the last 12 months, Vornado Realty Trust (VNO) has jumped by 60%; Boston Properties (BXP) gained around 60%; And SL Green (SLG) climbed by 180%.

Investors can obtain New York City commercial REITs at a generous discount

Despite the gains, New York REITs have plenty of more room to grow. In fact, with underlying dynamics poised to push asking rents higher, a rare window of opportunity has emerged in which investors can obtain New York City commercial REITs (Real Estate Investment Trusts) at a generous discount.

Asking rent for prime commercial property space should rebound

Beginning in mid-2011, asking rent for prime commercial property space in New York City, which can buoy or sink a REIT’s value, should rebound, marking the beginning of a steady rally, according to Real Estate Econometrics, an analytics firm tracking commercial real estate. By 2014, asking rents are expected to climb by more than 20% reaching $84.10 per square foot. Even at this point, prices will not have hit their upper echelons–a peak of more than $91 per square foot in mid-2008.

Property managers still rely on lower rents and concession packages to attract nervous tenants but these should fade away by mid-2011

By 2011, however, Pomerantz thinks tenants with pending lease expirations will race to renew in hopes of securing favorable rates–particularly those who want more space. With a healthy dose of demand back in the market, concession packages should fade away by mid-2011. REITs will again be in a position to make deals that create revenue and add to profitability.

Meanwhile in Downtown Manhattan, One World Trade Center (formerly known as the Freedom Tower) is slated to open its doors in 2013, adding 2.6 million in new office space to the mix. Combined with a handful of other large lots of space expected to become available, vacancy rates in the Financial District are expected to spike higher. While this usually spells trouble for landlords, Real Estate Econometrics expects overall asking rents in NYC to climb. That’s because the incoming space is better quality to what’s currently available, and will command higher rents.
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Source: http://blogs.forbes.com/investor/2010/05/21/buying-time-for-nycs-commercial-reits/

Opportunity is knocking for smart investors

There are profits to be made for smart real estate investors who know how to find and finance commercial properties that are bank foreclosures, short sale prospects or are owned by other distressed sellers.

Shorten your learning curve and avoid costly mistakes with knowledge from seasoned investing pros. Take a look at these courses:

# Commercial Property Foreclosures The next real estate bubble starting to burst is commercial real estate. Learn how to buy commercial property short sales and pre-foreclosures for pennies on the dollar with 100% financing without good credit and without any real estate experiences or licenses needed.
#####

# Commercial Property Buildings Learn how to buy office, warehouse and retail buildings with no cash and no credit. Right now the most profitable units are retail stores, small office space and smaller industrial spaces like warehouses of 3,000 square feet and under.
#####

# Apartment Buildings Learn how to start making $24,000 per month (or more) in passive, cash flow, by investing in apartment buildings with no cash or credit within 90 days.
########
real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors, new year city commercial real estate

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Former executive, Adam C. Hochfelder, was once a rising star in Manhattan’s real estate commercial world. At his peak, Hochfelder, managed or had ownership stakes in $2.7 billion worth of skyscrapers.

Hochfelder pleaded guilty to stealing more than $18 million from banks and investors, including relatives and close friends, to cover debts and finance his lifestyle as a mogul.

The former executive, Adam C. Hochfelder, 39, pleaded guilty to 18 counts of grand larceny and schemes to defraud investors; he was accused of misrepresenting his personal wealth to obtain loans and investments. Justice Michael J. Obus of State Supreme Court in Manhattan said he would consider a prison sentence of 4 to 12 years.

It was a fast fall for Mr. Hochfelder, a Long Island native and University of Pennsylvania graduate who was associated with an enviable real estate portfolio in his 20s. By his 30th birthday, he had taken over the office once occupied by the renowned skyscraper owner Harry B. Helmsley and was socializing with some of the city’s biggest real estate names.

Plagued by his own demons

According to Mr. Hochfelder’s lawyer, Marc A. Agnifilo, a soured partnership with the real estate investor Peter S. Kalikow led Mr. Hochfelder to buy out Mr. Kalikow in 2002 for far more debt than he could handle. Court records show that Mr. Hochfelder also used some of the money investors placed with him to pay for perks like his sons’ school tuition and private jets.

Mr. Hochfelder also suffered from a severe cocaine addiction that sent him into rehabilitation and required several operations to repair his nose, according to court filings.

The Manhattan district attorney’s office said Mr. Hochfelder forged documents and lied about the collateral he owned or the deals he was undertaking to obtain loans and investment capital fraudulently.

At his courtroom appearance on Friday, Mr. Hochfelder spoke in a low voice as he read the names of investors he had bilked, including some relatives. As he spoke, his father, James L. Hochfelder, held his head in his hands.

In a statement, Mr. Agnifilo said Mr. Hochfelder had already paid back $15 million to investors and would pay back “every dollar he owes.” Mr. Hochfelder’s plea agreement requires him to pay $9.5 million in restitution. Hochfelder’s sentencing is scheduled for Sept. 7.
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Source: http://www.nytimes.com/2010/05/22/nyregion/22hochfelder.html

Opportunity is knocking for smart investors

There are profits to be made for smart real estate investors who know how to find and finance commercial properties that are bank foreclosures, short sale prospects or are owned by other distressed sellers.

Shorten your learning curve and avoid costly mistakes with knowledge from seasoned investing pros. Take a look at these courses:

# Commercial Property Foreclosures The next real estate bubble starting to burst is commercial real estate. Learn how to buy commercial property short sales and pre-foreclosures for pennies on the dollar with 100% financing without good credit and without any real estate experiences or licenses needed.
#####

# Commercial Property Buildings Learn how to buy office, warehouse and retail buildings with no cash and no credit. Right now the most profitable units are retail stores, small office space and smaller industrial spaces like warehouses of 3,000 square feet and under.
#####

# Apartment Buildings Learn how to start making $24,000 per month (or more) in passive, cash flow, by investing in apartment buildings with no cash or credit within 90 days.
########
real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors

Technorati Tags: real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors

Philadelphians voted by an overwhelming margin last week to abolish the Board of Revision of Taxes, setting the stage for a major overhaul of the way real estate taxes are assessed and how appeals are heard in the city.

But experts in the local legal and business communities cautioned last week that elimination of the 156-year-old tax board does not guarantee that necessary changes will come easily.

A top Center City real estate lawyer said it was hard to think of a more challenging exercise than creating a fair system for assessing properties in Philadelphia, given the city’s history.

Stakes are high for commercial real estate investors

The stakes are high in the commercial real estate world, where some investors take their money elsewhere because they cannot understand the city’s byzantine tax system and doubt its fairness, said Robert Fahey, a broker for CB Richard Ellis Group Inc.

What’s more, property taxes are just one aspect of an onerous Philadelphia tax system that is forever stretched because too few workers and residents have to fulfill too many financial obligations.

Michael Sklaroff, real estate department chair at Ballard Spahr L.L.P., expressed optimism, despite his conviction that fixing the system is extremely difficult. “If there is a political will, this can be done effectively. Mayor Nutter seems to have the courage to set this right,” he said.

Others have doubts.

“It hasn’t changed in all the years that I have practiced. It can be done, but the politicians have to stay out of the mix,” said Marc Brookman, a partner at Duane Morris L.L.P. and a real estate lawyer here for 42 years.

It will take enormous effort and discipline to complete the years-long task of assessing properties based on estimated market values as opposed to the tax board’s vague and seemingly random method, lawyers said. They expect a significant shift in the tax burden among neighborhoods, potentially upsetting large blocks of voters, which politicians like to avoid.

“There is absolutely the political will to fix things,” said Doug Oliver, Nutter’s spokesman. “We acknowledge that actual value is the direction we want to go, but we are going to take the necessary time to get it right.”

Unless a legal challenge gets in the way, the BRT will go away Oct. 1. Before then, the mayor can set up a new Office of Property Assessment within the administration. An independent Board of Property Assessment Appeals is also to be established.

John Binswanger, chairman of Binswanger Corp., a Center City commercial real estate firm, said there was not much to talk about yet. “I think the concept is fine. I want to see the result,” he said.

A Pittsburgh professor who has studied property taxes nationwide was skeptical of putting the assessment operation in the executive branch. “This has all the makings of major mischief if you ask me,” said Robert P. Strauss, a professor of economics and public policy at Carnegie-Mellon University. “It’s just replacing one highly political organization with another.”

The structure was a compromise, Oliver said.

Even if property taxes are more equitably distributed across the city, the underlying problem of the city’s expenses outrunning revenue remains.

Health benefits and pension costs, for example, each more than doubled from fiscal 2000 to fiscal 2009 while city revenue increased only 35 percent, according to the mayor’s office. Meanwhile, the number of jobs here fell 7 percent, to 647,400 from 699,200. That means the average pension contribution per job soared to $680 from $257.

In the end, Sklaroff said, the city has to pursue three goals: more jobs, a stronger tax base, and more residents to share the burden. Fixing the property-tax system can play a role in meeting those goals, Sklaroff said, because “a transparent system will be more inviting to investment.”
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Source: http://www.philly.com/inquirer/business/20100523_This_Economy__Rough_road_lies_ahead_to_fix_Phila__tax_system.html#ixzz0ozWuuz6M
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Opportunity is knocking for smart investors

There are profits to be made for smart real estate investors who know how to find and finance commercial properties that are bank foreclosures, short sale prospects or are owned by other distressed sellers.

Shorten your learning curve and avoid costly mistakes with knowledge from seasoned investing pros. Take a look at these courses:

# Commercial Property Foreclosures The next real estate bubble starting to burst is commercial real estate. Learn how to buy commercial property short sales and pre-foreclosures for pennies on the dollar with 100% financing without good credit and without any real estate experiences or licenses needed.
#####

# Commercial Property Buildings Learn how to buy office, warehouse and retail buildings with no cash and no credit. Right now the most profitable units are retail stores, small office space and smaller industrial spaces like warehouses of 3,000 square feet and under.
#####

# Apartment Buildings Learn how to start making $24,000 per month (or more) in passive, cash flow, by investing in apartment buildings with no cash or credit within 90 days.
#####
real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors

Technorati Tags: real estate investing, commercial property foreclosure, property investments, buying rental property, rental property investment, property investors