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Vscreen VMS is now a one-stop-shop for real estate video creation

Inmannews - Thu, 08/09/2018 - 2:00am
Vscreen, a real estate video creation company, announced this week it has launched a comprehensive overhaul of its platform, now called VScreen VMS.
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5 ways to calm your sellers’ nerves when showings slow down

Inmannews - Thu, 08/09/2018 - 2:00am
One of the toughest parts of the job can be keeping your sellers from stressing during the hectic process of listing, showing and selling their home. Here are five strategies to help keep your sellers' nerves calm when showings slow down. 
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Engel & Völkers parts with real estate advisor after DUI arrest, racially charged comments

Inmannews - Wed, 08/08/2018 - 4:34pm
The woman told officers that she shouldn't get arrested for a DUI because she's a "clean, thoroughbred, white girl."
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WATCH: Everything you need to know about rental property management

Inmannews - Wed, 08/08/2018 - 4:06pm
What changes are happening in the rental market and what are rental management startups doing to change the landscape for investors and renters? Watch the pros tackle these questions at Inman Connect San Francisco.
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WATCH: Everything you’ve been wondering about lead management tech

Inmannews - Wed, 08/08/2018 - 2:23pm
Leads, leads, leads. It seems every agent is after them and every other tech company is selling them. But how are they qualifying the leads? And how are these companies getting funded? Watch this ICSF session for answers.
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America’s first Spanish language multiple listing service is here

Inmannews - Wed, 08/08/2018 - 2:14pm
CoreLogic, the largest MLS system vendor nationwide, and My Florida Regional MLS, one of the largest MLSs in the country with 57,000 members, will soon debut the first Spanish version of Matrix, CoreLogic's most popular MLS system, in the U.S.
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Compass’ head of communications departs

Inmannews - Wed, 08/08/2018 - 12:54pm
Compass' head of communications Julie Binder is leaving the company. She told Inman the decision was mutual and a truly amicable parting of ways.
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ShowPal is trying to improve for-sale-by-owner model with tech

Inmannews - Wed, 08/08/2018 - 12:37pm
Iowa-based ShowPal is trying to make for-sale-by-owner deals more successful and more appealing to a broader segment of homeowners.
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Governments Target Rental Application Fees

American Apartment Owners Association - Wed, 08/08/2018 - 11:44am

If you own rental property you will want to listen to this one.  In a recent episode of the Rental Property Owner & Real Estate Investor Podcast, Brian Hamrick discusses rental application fees with RPOA’s Executive Director Clay Powell about recent moves by the Grand Rapids, Michigan City Council to institute a rental application fee ordinance.  This is an issue that has ramifications nationwide and affects landlords, property managers as well as the people they’re trying to serve. It is about property rights and could actually inhibit the ability to provide affordable & safe housing to those that need it most.

“As tenants find it increasingly difficult to locate and afford housing, those communities and their elected representatives are pointing the finger of blame at landlords, investors and property management companies, and looking for ways to legislate our behavior in order to solve this problem.”

 

Source: realestateinvestingtoday.com

The post Governments Target Rental Application Fees appeared first on AAOA.

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Freddie Mac to lower financing costs for landlords who cap rent rises

American Apartment Owners Association - Wed, 08/08/2018 - 11:29am

Freddie Mac, the country’s largest backer of apartment loans, is rolling out a new program that will offer lower-cost financing to owners who agree to cap rent increases for the life of their loans.

The initiative acts similar to rent control—which has been gaining traction in many parts of the country—by keeping units in private hands and controlling the rate of rent increases. But it comes with less political baggage because it is voluntary.

“Maybe there’s a way we can help change incentives,” said David Brickman, an executive vice president at Freddie Mac FMCC, +0.32%   and head of its multifamily division. “We can provide an economic basis for private, profit-oriented developers to pursue a strategy where they didn’t raise rents by quite as much.”

The program, which is set to be announced Tuesday and begin immediately, will be available all over the country. Brickman said he hopes hundreds of properties will take advantage of it.

The initiative comes at a potentially appealing time for real-estate investors who are facing a slowing rental market. Freddie Mac will provide mezzanine debt—which is more risky but pays a higher interest rate than senior debt—at below market cost.

 

Source: marketwatch.com

The post Freddie Mac to lower financing costs for landlords who cap rent rises appeared first on AAOA.

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Investing in a Vacation Rental Home? Start at the Beach

American Apartment Owners Association - Wed, 08/08/2018 - 11:20am

The advent of online rental firms like Airbnb has changed the way many people think about vacations. Renting a vacation house for a week or two offers good value and doesn’t tie people to a single second home.

While renting a house at the beach or in the mountains for a vacation has been around for at least decades, the number of rental properties in these locations is growing. If you are considering purchasing a vacation home to use as an investment, you want to get the best return you can for that investment.

Vacation rental manager Vacasa has fashioned a list of the top 25 U.S. locations for buying a vacation rental property. The firm analyzed historical home sales in high-density vacation rental markets then factored in the gross rental income less typical operating costs for vacation rental properties in each given region. By comparing each region’s net operating income with the cost of buying a home, Vacasa created a picture of each vacation rental market’s aggregate capitalization rate, or cap rate*, and used it to order its list of the top 25 vacation rental markets.

The firm also offers these tips if you are shopping for a vacation home:

It’s a great time to buy Even though the word is out and more people than ever before are investing in vacation rentals, there are still plenty of affordable areas to buy a vacation home.

More markets are extending their booking seasons Growing rental demand and improved guest experiences such as online booking and hotel quality amenities have led to many vacation rental markets extending their seasons. As booking seasons expand, so does occupancy, effectively increasing revenue for vacation homeowners. Buying low in a 1-2 season market that shows potential to become a 3-4 season market is likely to pay off down the road.

Going big can pay off To maximize [return on investment], consider investing in large vacation homes that make good family rentals, but don’t have much demand as primary residences. For example, seven-bedroom homes make great income-generating properties, but there’s little demand for these homes because seven-bedrooms is more than most families need as a primary residence.

Here are Vacasa’s top 10 markets along with the median home sales price and Vacasa’s cap rate. Visit the firm’s website for the full list of 25 top markets.

Forgotten Coast, Florida >Median price: $336,900
>Cap rate: 9.6%

Smoky Mountains, Tennessee >Median price: $231,100
>Cap rate: 8.1%

Kissimmee, Florida >Median price: $253,400
>Cap rate: 7.1%

Myrtle Beach, South Carolina >Median price: $251,000
>Cap rate: 6.9%

Hilton Head Island, South Carolina >Median price: $423,500
>Cap rate: 6.8%

Emerald Coast, Florida >Median price: $397,400
>Cap rate: 6.5%

Ocean City, Maryland >Median price: $291,100
>Cap rate: 6.5%

Okemo/Ludlow, Vermont >Median price: $273,600
>Cap rate: 6.1%

North Kona, Hawaii >Median price: $543,900
>Cap rate: 6.1%

Lake Chelan, Washington >Median price: $388,600
>Cap rate: 6%

 

Source: 247wallst.com

The post Investing in a Vacation Rental Home? Start at the Beach appeared first on AAOA.

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The Advantages Of Investing In Single-Family Rental Houses Vs. The Stock Market

American Apartment Owners Association - Wed, 08/08/2018 - 11:18am

I started my financial career in banking, eventually progressing to insurance and then to financial advisor over a 24 year career — 21 years as a Series 6 and then Series 7 securities licensed representative. In that span of time, I developed a unique perspective regarding the advantages of the rental market since I owned rental houses and also stocks and mutual funds in my investment portfolio.

First, it should be said that having IRAs, 529 plans for children and 401(k) plans are all excellent vehicles to save for the future. Most investors are limited by the options they are offered. This is true particularly for 401(k) plans where the investor cannot take advantage of owning residential real estate. And although there is an exception for self-directed IRAs, it has limitations — the balance of the account being a notable one.

On the other hand, the advantages of investing in real estate are numerous. First, one advantage of owning rental houses is that you can use leverage of five-to-one compared to the two-to-one in stocks. For example, if an investor buys a $100,000 house, he or she can do so with an investment of $20,000 financing the balance of $80,000 thus owning $100,000 of real estate. Conversely, an investor who owns stocks can invest (“leverage”) the same $20,000 and borrow $20,000 from the brokerage firm where they maintain an account or from a bank who will accept that as collateral.

Both examples involve investing $20,000. In the real estate scenario, the investor has obtained a $100,000 asset. The stock investor will have $40,000 of stock or mutual funds. If both increase in value — let’s say 5% the first year — the real estate investor has made $5,000, while the stock investor has made $2,000. That is significantly more for the real estate investor on the same $20,000 investment. Compound this over 20 or 30 years and it could account for a difference of tens if not hundreds of thousands of dollars.

The second advantage of owning rental properties is that the investor can take depreciation starting the first year, and doing so over time can reduce the tax burden in April because of the IRS’s treatment of rental property. Stocks and mutual funds cannot be depreciated to lessen the tax burden. However, they can be in accounts that are tax-deferred. Rental properties grow tax-deferred as well.

The third reason, and for many the biggest reason, is that people can touch and feel real estate. It is tangible. Some investors want to see their houses with their own eyes. They want to work on these properties to improve the value and positioning that asset, generating greater yields through increased rent. As a rental house increases in value, the owner can “harvest” profits by taking out a new loan or refinancing, thus cashing out. This new money can be used to purchase other houses, increasing the value of the portfolio and creating a higher and larger return. If this process is utilized every few years an investor could own five, six or even 10 rental houses after making one initial purchase. Remember, $100,000, $200,000 or even $300,000 of real estate only requires an attritional $20,000 to $40,000 investment.

Regardless of what individuals believe or chose to do, eventually single-family rental homes provide the small investor the ability to diversify and deliver sold gains that may yield significantly larger profits than alternative investments.

 

Source: forbes.com

The post The Advantages Of Investing In Single-Family Rental Houses Vs. The Stock Market appeared first on AAOA.

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Half of U.S. homes are now more valuable than before the real-estate bubble burst

American Apartment Owners Association - Wed, 08/08/2018 - 11:15am

There’s a split emerging in the U.S. housing market: Some are becoming more valuable than ever, while others struggle to emerge from the financial crisis.

More than half of the homes nationwide are now more valuable than their pre-recession peaks, according a report released Thursday by real-estate website Zillow ZG, +4.21% The national median home value is now $217,300, an increase of 8.3% on the year and 8.4% above the bubble-era peak. In 21 of the nation’s 35 largest markets, the median home value is now at an all-time high.

Driving much of the home value appreciation nationwide is a reduction in the number of homes available on the market. Inventory contracted 4.8% over the past year. Indeed, the tight supply of homes for sale has contributed to what some have called the most competitive home buying season on record.

Some markets have rebounded faster than others post-recession. In seven of the country’s largest housing markets — Dallas-Ft. Worth, Seattle, Denver, San Antonio, San Jose, Austin and Portland, Ore. — more than 95% of homes are worth more than the pre-housing boom peak.

Denver has experienced a particularly notable rebound: The median value is now $397,700, or 65.5% higher than its previous peak in 2006, and more than 99% of homes are more valuable than they were in the bubble years.

Metropolitan areaShare of homes worth more than pre-recession peakMedian home value (June 2018)Year-over-year change in home valueUnited States50.4%$217,3008.3%New York, N.Y.28.5%$429,3006.7%Los Angeles-Long Beach-Anaheim, Calif.64.4%$646,3007.6%Chicago, Ill.14.6%$220,4005.8%Dallas-Fort Worth, Texas97.7%$229,40011.6%Philadelphia, Pa.35.9%$228,1005.9%Houston, Texas97%$198,6005.8%Washington, D.C.22.1%$399,5004.2%Miami-Fort Lauderdale, Fla.9.6%$272,9007.7%Atlanta, Ga.64.3%$204,60011.6%Boston, Mass.83%$455,6007.2%San Francisco, Calif.85.8%$953,60011%Detroit, Mich.32.5%$154,9009.7%Riverside, Calif.6.5%$356,8007.4%Phoenix, Ariz.12.5%$254,7008%Seattle, Wash.97.3%$492,70011.4%Minneapolis-St. Paul, Minn.61.3%$261,3007.6%San Diego, Calif.63.4%$583,7006.6%St. Louis, Mo.51.3%$161,4005.5%Tampa, Fla.18.9%$204,60010.9%Baltimore, Md.8.7%$264,8005%Denver, Colo.99.6%$397,7007.4%Pittsburgh, Pa.87.8%$141,3007.9%Portland, Ore.94.8%$391,2005.9%Charlotte, N.C.88.2%$195,80011%Sacramento, Calif.19.8%$400,1006.4%San Antonio, Texas98.8%$185,0005.6%Orlando, Fla.5.4%$226,9009.7%Cincinnati, Ohio63.9%$160,9006.6%Cleveland, Ohio31.2%$141,1007.1%Kansas City, Mo.71.6%$181,4009.2%Las Vegas, Nev.0.8%$264,30015%Columbus, Ohio83.6%$182,2009.1%Indianapolis, Ind.68%$152,8008.5%San Jose, Calif.98.7%$1,287,60027.2%Austin, Texas98.7%$296,5005.7%

But almost the opposite is happening in Las Vegas, where less than 1% of homes are worth more than their pre-recession peak. “Despite widespread and consistent home value growth today, the scars of the recession still run deep for millions of longer-term U.S. homeowners, and it may take years of growth for their home to regain the value lost a decade ago,” Zillow senior economist, Aaron Terrazas, wrote in the report.

Meanwhile, renters are faring somewhat better these days, according to Zillow. The median rent nationwide only increased 1.3% over the past year to $1,440, marking the second straight month in which rent appreciation has fallen below the overall rate of inflation.

For those renters who are looking to buy homes in the near future, that’s certainly welcome news, as it can now take years to save up enough for a down payment thanks to the breakneck pace of home price appreciation.

 

Source: marketwatch.com

The post Half of U.S. homes are now more valuable than before the real-estate bubble burst appeared first on AAOA.

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What’s the deal with Zillow changing its Zestimates?

Inmannews - Wed, 08/08/2018 - 10:01am
Although Zillow has previously said Zestimates never factor in list prices so they can remain independent estimates of value, there are, in fact, cases where information Zillow gains from the list price is used to tweak the Zestimate, according to the company.
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The town names that spell trouble for homeowners and their agents

Inmannews - Wed, 08/08/2018 - 10:00am
A neighborhood's name alone can say a lot about the income and home value of its residents, a new study from Porch has found.
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Why nobody should be surprised by Zillow’s latest moves

Inmannews - Wed, 08/08/2018 - 9:56am
Rob Hahn responds to Zillow’s recent news: acquiring a mortgage lender, Zillow Offers, getting a brokerage license in Arizona and entering the rental space.
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A Look at WalletHub’s Top 20 Markets for Renters

American Apartment Owners Association - Wed, 08/08/2018 - 9:29am

WalletHub recently published a study comparing more than 180 rental markets based on 22 key measures of attractiveness to generate a list of the best and worst markets for renters.

Arizona dominated the list with eight of the top 20 markets coming in that state. Only two east coast markets—Nashua, N.H. and Lewiston, Maine—cracked the list. (Tampa just missed the cut, ranking 21st in WalletHub’s list of 182 cities.)

The worst markets on the list included markets like Detroit, Memphis, Tenn., Cleveland, Baltimore and Providence, R.I.

Despite notoriously high rents, markets like New York (123) and San Francisco (45) weren’t near the bottom of the list.

To generate its score, each of 22 metrics was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for renters. That was used to generate a weighted average across all metrics.

The firm’s data set ranges from the difference between rental rates and mortgage payments to historical price changes, the cost of living and jobs availability.

The following slideshow features the top 20 markets in WalletHub’s study: 

 

Source: nreionline.com

The post A Look at WalletHub’s Top 20 Markets for Renters appeared first on AAOA.

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Home prices in the nation’s metros reach an all-time high

Inmannews - Wed, 08/08/2018 - 8:50am
Home prices in the nation’s metropolitan areas reached an all-time high in the second quarter of 2018, according to a new survey from (NAR).
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WATCH: Why is Silicon Valley so in love with real estate right now?

Inmannews - Wed, 08/08/2018 - 8:41am
Between the abundance of capital, millennials hitting the workforce and technology evolving to allow true tech-enabled brokerages — real estate and Silicon Valley are in a red-hot romance. Get an insider's look at present and future real estate investing onstage at Inman Connect San Francisco.
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Life-saving tips from Realtors caught in the California wildfires

Inmannews - Wed, 08/08/2018 - 8:11am
With fires expected to blaze until September, real estate professionals offered life-saving tips to stave off havoc in the weeks ahead.
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