Navy Fellas Realty Group

Real Estate, Residential sales and purchase

The Benefits Of Developing A Multi-Use Property

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The Benefits Of Developing A Multi-Use PropertyRenovations that create a multi-use property or the development of a new multi-use project can be a very attractive investment especially in urban areas that are undergoing redevelopment. The concept of multi-use is to make the most of the site that is revitalized or developed.

Multi-Use Projects

Typical multi-use projects have a mixture of retail space, restaurants, offices, and/or living spaces. They may include parking areas. Large multi-use projects can also become destination locations that are core improvements, which create a momentum for the gentrification of an entire area. Waterfronts, boardwalks, and walking promenades are successful as multi-use projects in many cities.

The advantages for investors in these projects include the ability to design the use of the space to maximize the return on investment (ROI). Depending on the area for the project’s construction, there may also be tax advantages.

Tax Advantages

Under the new tax laws, Opportunity Zones all across America have been created to stimulate redevelopment in areas that are distressed. The federal tax advantages include either delaying capital gain taxes or avoiding them altogether if investors hold the investments for more than ten years.

It is also possible to sell a project in an Opportunity Zone for a profit and then reinvest the proceeds under a tax exchange transaction into another investment in an Opportunity Zone and avoid paying the capital gains. Check with a competent real estate and tax attorney to learn how to set up an Opportunity Zone Fund to maximize the tax advantages.

Additionally, the financial basis used for calculating any profits on the second transaction is raised, thereby locking in the tax savings on the profits from the first transaction. This is a very effective strategy for build-to-suit developers who organize a multi-use development project in an Opportunity Zone with the intent to sell it.

State, County, And Municipal Support

Depending on the location, there may be state, county, and/or municipal support in terms of tax abatements and contribution of the land and funds for the development of a multi-use project.

Lack Of Basic Services

Another key consideration is that many Opportunity Zones lack sufficient basic services. Some neighborhoods do not even have a grocery store. A multi-use development, in a distressed neighborhood, which offers services and stores for these basic needs, is likely to experience an immediate consumer demand for the offerings.

Loans And Investment Funds For Multi-Use Projects

Lenders are more attracted to multi-use projects because of the possibility of higher average rents per square foot that will cover the monthly mortgage payments. Multi-use projects can be successfully funded by crowd-sourcing techniques as well.

Opportunities For Real Estate Agents And Brokers

REALTORS® have commission-earnings potential in the sale/acquisition of the properties for a multi-use development, leasing out the properties when developed, and selling a project upon construction completion or after being leased out.

Conclusion

The advantages of multi-use approaches as a development project are significant. There is plenty of support available in many parts of the country for these projects. REALTORS® benefit from many opportunities for commissions on each project as the development begins, the project is leased out, and then potentially sold.

Be sure to partner with a trusted real estate professional if you are interested in purchasing and developing a multi-use property.

Loan Servicing Companies

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Loan Servicing CompaniesWhat happens when you suddenly get a notice to pay your mortgage to a company you may have never heard of? How do you determine if this is a legitimate request or a scam?

A borrower may get a written notice or an email that their mortgage sold to another entity or that a new loan servicing company will now be collecting the mortgage payments. The borrower needs to exercise extreme caution before just sending in a payment to the new company. It is prudent to double check to see if the communication is legitimate because many people get scammed by this type of notice.

Borrowers must receive a letter in the mail from the original lender notifying them of the change before getting any communication from a new company. If there was not a letter from the original lender, it is probably a scam.

How To Verify A Legitimate Request With The Original Lender

It is important to be 100% certain that communications are with the lender. DO NOT respond to any notice received by email by clicking on any link in the email, even if the email looks legitimate.

Fraudsters on the Internet use a technique called “phishing” to trick people into thinking they are getting a request from a legitimate company when the email comes from a criminal. These emails are very convincing. They look exactly like the real company; however, they are fake.

Borrowers who want to communicate with their lender online, should type in their lender’s website address and make contact through the company’s official website. 

Better yet, call the customer service number listed on the company’s official website and talk directly to a customer service person to verify that the request is legitimate. They will ask you for identification information and then be able to tell you your loan status.

What Is Loan Servicing? Can A Lender Sell My Loan?

Companies may choose to have the collection of the loan payment done by a third-party vendor. Usually, in any loan, there is a provision that allows the lender to sell it to another party or to change loan servicing companies. These legal rights are normally in the part of the loan document called the “Mortgage Servicing Disclosure.”

This legal right is usually held only by the lender and the borrower has no option but to comply with a legitimate request. Since almost all lenders sell off their loans to other companies or investors, so that they can get more money to loan out, the chance of a new mortgage loan selling is extremely high.

Troubles With Loan Servicing

Many make a smooth transition from one loan servicing provider to a new one by simply following the instructions. Others have troubles. Besides actual fraud by fake companies, there may be problems with real companies if the information in the records is not accurate. The date of a loan transfer may cause an overpayment or a late payment.

Any time there is confusion with regard to a mortgage loan servicing transfer, it is best to be proactive and stay in touch with the original lender for guidance in connecting with the new loan servicer.

Conclusion

Lenders sell their loans all the time. Loan servicing companies change frequently as well. These can be a simple legitimate transfer of the business process from one company to another. However, this is an area that is ripe for scammers to trick people and for bad companies to take advantage of their customers through loan servicing fraud techniques. Be aware of this problem and take care to avoid any negative consequences of loan servicing fraud.

Remember that two of your best partnerships in real estate will be with your licensed real estate agent and your trusted home mortgage professional. Be sure to rely on them if you have questions or concerns about your property.

Want to Make A Richer Life? Take Time To Make Time

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Want to Make A Richer Life? Take Time To Make TimeMany who are financially sound got that way by being skilled at accumulating wealth. The question is, did they also accumulate quality of life? Working all the time to build wealth, while at the same time lacking happy experiences with those who are important, is not creating a rich life. Here are some ideas to promote both a healthy and wealthy lifestyle.

Time Budget

For those who already do a decent job at managing their finances by using a budget, congratulations for doing half of the planning well. In order to have a fully-satisfying life, the other budget that is needed is a time management budget.

Allocate time on a weekly basis to all the other things that are important, which, in addition to money-making efforts, may include:

  • Personal Growth and Development: Examples in this category include daily meditation, yoga practice, and self-help classes.
  • Quality Family Time and Time with Pets: This category is less about the things to do and more about who does them together. Take time to sit with kids and play with them. Walk the dog or use a laser light on the wall to play with the cat.
  • Community Service: Make an effort to spend at least one hour each week doing some community service. This is a “pay-it-forward” way to keep everything in perspective and develop an attitude of gratitude.
  • Stress Relief: Find a way to release anger and frustration in a healthier way, such as going to a gym and working out with a punching bag.

Make More Time

Time is actually more precious than money. The best practice strategy is looking for the possibilities to create more passive income that requires money investment to produce a positive result but little or no time to make it happen. Creating passive-income streams by investing in real estate is a way to achieve wealth, while also creating free time.

Delegate And Outsource

Make a list of the little annoying things that take the most time. Find a way to delegate some of those tasks to others. Consider using the help of freelancers to outsource things that are time-consuming and can be done more efficiently by others.

Let A REALTOR® Do The Work

If there is some investment capital available to work with, find a real estate agent that becomes an integral part of the long-term business strategy. Make an investment plan together and let your agent find the properties that qualify for the strategy. Be happy paying the agent commission for a property acquisition that meets the investment criteria.

Success Creates More Success

Rewarding others who bring valuable deals that create passive income usually improves the results. If possible, start young, be patient, and, step-by-step, build up a valuable real estate portfolio. The life goal is to eventually create enough passive income, which requires so little time that most of the time can be spent playing with pets along with the grandkids. That is the meaning of true wealth.

How to Become A Billionaire Land Trader

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How to Become A Billionaire Land TraderTrading land like a billionaire relies on three simple premises. The first one is to acquire the land for cheap. The second one is to never intend to sell it. The third one is, if you trade it, trade up.

Howard Hughes

Billionaires that start with an inheritance have an advantage. Howard Hughes was born into wealth. His father invented an oil drill that penetrated difficult, hard rock, which made Howard Hughes one of the richest men in the world from his inheritance.

Hughes visited Las Vegas during WWII for the first time. Then, in the 1950s, he traded some parcels of desert land that he owned in Northern Nevada for 40 square miles (26,500 acres) of federal land. This property, managed by the US Bureau of Land Management, was in the northwest of Las Vegas.

Hughes died on April 5, 1976. Well after his death, this land would later become the master-planned community of Summerlin. The first family moved into Summerlin during 1991.

Vacant lots in Summerlin now sell for an average of $2 million per acre. This makes the land Hughes originally acquired by a trade of land worth a few million, equal to about $53 billion today.

Billionaire Lessons

Howard Hughes was not exactly clever. He was just greedy and stubborn. He decided to make Las Vegas his home after he came for a party in 1966. He stayed at the Desert Inn in the penthouse. After ten days, when his reservation was over, the manager asked him to leave. Instead, stubborn Hughes bought the hotel.

Next, Hughes went on a buying spree. He bought three casinos. He acquired all the vacant lots around the Desert Inn. He purchased all the vacant land on both sides of the street that became known as the Las Vegas strip. He bought the North Las Vegas airport and the land around the McCarron International Airport, which is right off the strip. Hughes’ appetite for buying things was insatiable.

The lesson learned is to buy and hold all the key land that is available. Be patient. It took 40 years for the land value in Summerlin to really take off in terms of value. Hughes did not live to see this but maybe he is laughing from his grave. One thing is certain, the desert land that, long ago, nobody but Hughes wanted became worth a fortune.

Investing In Raw Land

Investing in raw land that becomes valuable depends on just a few considerations, which include:

  • Location: Select land that is in the path of future growth.
  • Hold: Be prepared to own the land for a very long time.
  • Stimulate Development: Develop the area or encourage others to do so.

Summary

Land traders achieve success by being extremely patient. They are able to imagine the future growth of an area ahead of others. Land trading may create long-term opportunities because of the continual expansion of the population. This happens frequently around metropolitan areas in many parts of America. 

If buying land appeals to you, be sure to schedule an appointment with your trusted real estate professional.

I Can’t Believe It’s Not Grass!

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I Can't Believe It's Not Grass!For those who have not taken a look at the innovative technology that is now used to make artificial grass, they will be surprised at how realistic some of the newest products look when compared to living grass. Installing artificial grass, which is high quality, does not come cheap.

Prices range from $8 to $14 per square foot. However, this investment may pay off well because of improved resale value, low monthly water bills, and other benefits. The best artificial grass can last up to 25 years with little to no maintenance.

Here is a comparison of the advantages and disadvantages of the most innovative artificial turf to help homeowners and business owners decide if these new products are suitable for their properties.

Disadvantages

Besides the investment cost, here are some other disadvantages.

Hot To The Touch

Some artificial grass products do no dissipate heat very well. In areas where there is a lot of direct sunlight this problem can make artificial grass too hot to walk on barefoot.

Nevertheless, there are advanced designs of artificial turf, which have perforations that allow water to easily run through. These can be quickly cooled down by simply spraying the artificial turf with a light water mist spray.

Homeowners Association Rules

The rules of the homeowners association (HOA) may prohibit the use of artificial turf. Check the HOA rules before installing artificial grass. There may be a need for an exception to the rules.

High-quality artificial grass looks as nice, if not better, than real grass. Low-quality artificial turf looks like cheap, green, furry plastic. Make sure the HOA sees a sample of the artificial grass product for the project for their more accurate understanding and consideration.

Advantages

There are many advantages of using high-quality artificial grass.

No Water And Low Maintenance

In drought-stricken areas, water for irrigation may not be available at all, has use restrictions, and/or is extremely costly. Artificial grass does not need a huge amount of water that real grass needs to survive. It is very low maintenance.

No mowing or lawn care is needed to keep it looking perfect. It is washable, which makes it easy to remove dirt, dust, and pet litter. It is durable and tough.

Curb Appeal

High-quality artificial grass makes a home stand out. When all the neighbor’s homes are dull with dead, brown, real grass or another bland-colored ground cover, a vibrant green artificial lawn really looks spectacular in comparison.

Pet-Friendly

Pets like quality artificial turf. It is easy to clean. It should be able to withstand plenty of pet activity without showing ugly wear and tear. Depending on the installation, pets are discouraged from digging up the lawn.

If a portion does get damaged, it is fairly easy to replace a damaged section.

Conclusion

Artificial grass is increasing in popularity. In most cases, the advantages far outweigh the disadvantages. Even for properties, which have the option of maintaining a real-grass yard, artificial grass is something worth considering.

For tips on home improvement projects that can improve your resale value and attract buyers, be sure to consult with your trusted real estate professional.

5 Ways To Find Properties For Sale That Are Not Listed Yet

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5 Ways To Find Properties For Sale That Are Not Listed YetReal estate agents, who are successful, know that getting listings is the life energy of their business. It is boring to sit around waiting for a new client to call. It is expensive to spend extraordinary amounts of money on general advertising to get listings. Clever real estate people learn how to find properties for sale before they are listed.

Value Of Unlisted Properties

Real estate agents and investors have a competitive advantage when they find properties for sale that are not listed. These off-market properties may be available at a better price. There may have little or no other competition from other potential buyers making an offer. Real estate agents can motivate buyers to move quickly to close a deal on an unlisted property before it goes on the market.

Finding Off-Market Properties

Here are five ways to find properties before they are listed:

1. Check Tax Records

Sometimes it is as simple as looking up the current owner in the tax records, making a contact, and giving an offer. That direct approach may work well as long as enough contacts are made to improve the odds of finding a motivated seller.

2. Maintain Contact With Past Buyers

Real estate agents should always stay in contact with past buyers of a property that they sold. On the anniversary of the sale date, send a nice postcard with a handwritten note that says something like “I remembered this was the date you bought your home (or building). If you ever want to sell it, give me a call.”

3. Networking

Another technique is in-person networking with people. Join professional associations, mingle with people, and learn what neighborhood they live in. Tell them someone is thinking of moving there and ask them if they might be considering selling their home or if they know someone who is.

4. Friendly Neighborhood Scouting

Become known in a neighborhood as a buyer. When an investor likes a neighborhood, a terrific strategy is to wander around, knock on doors, and hand out business cards.

People hate someone knocking on the door who is trying to sell them something. However, they usually have a very positive reaction when someone wants to buy the home. There is no need to be shy. Walk around a neighborhood, get to know it better, and the people who live there.

5. Title Companies And Real Estate Departments Of Banks

Make friends with the staff at title companies. Get to know the people working at banks in the real estate department that handles the short sales and foreclosures. These two groups are very strong sources for off-market deals.

The staff of title companies knows when a sale fails at the last moment due to loan funding issues. Bank staff knows when new foreclosures come in before they list for resale. By moving fast, an investor takes advantage of the short gaps between the time these properties are available for sale and when they get listed.

Summary

Learning how to find off-market properties creates many benefits. Investment opportunities expand for real estate investors and real estate agents create more listings for themselves with these proactive strategies. Think of this as a treasure hunt and it actually can be a lot of fun.

How Often Should Your Real Estate Agent Contact You?

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How Often Should Your Real Estate Agent Contact YouIf this is your first time working with a real estate agent, you may be wondering how often you’ll be in contact with your real estate agent. Obviously, you want to be sure they’re still working for you even when you don’t hear from them. So how often should your real estate agent contact you, and when?

When Your Agent Will Likely Contact You

Expect a call from your agent when the following situations occur:

  • Your agent wants permission to have an open house at your home
  • Your agent is giving you feedback about the open house
  • A buyer wants to view your home 
  • A buyer wants to come back and see it again 
  • An offer has been made on your home 
  • Your counteroffer has been approved/rejected
  • A prospective buyer has made an offer on a different home
  • A home inspection/photographer’s/home staging appointment is pending
  • A change is needed in your listing (raise/lower price, etc.)
  • Other pertinent information becomes available

When Your Agent Might Not Call You

  • The buyers who viewed your home have not made an offer or expressed interest
  • No one has called about viewing your home
  • No action is pending

Is No News Good News?

You might go several days or even weeks without hearing from your real estate agent. No news or contact from your real estate agent isn’t necessarily good news or bad news. It’s just indicative that there’s been no activity on your home sale.

You can certainly reach out to your real estate agent, but that won’t change the fact that they have no news for you. If too much time passes with no activity, your agent will certainly contact you to make a new plan about your home listing. 

There’s really no set schedule for how often a real estate agent should contact you except that they will always keep you abreast of pertinent information to do with selling your home. Remember that your agent is working for you even when they go “radio silent.”

Your agent’s primary work before the sale is behind the scenes; attending other open houses and networking with other agents and brokers to spread the word about your home for sale. Be patient and know that the wheels are turning, even if they aren’t squeaky!

 

 

Can I Sell A House That Still Needs Repairs?

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Can I Sell A House That Still Needs RepairsWhen you started thinking about putting your house up for sale, you probably made a list of repairs that need to be done ahead of time. If that list was long, you might be at a point where you’re asking if it’s all worth it. Will prospective buyers really notice the little things? And even if they do, will that affect how much you’re able to get for your home?

You Can Sell An Imperfect House

Your house doesn’t need to be perfect in order to sell it. Many older homes have some issues like outdated kitchens and bathrooms or wall-to-wall carpeting that needs to be replaced or gotten rid of.

But be aware that a house in need of repair or is different than a house that needs updating. Outstanding repairs are a red flag to buyers that you haven’t maintained the home as you should have over the years. Buyers may suspect that your home needs even more repairs than the obvious issues. So first off, you might have more buyers walk away from a house in need of repair and second, you will probably get less money for your home. 

Outstanding Repairs Give Buyers Leverage

When you try to sell a home that’s in need of repairs, you give buyers leverage to get a lower price out of you. For instance, if your house needs a new furnace, the buyers might say, “Well, we’ll make an offer but it’s lower by this amount because we know we’ll have to get a new HVAC system as soon as we move in”.

That amount for the HVAC system will usually be more than what you could have paid for a new furnace before listing your home. You can almost always sell your house for more by taking care of repairs first.

One thing that real estate agents advise is to get an independent home inspection report before you sell. This will give you an official list of all the repairs that need to be done. Then you can pick and choose among which repairs you should take care of.

This also helps to avoid unpleasant surprises later on. Even though finishing repairs can be costly and time-consuming, many home sellers find that it’s worth it to do as much as possible before listing. The final purchase price often ends up reimbursing you for your expenses, if not for your time.

Be sure to consult with your trusted real estate professional to help you prioritize home improvement projects prior to listing.

Inexpensive Curb Appeal Tips That Work

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Inexpensive Curb Appeal Tips That WorkNo doubt you’ve been told that curb appeal will help sell your home. But if money is short you’ll need to do some curb appeal on a budget tricks.

Following are some inexpensive curb appeal tips that really work.

Fresh Coat Of Paint

A fresh coat of paint adds curb appeal without busting the budget. With a gallon of paint you can freshen up the window ledges, shutters, front door and the garage door. Add a fresh coat of paint to decks and railings, and street lampposts, as well. 

Solar Lighting

You can find inexpensive solar lighting stakes at discount stores around the country. Add these to the edges of the driveway, along the front pathway and around front hedges for nighttime curb appeal.

Metallic Paint

If you can’t afford brand new hardware for your front door, consider investing in a small tub of metallic paint. Refinish the doorknob, door knocker and the metal porch light fixtures. 

Annuals

Landscaping can be pricey, but with a couple dozen inexpensive blooming annuals you can transform your front walkway. Choose the most colorful annuals you can find at your local discount store. Plant right alongside the path leading to your front door. Fill in empty spaces in between plants with colored mulch. 

Wreath

Simply hanging an attractive wreath on your front door adds a tremendous amount of curb appeal that can be seen all the way from the road. To avoid marring the wood, use a wreath hanger that installs over the top rim of the door. 

New House Numbers

Pick up a set of brand new house numbers from your local hardware store. Hang them front and center next to your mailbox on your porch, on your mailbox post or over your garage door.

Refreshed Mailbox

Mailboxes get ignored so many times. It’s a shame because it’s easy to add curb appeal with an inexpensive magnetic mailbox cover. If you have a different kind of mailbox, consider just giving it a fresh coat of spray paint. 

Bird House

Another inexpensive way to add curb appeal is with a decorative bird house or similar lawn ornament next to your front porch. These are on long stakes that you simply push into the ground. Tick one into your hedges for a charming look.

You can complete these inexpensive curb appeal tips with a minimum of time and money. Yet, they’ll have a similar impact as if you spent hundreds of dollars. 

Be sure to contact your trusted real estate professional for more tips and tricks on how to ramp up curb appeal that will generate the most interest in your property.

Redevelopment Opportunities Abound

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Redevelopment Opportunities AboundHouses for a dollar. Millions (perhaps billions) in tax incentives. Reclaiming contaminated land. Partnering with Walmart to build town centers. What do all of these things have in common? They are examples of exciting redevelopment opportunities in different parts of America.

HUD Dollar Homes

The U.S. Department of Housing and Urban Development (HUD) offers homes for $1. Local governments may purchase them if they listed for sale without finding a buyer for six months. HUD acquired these homes through foreclosures.

The local governments purchase the homes for $1 so that they can fix them up and then re-sell them to low- to moderate-income families as part of a neighborhood revitalization program.

For investors and home buyers, there are also many bargain-priced HUD homes for sale, which need rehabilitation. First-responders and teachers get a 50% discount. Non-profits get a 30% discount.

Tax Incentives

Tax incentives attract investments by businesses in economically-disadvantaged areas. Federal, state, and local programs encourage redevelopment in many areas. Tax abatements come from the state, county, and the local community.

In 2018, the U.S. Treasury Department created Opportunity Zones in many states to give preferential tax treatment for investments made in these zones. Investors in these zones can defer federal income tax on capital gains. Under the new tax code, investments in Opportunity Zones held for 10 years have zero capital gains tax.

Super Fund Site Reuse

The Environmental Protection Agency (EPA) has a Superfund Redevelopment Initiative (SRI) to clean up toxic sites and reclaim contaminated land. There are now quite a few Superfund sites that went through the cleanup process and have EPA approval for reuse. Some successful projects under the SRI program include large solar energy collection arrays built on reclaimed land.

Walmart Parking Lots To Become Town Centers

Walmart plans to partner with developers to build Walmart Town Centers on underutilized acreage that surrounds some of its Walmart Super Centers.

Walmart invites small businesses and local communities to work with them on these redevelopment projects. Some plans include dog parks, day care centers, health clinics, farmer’s markets, basketball courts, and green spaces for picnics.

Sounds a bit like what downtown Main Street used to offer before Walmart came to town. Doesn’t it? Now, with these new redevelopment plans, the community space of a town center is coming back to some American towns.

Conclusion

Opportunities in redevelopment received support on a national level by the JOBS Act and the recent changes in the tax code. There are many redevelopment success stories happening in places where before everyone only saw problems and now real estate investors and developers find opportunities.

Whether you are in the market for a single family residence or a commercial investment, be sure to consult with your trusted real estate professional.