Please check out my latest commercial real estate blog post regarding how vacant retail storefronts across the U.S. (think Blockbuster, think Radio Shack) are being converted to Urgent Care centers.
With the Affordable Care Act pushing more Americans into regular health screenings and care, the growth of urgent care centers is explosive. Which is good news for owners willing to re-purpose their vacant retail spaces!
Wednesday, January 7, 2015
Sunday, January 4, 2015
A Land Development Hook Like None Other!
When land developers start assembling acreage, there will be a hook for marketing once home sites area ready to sell. At the base end it's good schools, near shopping, etc. For others, there might be economic attractions.
And for others, there's well ..... sufficed to say, what better "hook" could there be to push new homesites than to say -- you get not just to visit the happiest place on Earth, but actually live there!
In Lake Buena Vista, Fla., the Walt Disney Company has carved out a portion of its theme park land and turned it into a real estate development. Mansions in the Golden Oak gated community start at $1.8 million, but they've sold as high as $7 million. Natyrally, the typical buyer is a fan of all thins Disney, which is why the community comes with a bevy of theme park perks, from door-to-gate transportation, extended visiting hours at the park, and of course, park passes.
What seals the deal for a lot of buyers is "Hidden Mickey." HM is the incorporation of "The Mouse" into the design of the home. Staircases, backsplashes and even the shape of your backyard poool can all be made to look like Mickey Mouse. To date, there are some 450 homes in the community, which is divided into four distinct neighborhoods.
Soooo, with that said, what unusual angle or "hook" can you think of for your land development planning? Is there a Gasparilla the Pirate theme, if you are in SW Florida? Or a Lebron James theme somewhere near America's North Coast near Cleveland?
And for others, there's well ..... sufficed to say, what better "hook" could there be to push new homesites than to say -- you get not just to visit the happiest place on Earth, but actually live there!
In Lake Buena Vista, Fla., the Walt Disney Company has carved out a portion of its theme park land and turned it into a real estate development. Mansions in the Golden Oak gated community start at $1.8 million, but they've sold as high as $7 million. Natyrally, the typical buyer is a fan of all thins Disney, which is why the community comes with a bevy of theme park perks, from door-to-gate transportation, extended visiting hours at the park, and of course, park passes.
What seals the deal for a lot of buyers is "Hidden Mickey." HM is the incorporation of "The Mouse" into the design of the home. Staircases, backsplashes and even the shape of your backyard poool can all be made to look like Mickey Mouse. To date, there are some 450 homes in the community, which is divided into four distinct neighborhoods.
Soooo, with that said, what unusual angle or "hook" can you think of for your land development planning? Is there a Gasparilla the Pirate theme, if you are in SW Florida? Or a Lebron James theme somewhere near America's North Coast near Cleveland?
Friday, December 5, 2014
GOT EQUITY Question Deserves A Hard Think Before You Act
In a recent news story in a southwest Florida paper, there was the headline, "Got Equity?" The premise was if you have equity in your home you can tap into that for all number of reasons.
My thought is, not so fast. It depends on why you want, or need, that money. Why is this a commercial/investment real estate story? You'll see in a minute.
A little history. One of the reasons the U.S. found itself in an economic quagmire caused by the real estate downturn was that hundreds of thousands of Americans, possibly even millions, used their homes like an ATM machine. Prodded on by greed and unsavory finance officers, people repeatedly re-financed their home mortgages, took out cash from equity that had built up significantly, then took trips, bought "stuff,"used it for extra little things.
Many people just walked away from those homes after taking out tens of thousands of dollars. For any number of reasons they had on way to pay it back -- they either lost a job, or had to undergo a pay cut, or perhaps had a need for a move but found they owed far more than the home was worth because the neighborhood had declined in value.
The combination of low home equity rates, combined with skyrocketing home values, is fueling this trend.
In the November newspaper story, when the question was asked "Got Equity," and "should you cash in on rising home values," the answer from several individuals was, "heck yes, why not?"
Well, for all the reasons above I would say, NOT. Just be careful and think it through. If you are going to plow the monies back into your home for physical improvements, then I would say yes. If you are going to consolidate some personal debt you have, or pay off some debt, that again is a qualified yes, from my perspective.
(Please note I am not dispensing financial or legal advice, just sharing my opinion).
But cashing in on rising home values, like here in Collier and Lee County, Florida, where home sale prices are substantially on the rise, is something worth thinking about. While it is positive news for the real estate industry as well as the broader economy, I still worry that individuals will "blow" the funds rather than put them to productive use.
Another alternative (and yes here comes the suggestion...you know I would work this in, right?), if you feel you just absolutely have to pull money out, is to take equity out of the home, conservatively, and use it to invest in commercial/investment real estate. I have worked with a number of individuals over the years who have done just this. In essence, the money they pull out of their home is leveraged into an investment where a tenant(s, whether it be a commercial building, or small retail center, or multifamily, pays the mortgage via their monthly lease payments. HELOCs can also be used to invest in small rental homes, if that is the sandbox you want to play in.
Interestingly, according to RealtyTrac, southwest Floridians are taking out home equity loans at a rate that is double the U.S. national average. In Collier County, Florida, which includes Naples and Marco Island, among other cities and villages, in the 12 months ending in June 2014 the number of HELOCs (home equity line of credit) was up 51 percent compared with the same period a year earlier. In Lee County (Fort Myers, Estero, Bonita Springs, et al) HELOC origination was up 55 percent. Nationally, HELOC origination was up 21 percent for the period, according to RealtyTrac.
My bottom line is this. If you are refinancing "because you can," ask yourself "should you?" And most importantly, "Why?" And think long and hard about whether a 10-day cruise is really worth pulling money out, or whether it makes more sense to invest into something where you can take profits, plow them into your own personal pension plan, and fund your cruise from that nestegg.
Just be careful if you get "home-equity-itus."
My thought is, not so fast. It depends on why you want, or need, that money. Why is this a commercial/investment real estate story? You'll see in a minute.
A little history. One of the reasons the U.S. found itself in an economic quagmire caused by the real estate downturn was that hundreds of thousands of Americans, possibly even millions, used their homes like an ATM machine. Prodded on by greed and unsavory finance officers, people repeatedly re-financed their home mortgages, took out cash from equity that had built up significantly, then took trips, bought "stuff,"used it for extra little things.
Many people just walked away from those homes after taking out tens of thousands of dollars. For any number of reasons they had on way to pay it back -- they either lost a job, or had to undergo a pay cut, or perhaps had a need for a move but found they owed far more than the home was worth because the neighborhood had declined in value.
The combination of low home equity rates, combined with skyrocketing home values, is fueling this trend.
In the November newspaper story, when the question was asked "Got Equity," and "should you cash in on rising home values," the answer from several individuals was, "heck yes, why not?"
Well, for all the reasons above I would say, NOT. Just be careful and think it through. If you are going to plow the monies back into your home for physical improvements, then I would say yes. If you are going to consolidate some personal debt you have, or pay off some debt, that again is a qualified yes, from my perspective.
(Please note I am not dispensing financial or legal advice, just sharing my opinion).
But cashing in on rising home values, like here in Collier and Lee County, Florida, where home sale prices are substantially on the rise, is something worth thinking about. While it is positive news for the real estate industry as well as the broader economy, I still worry that individuals will "blow" the funds rather than put them to productive use.
Another alternative (and yes here comes the suggestion...you know I would work this in, right?), if you feel you just absolutely have to pull money out, is to take equity out of the home, conservatively, and use it to invest in commercial/investment real estate. I have worked with a number of individuals over the years who have done just this. In essence, the money they pull out of their home is leveraged into an investment where a tenant(s, whether it be a commercial building, or small retail center, or multifamily, pays the mortgage via their monthly lease payments. HELOCs can also be used to invest in small rental homes, if that is the sandbox you want to play in.
Interestingly, according to RealtyTrac, southwest Floridians are taking out home equity loans at a rate that is double the U.S. national average. In Collier County, Florida, which includes Naples and Marco Island, among other cities and villages, in the 12 months ending in June 2014 the number of HELOCs (home equity line of credit) was up 51 percent compared with the same period a year earlier. In Lee County (Fort Myers, Estero, Bonita Springs, et al) HELOC origination was up 55 percent. Nationally, HELOC origination was up 21 percent for the period, according to RealtyTrac.
My bottom line is this. If you are refinancing "because you can," ask yourself "should you?" And most importantly, "Why?" And think long and hard about whether a 10-day cruise is really worth pulling money out, or whether it makes more sense to invest into something where you can take profits, plow them into your own personal pension plan, and fund your cruise from that nestegg.
Just be careful if you get "home-equity-itus."
Friday, November 7, 2014
Did You Know?
Did You Know . . . ?
A dollar from cash flow is generally better than a dollar from a job because the former is not subject to social security tax or self employment tax, AND it can be sheltered from income tax.
A dollar from cash flow is generally better than a dollar from a job because the former is not subject to social security tax or self employment tax, AND it can be sheltered from income tax.
Thursday, November 6, 2014
The 1031 Exchange -- Deferring A 'Voluntary' Tax
I had a question from a client I am working with who owns commercial property in Florida. He asked, "why do a 1031 exchange?"
It's simple. I replied that in an exchange you are moving 100 percent of your net equity, tax free. His response was that he felt the tax was merely deferred.
That's true. However, if done correctly, it truly is tax free. The capital gain is carried to the next property without being taxed. Further, capital gain taxes are really voluntary taxes when you really drill down into the meat of the matter.
Think about it . . . the gain is not taxed unless the owner volunteers, by selling the property! Instead of selling, many shrewd investors continue to exchange until they die -- or their LLCs continue to exchange after their death -- and the cumulative gains are forgiven because of stepped up basis rules.
Bottom line -- consult a GOOD tax attorney. IR 1031s are one of the most powerful ways under our tax code to build wealth. But there is another problem. 1031s are much misunderstood by attorneys, accountants and even real estate agents.
Do your homework. Find a CRE agent and tax attorney who understands tax-deferred exchanges.
It's simple. I replied that in an exchange you are moving 100 percent of your net equity, tax free. His response was that he felt the tax was merely deferred.
That's true. However, if done correctly, it truly is tax free. The capital gain is carried to the next property without being taxed. Further, capital gain taxes are really voluntary taxes when you really drill down into the meat of the matter.
Think about it . . . the gain is not taxed unless the owner volunteers, by selling the property! Instead of selling, many shrewd investors continue to exchange until they die -- or their LLCs continue to exchange after their death -- and the cumulative gains are forgiven because of stepped up basis rules.
Bottom line -- consult a GOOD tax attorney. IR 1031s are one of the most powerful ways under our tax code to build wealth. But there is another problem. 1031s are much misunderstood by attorneys, accountants and even real estate agents.
Do your homework. Find a CRE agent and tax attorney who understands tax-deferred exchanges.
Wednesday, October 22, 2014
New Flag, Same High Quality Results
The brand may have changed, but the quality remains among the highest in the industry.
Prudential Commercial Real Estate is now Berkshire Hathaway HS COMMERCIAL. Yes, the home office-dictated logo has the word "home services" in it. But pay no attention; it is entirely irrelevant to my team across Ohio and Kentucky.
While many full brokerages/franchises have 5-7 percent of their agents devoted solely to commercial real estate, more than 20 percent of our agents in Greater Cincinnati, Dayton, Central Ohio (Columbus), northwest Ohio, greater Cleveland, and Lexington, Ky. are full-time commercial/investment real estate agents, devoted to proving leading edge CRE solutions 24 hours a day, 7 days a week. Well, check that . . . some of my team play golf on the weekend. Nevertheless, I have the resources necessary to assist you with corporate and institutional commercial acquisition and disposition, cap rate and market analysis, re-development projects, and much more. Anywhere in the Buckeye State. Part of the Ohio-Florida connection? I can help you in both states personally.
In fact, the Berkshire Hathaway HS COMMERCIAL network is growing exponentially across the USA. Let me help you find the commercial real estate solution to the problem that keeps you awake at night.
Veterans.
Seasoned.
Experts.
Berkshire Hathaway HS COMMERCIAL: Knowledge . . . Expertise . . . Results.
Prudential Commercial Real Estate is now Berkshire Hathaway HS COMMERCIAL. Yes, the home office-dictated logo has the word "home services" in it. But pay no attention; it is entirely irrelevant to my team across Ohio and Kentucky.
While many full brokerages/franchises have 5-7 percent of their agents devoted solely to commercial real estate, more than 20 percent of our agents in Greater Cincinnati, Dayton, Central Ohio (Columbus), northwest Ohio, greater Cleveland, and Lexington, Ky. are full-time commercial/investment real estate agents, devoted to proving leading edge CRE solutions 24 hours a day, 7 days a week. Well, check that . . . some of my team play golf on the weekend. Nevertheless, I have the resources necessary to assist you with corporate and institutional commercial acquisition and disposition, cap rate and market analysis, re-development projects, and much more. Anywhere in the Buckeye State. Part of the Ohio-Florida connection? I can help you in both states personally.
In fact, the Berkshire Hathaway HS COMMERCIAL network is growing exponentially across the USA. Let me help you find the commercial real estate solution to the problem that keeps you awake at night.
Veterans.
Seasoned.
Experts.
Berkshire Hathaway HS COMMERCIAL: Knowledge . . . Expertise . . . Results.
Tuesday, September 30, 2014
It's Coming . . .
It won't be long before you are reading the words ....
"Nationally Respected . . . Globally Recognized."
"Nationally Respected . . . Globally Recognized."
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