Showing posts with label Real Estate Investor. Show all posts

Wednesday, January 11, 2012

Memphis Real Estate Firm Proves Success Possible in Slow Market

New paradigm in real estate investment industry grows investor portfolios while growing local economy

MEMPHIS, Tenn., Jan. 9, 2012 /PRNewswire via COMTEX/ -- Memphis Invest, a leader in the burgeoning turn-key real estate investment industry, announced today that it more than doubled its business last year with a 60-percent increase in home sales on behalf of its investors during 2011 compared to 2010.

The company also saw a 48-percent increase to its client base, and as a result of this growth, Memphis Invest has seen an increase in revenue of more than 90 percent year over year. While the housing market continues to struggle toward a full rebound, real estate firms like Memphis Invest are thriving by helping investors worldwide capitalize on the availability of low-cost homes combined with a growing demand for rental property.

Turn-key real estate companies such as Memphis Invest purchase, renovate and manage properties for investors who are interested in long-term revenue options, but also need a partner to operate and manage the properties on their behalf, particularly since many investor-owners do not live in the same city as their investment property. As faith in traditional investment options like the stock market wanes, this increasingly popular model for real estate investment, also referred to as passive real estate investing, has become an attractive alternative for those who have capital and want to own specific residential property but lack the time, experience or means to manage it. Memphis Invest's business model helps customers manage risk while preserving their capital.

"With nearly half of the Memphis population renting, Memphis has become a stable and lucrative market for real estate investors seeking to build their portfolios," said Chris Clothier, a partner with Memphis Invest. "Investors are looking for hard assets that provide safe, long-term opportunities in a time of economic uncertainty. Despite the recent real estate bust as part of the Great Recession, residential real estate remains a proven investment strategy."

The family-owned business not only grew its internal property rehabilitation and property management services staff by more than 30 percent last year, but its business model also enabled it to employ 47 other area companies that provide nearly 500 jobs to the region.

In November, Memphis Invest announced expansion into the Dallas market in response to growing investor demand and the attractive Texas market. The company plans to begin actively marketing and selling Dallas properties by the second quarter.

"The opportunity is there for us as a relatively young industry to fill a need in our national economy as more and more individuals look to rent and distressed and low-cost homes are available for purchase. Investors are looking for safe investments, and they are begging for great communication and customer service. We're simply connecting the dots to provide investors what they are looking for, and so far, it's a business model that has proven successful for us," said Clothier.

In 2011, Memphis Invest spearheaded the creation of a peer group for similar real estate investment companies, spanning from regions such as California, Florida and New York, that meet several times a year to define best practices for the green turn-key real estate industry. Clothier will lead the next meeting of the group, known as REI Edge Masterminds, in Jacksonville, Fla. this week from Jan. 12-13.

About Memphis InvestMemphis Invest provides turn-key real estate investment services to domestic and international clients looking to include residential real estate ownership in their investment portfolios. Founded in 2004, the company engages a professional network of portfolio managers, experienced contractors, appraisers and lenders to streamline the investment process for individuals looking to build their real estate investment portfolio without the burden of day-to-day property management. A privately held, family-owned business based in Memphis, Tenn., the company is led by two generations of employees committed to providing a personal level of customer service along with property identification and management solutions to their clients.

For more information about Memphis Invest, visit www.memphisinvest.com or call 1-877-773-9998.

SOURCE Memphis Invest

Group Boston Real Estate's Michael Carucci Brokers the Sale of 4 Marlborough Street for $4,405,000

GBRE Represents Both Buyer and Seller in This Transaction

BOSTON, Jan 10, 2012 (GlobeNewswire via COMTEX) -- Group Boston Real Estate (GBRE), Boston's premier real estate agency for luxury properties, residential and commercial sales, including investment properties, today announced that GBRE's Michael Carucci brokered the sale of 4 Marlborough Street in the Back Bay, for a purchase price $4,405,000.00

Michael Carucci worked with both the sellers - William Day Hicks and Anne Louise Hicks -- and the buyer, Marlborough Manor Realty Trust.

The 9,750 square foot property, located on a premier block in the Back Bay, features seven units and three parking spaces.

"We had this property listed and sold within 30 days to a well-qualified buyer," said Mr. Hicks. "Michael Carucci lived up to his impeccable reputation by handling this transaction in a seamless fashion from start to finish."

"It was a pleasure working with the Hicks family and Marlborough Manor Realty Trust, and we're all pleased with not only the outcome, but also the smooth process that led to the completion of the deal," said Michael Carucci of Group Boston Real Estate.

About Group Boston Real Estate:

Group Boston Real Estate is one of the most trusted names in real estate throughout the Greater Boston area, located at 53 Hereford Street for 27 years. More information on Group Boston Real Estate is available at: http://www.groupbostonrealestate.com/ , or call us @617-262-1900.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Group Boston Real Estate

CONTACT: Ally Forbes
        Group Boston Real Estate
        617-262-1900 ext. 101
        ally@groupbostonrealestate.com

December Real Estate Data Show Positive Signs

December 2011 statistics released by theNorthwest Multiple Listing Service offer positive signs for a gradual rebound of the housing market. Many factors have contributed to the positive outlook expressed by many industry leaders.

Even with the all-time low interest rates, buyers have been skeptical about venturing into the market. However, many areas are not only seeing an upsurge in sales, but also multiple offers in some price ranges. This is likely due to a mix of new laws that help homeowners delay or prevent foreclosure, new financing options, faster acceptance by many lenders on offers on short sales, hiring by companies such as Boeing, and shrinking inventory.

However, the overall sales price is down 11.8 percent and distressed properties still account for one third of the sales.

O.B. Jacobi, president of Windermere Real Estate, stated in an article of the Northwest Reporter that he believes the market has undergone a shift.

"Where we've been during the past year is a place of transition. It has been a slow recovery, but the housing market has finally turned a corner, albeit a soft one with some bumps along the way," he said.

While December statistics offer hope for a transition into a better market, we are still facing an uphill battle in a volatile economy. Only time will tell if the decrease in inventory is the result of sellers waiting until after the holidays to list their homes or if sellers are frustrated by the decrease in home values and deciding to wait. The volume of distressed properties must decrease to stop the downward flow of property values.

According to the Northwest Multiple Listing Service figures for King, Pierce and Snohomish Counties, there has been an overall 20 percent increase in pending sales. Last month's pending volume exceeded the number of new listings (4,604) for the second consecutive month. The last time such an imbalance occurred was November 2006.

Closed sales also outgained year-ago totals. December's completed transactions were up 7 percent from twelve months ago, rising from 4,430 closings to 4,741.

King County saw new listings for the month of December fall from 1,891 in 2010 to 1,552 in 2011. Total year new listings dropped 7,000 from 45,182 to 36,198. Pending sales were up 8 percent over the year. Closed sales were up 10 percent but prices fell 9 percent.

New construction starts in 2011 dipped 1,000 below 2010 numbers with an average listing price decreased 9.5 percent.

On the Eastside, inventory fell 24 percent. Pending sales are up 8 percent and closed sales are up 12 percent from last year’s figures. Market time decreased by 10 percent to 95 days. The median list price fell 4 percent but closed sale price dipped an additional 7 percent. Condominiums followed a close pattern.

This all bodes well for the housing market, but only a continuation of these results will bring certainty to the market. Statistics are released on a monthly schedule. In the coming months we can chart those statistics and hopefully see a consistent gradual improvement.

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Joan Probala is the managing broker for Issaquah Windermere and has 30 years of experience in real estate, construction and sales. She is president-elect (2012) of the Seattle King County Association of Realtors.

Real Estate Technology Innovator Austin Allison Named To Forbes 30 Under 30 and Inman News Top 100 Most Influential

Allison Joins Panel at Inman Connect to speak on converting leads to clients

CINCINNATI, Jan. 10, 2012 /PRNewswire via COMTEX/ -- After recently being named one of the top 100 most influential people in real estate by Inman News, DotLoop President and CEO Austin Allison was named to the Forbes inaugural 30 under 30 list of 2012. Coming off of this accomplished December, Allison has been asked to speak at the Inman Real Estate Connect Conference in New York City later this week where he will share his insight on how to convert leads into clients.

On Sunday, December 17th, Inman News released their annual report of the top 100 most influential people in real estate. The Inman 100 report is a list of the most influential real estate leaders and recognizes those who embody leadership, ingenuity, strength, conviction, power, persistence, perseverance and progress. The list includes the industry's brain trust, power brokers and deal makers and those outside the industry who impact the business of buying and selling homes. Allison was named to the technology category for leading DotLoop to become the fastest-growing software as a service company in the industry, acquiring international enterprise wide partnerships with real estate franchises and adoption by nearly 120,000 paying users and 2,000,000 nonpaying users .

Two days later, Forbes announced the inaugural list of 30 disrupters under 30, representing entrepreneurs in 12 verticals including Energy, Media, Technology, Finance and Real Estate that aren't waiting to reinvent the world. Allison joined the list with Eric Trump of The Trump Organization, Daniel Ek of Spotify, Stuart Anderson of Twitter, Kevin Systrom of Instagram, David Karp of Tumblr and Mark Zuckerberg of Facebook.

"To be a part of Forbes 30 Under 30 and Inman News Top 100 is an honor and testament to what we've accomplished. However any great leader knows that he or she is only as strong as the team's weakest link. Our concept fills a big gap in the marketplace and we have been fortunate to attract such an amazing group of 'Loopers.' This award is a result of our mutual success," said Allison.

The Inman Real Estate Connect Conference panel will be led by Gahlord Dewald, a columnist at Inman News and President of ThoughtFaucet. Aside from Allison, other panelists include leading innovators Grier Allen, President and CEO at BoomTown LLC, and Frederick Townes, Co-founder of Placester and CTO of Mashable.

Allison will dissect the art of converting leads to sales and the myth that more leads does not equal more sales. He will also discuss how to avoid the pitfalls associated with too much emphasis on lead generation and how to leverage the right solutions to close more business. "The topic of leads to clients is ideal in an industry driven by client referrals and consumer satisfaction," stated Allison.

Allison spoke at last year's Inman Real Estate Connect Conference in San Francisco on the topic of the "CRM-Marry-Go-Round."

The Inman Real Estate Connect Conference will be held from Wednesday, January 11 through Friday, January 13 in New York City. For more information about the conference, please visit http://realestateconnect.com/nyc12/ .

About DotLoop

Headquartered in Cincinnati, Ohio, DotLoop is driving a movement in the real estate industry by providing a transaction hub where people work together to get deals done. As the leading provider of collaborative negotiation services, DotLoop is available to service all real estate professionals throughout the United States and Canada. The innovative DotLoop platform is a collaborative, wholly web-based negotiation platform that lets users add, adjust, approve, and sign documents digitally - addressing the challenges of consumer satisfaction, efficiency, and overhead costs in today's real estate industry. This is a real estate movement that the press has called "revolutionomics." For more information, please visit www.dotloop.com .

SOURCE DotLoop

4 Best Real Estate Moves

(Shutterstock.com)

(MoneyWatch)

Ever since the housing market collapsed five years ago, buyers, sellers and investors have been climbing their way out of the rubble. Things have improved a little, but it's clear we're not there yet.

Housing market predictions for 2012

Real estate trends: College town real estate

Your 2012 winter home maintenance checklist

Even so, there are signs of hope. Existing home sales are up by a large margin compared with the close of 2010. And for those with the cash, credit, and determination, there has never been a better time to buy a home or apply for a mortgage or refinance.

Mortgage interest rates are at all-time lows, hovering at or under 4 percent for a 30-year fixed loan. Last Thursday, Freddie Mac reported that mortgage interest rates matched the all-time low.

With some careful planning, a little research and a lot of persistence, you can avoid housing market misery in 2012, and come out on top.

Here are four best real estate moves you'll want to make this year:

1. Surround yourself with experts

No matter your goal - a first home, a refinance, reverse mortgage or the purchase of an investment property - you will need a little help from qualified professionals who can help you navigate the rough real estate waters.

Having a good experience starts with hiring someone who has been around this block many times before. So find yourself a very experienced real estate agent who can list your property or help you find the right new home.

But you'll also need to secure the services of trusted experts who can help you seal the deal. Look for a great mortgage lender, real estate attorney (especially if you're buying a foreclosure or short sale or are selling in a short situation), home inspector and tax advisor (for real estate investors).

Putting together the right team can go a long way toward helping you make sound real estate decisions in the coming year.

2. Know your credit score

As I suggested above, even those with a healthy credit profile can find securing a loan challenging in 2012. The wild days of mortgage lending, where everyone with a pulse got a loan, are over. Lenders are extremely (and perhaps overly) cautious, and your credit score has become a more important tool than ever in deciding upon interest rates and terms.

Start by going online to AnnualCreditReport.com, which is the only site operated by the three credit reporting bureaus (Experian, Equifax, and TransUnion). There, you can get a free copy of your credit report from each of the three credit reporting agencies, as required under federal law. For an extra $9 or so, you can purchase a copy of your credit report.

Or, you can visit a number of websites that will provide a free or low-cost copy of your credit history and score. If you don't like what your credit history or score looks like, you can make the decision to simply put off buying or refinancing and instead work on fixing your credit.

The key thing is to know where you stand before you negotiate.

3. Manage your credit for the long haul

In today's mortgage market, a credit score of 780 or above is considered optimal. But you should be able to get a mortgage if you have at least a 720 credit score.

If you're not there yet, there are certainly a number of steps you can take. Obviously paying your bills on time and in full is a key part of the process, but you should also act now to correct any errors on your report. If you don't have any errors on your credit report, you'll want to work to pay down existing debt as quickly as possible and make sure you don't have too many open lines of credit. (For some suggestions on how to fix your credit history, check out some of my posts on theEquifax Finance Blog.

4. Not all loans are created equal

It may be tempting to sign on the dotted line of the first lender who grants an approval, but don't. Consider that in many cases, a mortgage is going to be a 15 or 30-year commitment, and make sure you're comfortable with the terms for the long haul.

I suggest you talk to at least four or five lenders before making your decision. In addition, vary the type of creditors you're researching: A major bank, a local lender, a credit union, a mortgage broker and online options. Each of these will offer a variety of different loan programs, at different price points.

In 2012, if you want to make the best real estate moves, you'll have to arm yourself with information. In order to negotiate and secure the best deal, it is important to know what the competition will offer.

Monday, January 9, 2012

Understanding credit ratings

When we approach a lending institution to borrow money, how does the lending institution know whether we are trustworthy or not? We might be able to assure them that we are… but can they take our word for it?

The lending institution is in the business of making money by lending money. They lend money to people who they think will pay it back and they charge a bit of interest which is their way of making money on the risk they've taken. But again, how do they know who will pay the money back?

That's where credit ratings come in. A credit rating – or "a credit score" – is derived from a big pile of information collected about us. There are three main credit scoring companies out there. They are private companies who get information about us from various sources. These credit reporting agencies use this information to give us a score. Every person has their own score.

Then, when we want to borrow money, we ask a lending institution for the money and they go to the credit reporting agency and find out what our score is. If we have a good score, the lender will give us money. If we have a bad score, the lender will either give us money but charge us a higher interest rate or they simply won't give us money at all.

So, it makes sense that we should work hard to improve our score. But how do we do that? Here are some tips:

Pay all bills in full. Don't leave any money outstanding on a bill. Pay it in full. Credit reporting agencies, and the lending institutions that use the scores, are going to want to know this information. After all, the lenders are considering lending us money and don’t you think they want to know if you pay your bills in full???
Pay all your bills on time. Don't be late. Don't wait until the last moment. Pay them on time. Again, lenders who are about to lend you money want to know that you are a conscientious borrower who happily meets your obligations.
Make sure you HAVE a credit history. A good score doesn't just occur because you don't own anybody anything. No. People get a good score because they've owed people money and they pay it back. Someone who doesn’t have any credit score at all isn't going to get much money loaned to them.
Watch your available credit. Available credit is how much money you CAN borrow. For example, if you have a maximum of $10,000 credit limit on your credit card, your available credit is $10,000. Lenders want to know this because they want to find the balance between what you earn and what your available credit is, If you have lots of available credit but a low income, they might be reluctant to lend you money. Some of the might be thinking: "If they go on a spending spree, they'll never be able to pay it all back."

Getting good credit is a strategic, time-consuming effort but it pays off if you want to borrow money.

Real estate investors need cash

There's a challenge in the real estate investment industry. There are many opportunities for real estate investors to buy inexpensive properties and fix them up and exit profitably… but they need something vital to make it happen. They need cash.

Real estate investing is a capital-intensive business because it requires tens of thousands of dollars up front in order to get started. You need to put some money down on the property, you need to fund repairs, you have carrying costs. Once you've covered all of those, you can sell the property (or rent it) and make a lot of money but it needs to have the cash up-front first.

Many brand new real estate investors make the mistake of using their own money to fund the deal. They use credit cards and they borrow against their mortgage. Unfortunately, those tactics have limitations:

Credit cards have high interest rates and if a deal goes bad (and sometimes they do), the real estate investor may have a high amount of money to pay down on his or her credit card with exorbitant interest to pay, too. This can damage credit ratings!
Borrowing against the mortgage is another way that real estate investors pay for their deals. Although the interest rate is lower, there is still substantial personal risk should the deal ever go south. The borrower could end up with their home repossessed.

Credit rating worries, high interest rates, and even the threat of eviction are all challenging problems that face the real estate investor using their own money.

But there are other options. Real estate investors need to apply the principle of "OPM" – "other peoples' money" – in order to invest successfully. When they do that, they put other people's money to work for them and they can get better rates of interest and they reduce their personal risk.

There are several ways to get access to other people's money:

The real estate investor can contact his or her family or friends and ask them to invest. Sometimes this is a good idea, especially if the real estate investor has a successful track record and the know people with money. However, this can be risky because they could lose their friends or family should a deal ever bust.
The real estate investor can go to a lender – like a lending institution. A lending institution might lend them money or they might not, depending on the investor's credit rating and how much risk the lending institution is willing to take on.
The real estate investor can find a group of investors – both individuals and corporations – who are willing to invest. This takes more leg work on the investor's part but it can release a great deal of money to the real estate investor to invest. And there are many investors out there!

Real Estate Blog