REPOST: Baby boomers and real estate investing in this decade

According to this Huffington Post article by Be a Real Estate Millionaire author Dean Graziosi, baby boomers' decisions may have a big influence on the real estate market over the next decade. 

The 2000 Census gives us an estimate of 78+ million Baby Boomers, people born between 1946 and 1964, in the U.S. This group of people is entering their retirement years now and over the next decade. They're also the richest age group, both in real estate held and savings and investment accounts. Their lifestyle decisions going into retirement will influence the economy in a number of ways, and real estate will be right at the top of the list.

One thing we have in this country is a large group of "economists," and "market analysts." What's interesting about this group of real estate market-watchers is that there are two very different ways in which they predict Boomers will influence housing markets over the next decade. Let's take a look at those two opposites and see how each can change the way real estate investors approach their markets.

The "Golden Handcuffs" Scarcity Theory

This prediction of how the markets will be influenced by Boomers assumes that the overall real estate market will continue to improve and be boosted by a scarcity of supply for a number of years. Boomers in many areas are sitting on real estate worth a fortune, but they don't have a lot of cash; the "golden handcuffs" of real estate riches they can't afford to sell. If they sit on their homes, inventories available for buyers will be reduced and home prices will improve with this scarcity of supply.

The golden handcuffs will cause more of these owners to stay put; many may seek out second mortgages or reverse mortgages to improve their retirement with cash locked up in their homes. Many of these golden handcuff owners are in areas with very high-priced real estate like California, New York, and other areas in high demand. Others are all around the country in high-dollar real estate neighborhoods. There will be fewer homes available, higher prices will result, and markets will be happy.

What's the outlook for investors in these areas, particularly rental property investors? With few homes for sale and high prices, there will be an increased demand for rental homes. Unfortunately, there will be few for sale that will be suitable for cash flow investing. However, the sharp investor who wants to invest in these markets will look to the edges. Rents will be high, something we like. The tenants will be forced to move outward from the center and they'll pay higher rents the closer they can locate.

To read the about Dean Graziosi's The Dump-and-Move Theory, as well as the rest of the article, click here.

Peter Vekselman is a real estate coach who has helped his clients close countless deals over the course of his career. Follow this Facebook page for updates on the real estate market.

REPOST: Ex crims can apply for a real estate license

In Australia, some ex-convicts are given the chance to start a new life not by sending them in some government-sponsored livelihood projects, but by allowing them to apply for a real estate license and become bona fide brokers.

REIQ generic house sale
Image source: news.com.au


WE trust them with the keys to our homes but murder, robbery, fraud, rioting, bribery and forcible entry are a just a few of the crimes a person can commit and still become a real estate agent.


While plans are underway to introduce new legislation to regulate training within the industry, it has been revealed a person can still sell property in Queensland even after committing serious crimes.


People who have committed a crime with a maximum sentence of more than three years in jail can be automatically refused a real estate licence or salesperson certificate.


But offences like computer hacking, affray and forcible entry have small maximum sentences, meaning a person can be convicted of these crimes and apply for the licence within the week.


Even murderers, fraudsters and armed robbers can apply to become agents if they wait long enough. The automatic dismissal overlooks any offence, no matter how severe, if the person was convicted more than five years ago.


Anyone guilty of a range of other offences can apply for their licence not long after being convicted.


All agents and salespeople in the industry must undergo a criminal history check before they can sell real estate but the check only takes into account certain crimes and overlooks crimes with smaller sentences.



A person can still become a real estate agent in
Queensland even after committing serious crimes.
Image source: news.com.au


Real estate consumer advocate and host of Selling Houses Australia Andrew Winter called on the Office of Fair Trading needed to review its policies for the protection of the public.


"From the consumer point of view a licensed real estate agent should be a law-abiding citizen," he said.


"They should not be somebody who has ever been imprisoned for anything. Because what they're dealing with is big sums of money, even if they're handling it indirectly through a property, and they're working with trust accounts."


Mr Winter said the legislation needed to be changed for the protection of both consumers and people working in the industry.



"Queensland still has the most stupid property laws where agents are allowed to write contracts," he said.


"They're not lawyers, they're real estate agents and if you do a criminal history check it should be a proper one so that consumers are safe."


"It's also for the protect of real estate agents themselves and for the rookie and trainees to know to have licence you have been checked out thoroughly."


In the 2012-13 financial year the Office of Fair Trading received 1067 complaints about real state agents. One of the top reasons given for these complaints were allegations of failure to act honestly, fairly or professionally.


Office of Fair Trading Industry Licensing Unit executive manager Tamika Millmore said the office performed a thorough check on anyone applying to sell property.


"The criminal history check is done through Queensland Police," she said.


"We have a list of certain offences that Queensland Police then inform us about. We don't find out someone's full criminal history and if they've committed a crime that is not on our list."


Ms Millmore said there were extra safeguards after the automatic refusal system to protect consumers from serious criminals.


"We also have discretionary powers," she said.


"When we conduct the criminal history check we still consider the circumstances and nature of the crimes committed before we allow a person to obtain their licence.


"We also are aware of all breaches of the Property Agents and Motor Dealers act so we can be aware of other offences even if there is not a conviction recorded against a person."


Real Estate Institute of Queensland managing director and CEO Anton Kardash said the body had no problem with how criminal checks worked.


"The current requirements for police checks seem to be adequate however National Licensing seems to be weakening the current arrangements."


Crimes with a maximum sentence less than three years:

• Rioting
• Forcible Entry
• Affray
• Bribery
• Computer Hacking
• Threatening Violence
• Disclosure of Official Secrets
• Influencing Voting
• Observing or Recording in Breach of Privacy

Peter Vekselman is a real estate coach who has been in the business for more than a decade. Learn more about his professional background by visiting this website.

Renovations that add value to your property.

Making a house a home is the goal of every homeowner. Some spend a lifetime making improvements and installing upgrades, but in terms of resale value, which home renovations are actually worth in the investment?

Image Source: www.newintegratedsolutions.com

The kitchen and bathrooms should be on top of the list when considering home improvement. Kitchens are the common gathering place for families and home buyers usually give this room special attention. Consider upgrading appliances and countertops. If the kitchen is adjacent to a den, consider knocking down a wall. Similarly, bathrooms are also on the spotlight during open house viewings. You can never go wrong by replacing the toilet and sink with newer ones. Tubs, on the other hand, can be more expensive and some settle for a simple reglazing.

 

Image Source: www.newkitchens.ltd.uk

Upgrades for boosting the house’s energy efficiency are huge attractions among potential buyers. They want to hear that they will be cutting gas and electricity costs when they move to your house. In keeping with the bathroom and kitchen upgrades, you can choose low-flow water fixtures that save water. Consider triple-panning your windows because this keeps the heat inside and prevents outside elements and ravaging weather from seeping in. This can have a tremendous impact on the cost of maintaining airconditioning and heating systems.

Image Source: www.southwestexteriors.com

Home renovations are costly. While you should consider your personal tastes and needs, you also have to consider the return on investments on the upgrades.

Peter Vekselman is a Georgia-based real estate consultant whose market expertise aids buyers and sellers land the best real estate deals. More information and pictures on value-adding homes can be found on this page.

REPOST: Should you sell a house under the radar?

Should you sell a home outside of common listings of homes for sale? Bankrate.com’s Marcie Geffner discusses the pros and cons of pocket listings. This article can be accessed at Yahoo! Finance.

Pocket listings might be the hottest controversy in real estate today. That's because many home sellers are attracted to the perceived benefits of selling a house outside of the brokers' multiple-listing service, or MLS. But the practice has some significant downsides for sellers as well.

Traditionally, the term "pocket listing" referred to a situation in which a property seller and real estate broker signed a listing agreement that allowed the broker to offer the property for sale, but keep the information out of the MLS and, figuratively, keep the information in his or her pocket. Nowadays, the term is sometimes used more broadly to refer to properties that are offered for sale without a listing agreement or use of the MLS.

Privacy or price?

A pocket listing can be attractive to sellers because it potentially offers greater privacy, convenience and flexibility than an MLS listing, according to Alexander Clark, an agent at Zephyr Real Estate in San Francisco, and founder of PocketListings.net, a website that promotes pocket listings.

"Most of the people who go the pocket listing route do so because of privacy. That's why a lot of movie stars, wealthy people and high-profile people sell their property without sharing it on the multiple-listing service," Clark says.

A pocket listing also can allow sellers time to repair and stage their property, resolve personal concerns they may have about selling their home and even price-test the market before they commit to a sale, explains Wendy Furth, a Realtor and assistant manager at Rodeo Realty in Calabasas, Calif.

"One reason a seller might want to stay as a pocket is because they figure (the broker) can just fish for buyers. It's perceived as being no-muss, no-fuss, no for-sale sign, no open houses, just find a buyer," she says.

The main reason for not doing a pocket listing

The downside -- and it's a big one -- is that a pocket listing loses exposure to other real estate brokers, and oftentimes the public. MLS exposure can mean multiple offers, a bidding war, a higher price, more attractive terms or a buyer who's better positioned to close the deal.

"The more people who see the house, the higher the price will go," Furth says. "By having it be a pocket listing, no one will know anything about it. That's a great way to not have a huge audience for the property."

Commission savings

Still, sellers might be tempted by the lower commission brokers typically accept for a pocket listing. Rather than 5 percent or 6 percent of the sale price, the seller might pay something more like 4 percent. However, remember that commissions are always negotiable.

A lower commission for a pocket listing might seem like a considerable saving for the seller, but it's the broker who stands to reap more benefit, says Douglas R. Miller, an attorney and executive director of Consumer Advocates in American Real Estate, a nonprofit group in Navarre, Minn., that seeks to educate consumers about conflicts of interest in real estate.

That's because brokers typically split commissions between the seller's side and the buyer's side of the transaction. A pocket listing means the seller's broker is more likely to retain the full amount, rather than a portion. Sure, 4 percent is less than 5 percent or 6 percent, but it's also more than 2 percent or 3 percent.

Miller takes an especially dim view of pocket listings, which he describes as "self-serving," "self-dealing" and "one of the worst business practices in residential real estate." He says these deals don't work out financially for sellers because what's saved in a lower commission might well be lost -- and then some -- in a lower price.

Is anyone looking?

Miller disagrees with the notion, espoused by some brokers, that other marketing strategies can make up for keeping a listing out of the MLS and even nab a higher price.

"Social media? Exclusive website? Who cares, if no one is looking in those places to buy homes? They aren't," he says. "The first thing sellers should be demanding of their broker is a marketing plan that includes not only the MLS, but also the top buyer-frequented national websites."

Assess the broker's motives

The bottom line is that homeowners should be wary of any hard push to offer their home as a pocket listing, potentially giving one broker control over both sides of the transaction and a good shot at what's known in the real estate business as a "double end" or "double pop" commission.

"If someone is coming up to you to try to get a pocket listing, you have to ask, 'What are your intentions? Are you going to offer compensation, commission, to another agent if they bring a buyer? Are we going to sign a listing agreement?'" Clark says. "If they want to say, 'If I find you a buyer, will you pay me this amount and not sign anything?' Then watch out."

With decades of experience, Peter Vekselman recommends having a good mentor in order to flourish in the real estate industry. Visit this webpage to know more about the real estate investor's insights.

Real estate tips for entrepreneurs

Many factors can affect the success of a business. For this reason, looking into the forces that affect the company, and determining how they may affect the performance of the enterprise as a whole are necessary. An article at Entrepreneur.com lists down the things that any entrepreneur should examine in real estate, a commonly ignored factor that can actually heavily influence the probability of success even from the get-go.

Image source: lerablog.org

Location

Where the business is built determines the potential number of customers who will come to pay for the product or service. Before completing a real estate transaction, the buyer should know how many people pass by the street every day, as this also determines the number of potential customers.

Lease

Entrepreneurs are advised to sign a longer lease if they can afford it. While this takes a bigger chunk off the capital, it can save the owner money in the long run. This is because the land becomes immune to unstable market forces like inflation.

Rent

Entrepreneurs must also rent twice the space they need if they can afford it. This allows a lot of room for faster growth and expansion in the future.

Image source: cityfeet.com

Windows

When constructing the office or business building, it pays to invest in good ventilation and lighting. Not only can this save the business money, it can also improve the mood and performance of employees.

Purchase

For entrepreneurs who plan to build a store or restaurant, purchasing the land or building is better than renting it. This helps to avoid landlords who increase the rent depending on the success of one’s business.

Real estate is not a trivial matter. After all, success may be dictated largely by one’s initial choices.

Image source: reoptimizer.com

As a real estate consultant and entrepreneur, Peter Vekselman knows what’s best for businesses especially in matters related to location, building, and land. Follow this Twitter page for more updates on real estate and entrepreneurship.

REPOST: America's Most Beautiful Mansions For Sale

Do you imagine yourself living in a mansion? You can, as long as the price is right. So says this Forbes article which details information about American mansions that are currently for sale.


American opulence is still for sale. But it costs a pretty penny. Acquiring a finely-appointed home of extraordinary scale can run between $12.5 million and $100 million at the moment. For this, homeowners enjoy everything from fountain-studded courtyards to grand libraries and cavernous indoor pools.

Take, for example, The Peabody Estate (better known as “Solana”) in Santa Barbara, Calif. Listed for $57.5 million, the home built by clothing magnate Forrest Peabody is surrounded by nearly a dozen acres and includes almost 23,000 square feet of living space. There’s a private guesthouse on the property and better yet, the mansion has 360-degree views of both the mountains and the sea.

Not all of its views are natural, however. The home’s interior includes details such as 17th-century French oak paneling and museum-quality mosaic tiles. The wall sconces date to the 1700s, and hand-carved mahogany millwork as well as European forged bronze hardware gleam throughout. All this, and California sunshine as an added bonus.

Another fine example of mansion living is Hi’ilani, or “In the Arms of Heaven.” Located in Honolulu, Hawaii, the home was built for television producer, Al Malacini. According to Sachi Hawaii Pacific Century Properties, “1133 Ikena Circle is most fit to be called a present-day palace […] it’s beauty, splendor, and grandeur are marked by its perched location nestled among Ko’olau Mountains, overlooking Diamond Head and the Pacific.” All of this can be enjoyed from the home’s Upper Grand Terrace. The home features nearly 6,000 square feet of outdoor living space.

Hi’ilani was inspired by both 18th Century French architecture and Modern Mediterranean design. And it delivers perfection inside as well out. Lavish details, such the mansion’s French hand-embroidered draperies and its 9-½ foot Australian crystal chandelier, contribute to the prestige of the residence which is listed for $12.5 million.

For a more contemporary take on hyper-luxury real estate, there’s Arbor Hill in Fort Washington, Pa. The 70-acre estate includes a colossal 40,000-square-foot main house. From bathrooms to the tennis courts, every inch of Arbor Hill is extravagant. Designed by celebrated architect Rafael Vinoly, the home features floor-to-ceiling windows that look out to the Belgium block courtyard surrounding the main house. Its living room is two and a half stories high and includes five sets of French doors. Details such as limestone and oak flooring, carved marble bathtubs, and a private tower with panoramic views punctuate the beauty and meticulous design of this American palace.

In addition to the main house, the property includes two stone farmhouses, an outdoor tennis court, pool, and a 20,000 square foot recreation building.


Peter Vekselman is a real estate investor and entrepreneur.  He has closed more than a thousand property deals over the course of his career. Follow this Twitter page for more information about real estate.

The construction business and how it survived the recession

Peter Vekselman and Linda Alvarado are the type of people who would rather go against the flow instead of going traditional or jumping straight into being an employee after graduating from college. There is nothing wrong with being an employee, but these people understand that there is a better future awaiting those who take it the long way and work on it assuredly. Not so long ago, they've already seen the potential of the construction business to remain steady and flourishing amidst the foreboding economic quandaries of their time. And they were right.

Image source: buffingtonhomes.wordpress.com

Of course, not all construction firms may have found the word “flourishing” appropriate to the several difficulties they experienced during the recession, but it is fair enough to say that most of them remained “steady” in the midst of the economic downturns that hit America.

And what did they do? They just simply prepared.

Image source: crystalcoastblog.com

The construction business was not excluded from the upshots of recession, and as far as economic quandary is concerned, it is the industry that suffered the most at the time. But the real question is how industry players have managed to survive and, in fact, become the core of the most thriving commerce in the present.

Image source: bpcpa.com

Seasoned construction firm owners know that the industry they belong in would be the first one to suffer should there be any sort of economic quandary that would hit the country: When people lose money they will run out of trades and profession, and establishments and houses will no longer be relevant if that happens. On the other hand, they also know that when progress comes in, people would need new structures to house their new businesses.

Real estate investment coach Peter Vekselman has been involved in the contraction business for more than a decade. This website provides more details about his career.