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04 Feb 2019

Cryptocurrencies are on the rise.

way to draw in new business. And while these methods do still work — to some degree — the fact is that the first signs of change are in the air.
The younger crowd knows that the first place to go for information is the Internet, and companies are cropping up all over to accommodate this need. A quick online search will show you which properties are for sale in your area and what they are worth. Often, the consumer is privy to this information before the real estate agent.
Related: To Spur Real Estate Deals, Open Up the Data
An industry that’s ripe for change.
It’s time for a change. Take a look at the real estate industry, and you will see that this industry is one that has grown complacent. Even though technology and consumer acceptance have grown, with instant information access, and consumers becoming more comfortable with the idea of selling their own homes, the real estate industry has struggled to keep up with the changing tide. In short, this industry is waiting for the right innovation to come along and turn it on its head.
Who will step forward?
New, potentially disruptive technologies such as automated agent selection and virtual home staging are all happening. These innovations are not quite yet at the level to overtake the industry though.
Zillow’s planned acquisition of Trulia has everyone wondering whether this company has big things in store for the industry, but that remains to be seen.
What does this mean for the industry?
What does this all mean? Simple: that the smart entrepreneur who addresses the pain points in the real estate industry and asks the age-old question “is there a better way?” just might be able to come up with an idea — or an app — that will help to make life easier and better, and in the process, inject real change into the real estate industry.
While the full impact of the digital revolution on the real estate industry has yet to be seen, there is a strong movement towards empowering the consumer. With people being able to access the data that they need to make more informed decisions, it’s scaling back the need for the less informed middleman.
Smart real estate agents will embrace these technology advances and use them to survive, while others will woefully cling to their brochures and rolodexes, lamenting that the old ways are better because that’s the way that things have

04 Feb 2019

Trade cryptocurrencies.

“where’s the best, most sustainable community for my business, according to where’s the best workforce and infrastructure, taxes and utility costs.”
Cruikshank, whose company provides entrepreneurs and economic development agencies access to comprehensive location information, encourages business owners to do their homework well before committing to a site. Whereas large businesses can pay for site-selection consultants, “small- and medium-sized companies would never hire a site selection consultant because they cannot afford it,” she said.
But entrepreneurs need not fret since many site-selection decisions rely on online information — something an entrepreneur with a tight budget can afford, she added.
“Choosing a business location is perhaps the most important decision a small business owner or startup will make, so it requires precise planning and research,” according to the Small Business Administration website, which calls for “looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes.”
The following are five tips to consider in the search for a business location:
Related: What to Know Before Selecting the Office Space of Your Dream
Consider the surrounding community.
When hunting for a business site, entrepreneurs should consider whether a given community is actively seeking new companies. Contact the local economic development agency to learn about possible incentives, which could include financial support for tenant improvements, municipal programs giving preference to area businesses or local tax and planning department waivers.
Economic development consultant Justin Erickson advised entrepreneurs to lock down incentives prior to signing a lease or making a commitment as “communities sometimes do not follow through with promised incentives once a company has signed a lease or bought a building.”
2. Beware of problem locations.
Some locations are great. Others are miserable. Consider the revolving restaurant site, a spot that’s home to a new restaurant every six months: Each new owner believes that he or she has the secret sauce to make the site work only to call it quits after a short stretch. The fact is, not all locations are the same. Regardless of the product, service or business plan, some locations are simply bad for business.

04 Feb 2019

To invest, you can use an exchange

With demand driving up costs, rental prices are at an all time high. This spike in demand is highly beneficial for property investors who will see their investments appreciate, as well as earning steady monthly returns.
4. Capital is increasingly accessible. Beyond seeking a bank loan, there are increasing numbers of private capital investors available to offer financing in exchange for a portion of the returns.
An example is Blackstone Capital, which has spent $8.6 billion in the past 24 months on housing to hold and rent. They have invested in 48,000 homes across America. Consulting the PERE 50 will provide insight into many of the options available to you.
5. You can be a stress-free landlord. Welcome to 2014, when being a landlord doesn’t have to be a headache anymore.
With technology-based solutions and the rise of service-oriented businesses, the bulk of the work takes a fraction of the time and energy. There are two options: You can either offload this entirely to a reputable property manager or you can go it alone, using apps and online software to market your properties, collect rent and analyze your investments.
It’s time to make your move, America! I am passionate about getting more Americans involved with real estate investment. I’ve seen first-hand how the wealth from income properties can transform lives, families and futures.
Whether you’ll be making your first buy or maximizing your portfolio’s earning potential by outsourcing the hassle of property management, and let an out-of-sight, out-of-mind real estate investment pay dividends, it’s time to take advantage of this market.
In New England years ago when a farmer went to town to sell his sheep or pick up supplies, he would let his flock graze on the big grassy pasture in the center. These open grassy fields were considered the commons and were by design available to any farmer needing them. This shared resource — much like today’s Internet — benefited everyone.
The same could be said about availability data in the commercial real estate field. People need it to find a space or move from one. While everyone stands a chance to benefit when availability information is distributed more openly, many commercial real estate pros are afraid that sharing will reduce their earning potential. This couldn’t be further from the truth.

04 Feb 2019

Other commodities include things like metals, energy and agriculture.

“If you find yourself trying to decide between a better location at a higher rent versus a lesser location for a lower rent my advice is go for the better location,” said commercial lease consultant Dale Willerton. “When I’m consulting to tenants and doing site selection my job isn’t to find the cheapest location — it’s to select a site that will help the tenant maximize sales.”
Related: To Spur Real Estate Deals, Open Up the Data
3. Identify target customers.
Entrepreneurs must carefully consider their target clients when developing a business plan. Then they should seek locations abundant with this type and ensure that these areas can provide employees with the needed skills.
“Estimate the market size and the customers’ purchasing power in the primary area,” Morato said. “Driving or walking time to the location should be studied. Also, examine the vehicular and traffic flow and take note of physical barriers and traffic limitations or detours.”
4. Pay a fair price.
The ideal location will rarely be one with the lowest price tag. Entrepreneurs should be realistic and ready to pay for a good site. An ideal location will contribute toward the enterprise’s success. A poor one will result in rapid closure. Good locations are not cheap. A business plan should include a realistic projection of the costs involved.
“It may cost us more to do business here, and there are definitely some handicaps to doing business here, but there is a tremendous upside to being near your customers,” said Paul Beach, an executive who runs a company that makes lithium-ion batteries in California.
5. Know the competition.
Very rarely will a business be the only game in town. Entrepreneurs must assess the competition and be certain there’s enough business to go around. If a given community is already saturated with similar businesses, consider a new location. Those determined to compete in a tight market must offer a product or service sufficiently game changing to draw enough business to make the operation viable.
“Identifying the competition in a market helps determine if your business idea is feasible,” according to the Iowa State University website. “A competitive assessment also directs how a product/service should be positioned.” This analysis will determine if the company can gain a competitive edge by offering something

04 Feb 2019

The fundamentals of economics drives the price of commodities

always been done. Unfortunately though, as history has shown time and again, nostalgia is rarely a good business model — no matter what industry you are in.
What do you think? Is it time for the real estate industry to be disrupted? Which technological advances do you foresee in the near future? Share your thoughts in the comments sections below. People don’t get what they deserve. They get what they negotiate. This is especially true in the world of real estate.
While the process of negotiating a commercial lease can be stressful for most business owners or decision makers, keeping these five factors in mind can help entrepreneurs avoid some of the most common mistakes:
Related: What to Know Before Selecting the Office Space of Your Dreams
1. Find leverage.
Regardless of whether it’s a landlord’s market or a tenants’ market, something can alsways be used for leverage.
Create leverage by using time. Most leases take months to complete so avoid procrastinating with the office search. Don’t let a lack of time decide the lease terms.

Create leverage by keeping mum about any feelings about the space, especially to the listing broker or landlord. This will enable the broker to do a better job negotiating.
If the landlord’s side recognizes a prospective tenant’s desire for the space and an inability to choose anywhere else, the owner just received some leverage. It’s always a good idea to have alternative space options at hand.
“Always have a solid back-up option at hand, especially in an improving real estate market,” said Jason Bollhoefner, vice president at Corum Real Estate Group in Denver. “Being prepared to walk away is a very powerful aspect of successful negotiation.”
2. Don’t think rates. Think term.
Tenants often become caught up in rates upon finding a space. While the rental rate is important, especially the gross rate, the term of the lease can have a more significant impact on finances.

04 Feb 2019

Metrics like that give

Construction is on the rise, foreclosures and repossessions are decreasing. The U.S.. Census Bureau recently reported that new residential sales in May 2014 have increased an estimated 16.9 percent compared to the same period last year.
Far from least, US median property sales are up by 11 percent annually, the biggest increase since 2012.
Related: Why You Should Be Investing Your Money In Real Estate
It’s clear, conditions are optimal. Given today’s economy, with low property prices, decreased interest rates and a high demand for housing, there has never been a better time to profit from owning rental property.
In my opinion, the next five years will be the best ever for those who choose make their fortunes in real estate. If you already own property, hold onto it dearly. Don’t be tempted to sell. If you’re still on the fence, there are five things I want to share with you:
1. Don’t miss the lucrative “bottom bounce.” The best time to purchase stock is when it has bottomed out and is rebounding upwards. I like to call this the “bottom bounce.” We can expect three-to-five years of strong appreciation after the market lows witnessed in late 2012 and early 2013.
With housing prices rising steadily this year, it’s an ideal time to invest in a rental property, both from a personal finance perspective and from a smart business investment one. Keep in mind, the earlier you act, the more money you will accrue.

2. Property hasn’t been this affordable in decades. Mortgage rates are holding at a remarkably low 3 percent. That means reasonable monthly repayment costs that make owning investment property an attractive way to create wealth.
In these market conditions, the value of the equity that an income property offers is not to be underestimated.
3. Rental prices are soaring. Despite these low mortgage rates, home ownership is unfortunately a distant dream for many Americans still recovering from the financial crash. As a result, more people are living in rental accommodations.
Related: Crowdfunding’s Next Hot Frontier: Real Estate

04 Feb 2019

Trade commodities.

the existing competition doesn’t. In the last decade we’ve seen countless so-called “disruptive” innovations emerge, bringing with them tremendous change.
New technologies continue to revolutionize our world, and along the way they inevitably render many industries obsolete. Just take a look at what digital content did to Blockbuster.
As another example, look no further than Uber, the 5-years-young transportation network that is revolutionizing the taxi industry. In its last round of funding, Uber raised a remarkable $1.2 billion on a pre-money valuation of $18 billion. Its estimated worth is today almost the equivalent of Hertz and Avis combined. Uber’s focus on fast and seamless transportation is helping to drive this company forward and the result is that it’s pushing traditional cab companies to keep up, or give up.
Just as Uber is changing the taxi industry, and web-based companies such as Airbnb are disrupting the hotel industry, the real estate industry is another industry that’s vulnerable to information-driven disruption.
Related: ‘We’re the Uber of X!’
It is very likely that the real estate industry will be one of the next industries to be hit by the changing tide of the digital age, here’s why:

A diminishing value proposition.
Diminishing value is something that’s been slowly creeping into the real estate industry for some time now. There’s less of a need for real estate agents who exist solely to provide consumers with information already available to them via Zillow. If it’s just about opening the doors for home showings, this is something that surely doesn’t warrant their 6 percent commission.
The need for real estate agents that don’t provide anything of true value is diminishing rapidly. This isn’t to say that real estate agents aren’t needed. They certainly are. Knowledgeable and professional agents offer a wealth of value. However, a differentiator that separates the wheat from the chaff is long overdue. This will allow the real estate agents who are worth their weight in gold to have a chance to shine.
Outdated methods: the way of the travel agent.
Many of today’s real estate agents still rely on outdated marketing methods and archaic business models. They think that hanging a sign on the window is the best

04 Feb 2019

Media platforms like Facebook, not all courses from all gurus are created alike.

Prime property in Paris is now running around $2,000 per square foot, according to Harvey. Compare that $2,700 per square foot for prime property in Manhattan, according to estimates from Jonathan Miller of the appraisal firm Miller Samuel.
“Americans are looking at prices in Paris compared to New York, Miami or San Francisco and discovering it’s a good value,” Harvey said.
Sotheby’s has several listings in Paris that appeal to Americans looking for pied-a-terre, including a three bedroom in the 17th arrondissement that features high ceilings and great views for $1.7 million.
The currency drop isn’t the only thing helping American buyers of European homes. With weaker economies and more of the wealthy moving to lower-tax countries, inventories for high-end real estate have been rising, and prices have been falling, throughout the region.
In Ireland, the Lisselan Estate in County Cork, a castle listed by Knight Frank, came on the market in June at 9 million euros. The price was cut to 6.95 million euros in December. Between the price reduction and currency change, the effective price cut was around $5 million.

And it’s not just castles and pieds-a-terre, many American companies and investors have been coming to Europe for deals on commercial real estate and other investments given the attractive values, Harvey said. Many of those Americans are now also looking at real estate investments for themselves, he said.
“You see many of them moving money out of U.S. equities and into euro equities,” he said. “When you look at the buying power of the dollar and expectations of a better economic cycle in Europe, real estate is a good play.” Location, location, location is the mantra of the real estate business. But finding the exact right location for a business is often a case of easier said than done.
“What a good location is depends on the nature of the enterprise and its chosen target market,” Eduardo A. Morato explained in A Trilogy on Entrepreneurship. Determine “exactly who the target customers are, their demographic characteristics, psychographic profile, motivational drivers, taste preferences and usage sophistication levels.”
During a recent Money Talk interview on KCAA radio, Statebook International president Calandra Cruikshank explained that entrepreneurs must suss out

04 Feb 2019

Media platforms like Facebook, not all courses from all gurus are created alike.

Instead of worrying about bargaining for a few percentage points off the rate, spend time negotiating the lease’s term and thinking about the company’s true needs for the future. If the wrong term is selected, a tenant will likely end up paying more in rent for a space that doesn’t work for the company than what was saved by paring 5 percent from the asking rental rate.
Related: When Your Startup Is Ready to Rent an Office of Its Own
3. It’s never true that a tenant gets anything free.
The length of the lease’s term also affects other key variables, such as tenant improvements and concessions such as rent abatement. This goes both ways. Don’t lock into a term for the lease that’s years longer than initially desired just for free rent or better tenant improvement dollars. Such improvements are never free. Tenants need to understand that these costs are always baked into the lease’s value by the landlord. The landlord makes the money back at some point.
4. Arrange for a solid legal review.
Keep in mind that while they are experienced in lease negotiations, brokers are not lawyers and are paid on commission. The commission increases with the value of a lease. Brokers do benefit from a tenant’s signing of a lease and typically receive nothing if no agreement is reached.

This structure, unfortunately, creates some conflicts of interest. Paying an experienced real estate lawyer to review the lease should be a part of the negotiation process. The lawyer is paid regardless of which space is chosen and even if the rental is postponed or the potential tenant walks away.
5. Negotiate protections for an exit.
Bargain for some protections for exits should things go wrong in the future. If a tenant feels that he or she has good visibility for the next two years but not five, it’s worth trying to negotiate for some cancelation clauses.
Finally, don’t forget to negotiate the lease. Unlike some things in life, the tenant does win from negotiating. Be creative in order to get needs met. If you are someone who has given up on the dream of real estate investment, before even giving it a serious look, consider a few trends.

04 Feb 2019

While many of the gurus might follow you around on social

The reality is if everyone has fast, accurate access to availability data (information such as square footage and the marketed lease rate), the market’s efficiency could increase, reducing the risk and friction that restrict the flow of deals. The entire industry would see an increase in the flow of deals and occupancy rates. Tenants would move out of garages. They would sublease unused spaces and businesses would thrive and grow to use larger spaces. “A rising tide lifts all boats,” President John F. Kennedy said. Put another way, when the economy improves, everyone gets a boost.
Related: How This Tech Startup Is Renovating the $12 Trillion Commercial Real-Estate Industry
Open availability data gives all brokers more information, letting them serve existing clients better, help more clients and close deals faster. Just as open grazing brought farmers to the market years ago, the commons benefit everyone.
My company, RealMassive, provides availability data about commercial real estate space to anyone wishing to use its platform. I believe in open data standards and have made its application programming interface open and free to the public.
The challenge in commercial real estate is that successful commercial real estate pros are often afraid of the unknown. They fear change. Thomas Byrne, former president of LoopNet, said at a CRE // Tech Intersect conference recently in San Francisco, “If you are successful in commercial real estate, why change?”
But brokers who want to keep their edge need to change because the world is changing. Google is here. Amazon is here. The information age has arrived and brokers must adapt to continue to succeed. A broker can choose to embrace the Internet or be wiped out by the new tide. The Internet has transformed every other industry from retail to media, and these economic sectors have adapted to stay Relevant in digital times. The commercial real estate business is finally going through a digital revolution and this requires a new way of thinking.
Now, the idea of sharing with competitors probably sounds terrifying. But consider the lesson from one of the most powerful inventions of our age: the personal computer. Initially, one company, IBM, dominated the PC industry. Because Big Blue was the industry leader, it had the power to eliminate the open PC standard, according to Compaq co-founder Rod Canion, author of 2013’s Open: How Compaq Ended IBM’s PC Domination and Helped Invent Modern Computing.
Related: 8 Ways the ‘Internet of Things’ Will Impact Your Everyday Life