United States
MEET ANY U.S. CITY FROM THE COMFORT OF YOUR HOME
Welcome to our online community where real estate investors and real estate industry professionals may read and post topics related to real estate investing in the U.S.
Realtors and other real estate industry professionals
Please keep us informed and up-to-date by posting your comments about specific topics of interest. Real estate investors are eager to read about the following topics.
- The current local market and home prices
- Areas with high and low rental rates
- Up-and-coming areas
- What investors are buying and/or selling
- Where investors are buying and/or selling
- Typical cap rates and NOI for certain properties
- Student rentals, multi-family housing, apartments, etc.
- The strategies being used by successful investors
- Areas to consider and areas to avoid
- Interesting stories about problem tenants
- New laws, bylaws and regulations
- Frauds and scams
- Tips and advice
Real Estate Investors
We want to hear from you as well. Please post your stories, experiences, insights and comments as they relate to one or more of the following topics.
- The investing strategy that you are using
- The best real estate decision that you ever made
- The worst real estate decision that you ever made
- If you incorporated and if so at what point?
- The terrible T’s (problem tenants and fixing toilets)
- Highly effective habits of successful investors
- Tips and advice
Thank you for your valuable input. We invite you to contribute on a regular basis because you will inspire others to contribute as well. As we grow our community ‘knowledge database’ all investors can use it to stay informed, save time and money.
February 08, 2011 04:30PM By Michael Stoler
Last year Canada's pension funds and institutional investors became active as joint venture partners and owners of property in major money-center cities, including Manhattan, Washington D.C., Chicago, Los Angeles and Boston.
Last spring, the Canadian Retirement Investment Fund, Oxford Properties Group, announced that it will partner with the Related Companies to develop the 26-acre Hudson Yards. Oxford acquired a 50 percent interest in Hudson Yards, investing alongside New York-based Related Companies in the 12 million-square-foot, mixed-use development. Related and Oxford will act as the general partners for the project.
As a co-developer of the site, Oxford is actively involved in development, leasing and fund-raising activities, and upon completion is expected to participate in its operation.
Oxford Properties is one of Canada's largest real estate companies and a wholly owned subsidiary of the Ontario Municipal Employees Retirement Systems. OMERs will provide up to $475 million in equity.
Last month, Oxford announced that it will invest $4 billion in the next five years in the United States and England. The plan would see the real estate company buy retail and office space in New York, Boston and Washington, develop new towers in London and join the ranks of companies buying the distressed debt of buildings it would like to own.
Meanwhile, the Canada Pension Plan Investment Board joined the ranks of owners of Class A office buildings with major purchases made during 2010. Last May, CPPIB announced its first foray into Manhattan with the acquisition of ownership stakes in two prime commercial office properties.
CPPIB acquired a 45 percent ownership interest in the Class A, McGraw Hill Building at 1221 Sixth Avenue from SL Green Realty for approximately $576 million including debt and working capital. The office tower original developer Rockefeller Group retained the remaining 55 percent ownership interest in the building.
In addition, CPPIB formed a formed a joint venture with SL Green to acquire a 45 percent ownership stake in the 300,000-squar-foot office building at 600 Lexington Avenue, for approximately $87 million.
In October, CPPIB and Vornado Realty Trust announced a joint venture in which CPPIB acquired a 45 common ownership interest in two prime office properties in Washington. D.C. owned by Vornado. These transactions represented CPPIB first real estate investment in the Central Business District of Washington, D.C.
In addition to office buildings, CPPIB plans to own retail shopping centers throughout the United States. Last April, CPPIB formed a joint venture with Long Island-based Kimco Realty to acquire prime neighborhood shopping centers throughout the U.S. The initial investments were in five retail centers located in cities including Hollywood, Fla. CPPIB acquired a 45 percent interest in the venture and Kimco retained a 55 percent interest in addition to acting as the operating partner.
CPPIB current real estate partners from the U.S. include AvalonBay Communities, the Blackstone Group, Brookfield Properties, Kimco, Morgan Stanley Real Estate Funds, the Rockefeller Group, SL Green Realty and TIAA-CREF Asset Management.
In December, an investment group led by RXR Realty closed on the purchase of the office tower at 1330 Sixth Avenue. The joint venture paid $400 million to Otera Capital, a Canadian lender that foreclosed on the property in 2009. RXR's joint venture partner was the Public Sector Pension Investment Board, which has been active in New York City real estate since 2000.
Another active investor in New York City is a Toronto-based private equity Group, Onex Real Estate Partners. In 2005, Onex invested $92 million in the Sky View Parc mixed-use development in Flushing, Queens.
Michael Stoler is a columnist for The Real Deal and host of real estate programs "The Stoler Report" and "Building New York" on CUNY TV and on WEGTV in East Hampton. His radio show, "The Michael Stoler Real Estate Report," airs on 1010 WINS on Saturdays and Sundays. Stoler is a director at Madison Realty Capital as well as an adjunct professor at NYU Real Estate Institute, and a former contributing editor and columnist for the New York Sun. ??
Submitted by Judy Kazimer
Our local unemployment rate is a couple of points above the national average at 12.1%.
South West Florida is largely a service-based economy so when others don’t come to visit it hurts our local economy. There really hasn’t been too many downs here, at least not like this one. But again the skyrocketing real estate prices in past years didn’t help. We saw this coming, especially when hearing of reports of an exodus of nurses from our community because they could not afford to live here. They get paid pretty good and if they couldn’t afford it, how about our service workers who probably make half as much they do?
So what can we expect? in 2008, it was predicted that we would not begin to see an improvement in our market until mid 2011. Is that still true? Have we hit bottom? I believe we’re skipping across the bottom, but I don’t foresee the real estate market in our area gaining any momentum yet. There’s quite a few variables. We are primarily a service industry, tourism at the top. If the rest of the country and the world is hurting then we can expect to feel some pain.
Lenders have made lending more difficult. It is ridiculous some of the hoops the banks are making their buyers jump through to get a loan. However the interest rates are at an all time low. Some loans are as low as 2.99% so if you have a good credit score and some down payment money, and are willing to jump through some hoops you can get a good rate on a loan.
As a result of the lower housing prices and falling market Lee County has been forced to lower their property taxes which once again is a win for the investor. With so many Short Sales and REO homes on the market the amount of buyers has declined so if you own rental property in this market your phone is ringing off the hook. Another exist stategy for the savvy investor is lease purchasing the home. So many consumers have damaged credit right now and cannot get a mortgage and a lease purchase is the only chance they have of getting a home. This is a great stategy especially for an absent land lord; you get a good down payment, more likely than not the payments are made on time because the leasee wants the credit for the house purchase and does not get it if the payment is late, and you have no repairs to worry about because they are responsible for that in the terms of the lease. If you are looking for the opportunity instead of focusing on the negative now would be the time to buy in SW Florida.
As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.
Top six reasons why now is the best time to buy a vacation or rental home:
Whether you’re looking for a charming beach bungalow or a high rise condo with spectacular views, a host of market conditions have come together to make buying a vacation home a smart move. The drop in home prices, incredibly low interest rates and the increase in demand for vacation rentals make it an optimal time to explore a second home purchase.
1. Prices down 30-60%. In places like Sanibel, FL and greater Fort Myers, you can pick up a beach cottage or high-rise condo at extremely low prices. That’s only the beginning. Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home buy.
2. Interest rates. Rates, of course, are at historic lows. Lock in a good rate, buy a vacation home in a desirable location, and watch your asset appreciate over the long-term.
3. A relatively safe investment. Real estate has proven itself to be a safe place to park your money for the long-term. (Long-term is key). Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold.
4. Make a profit. Or, better yet, make your vacation home pay for itself. Only planning on using your vacation home a few months out of the year? Rent it out short-term to vacationers looking for a great place to stay. Many homeowners make a killing listing their homes on VRBO.com. (Vacation Rental By Owner). When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year.
5. Vacation rental demand is heating up. Overall, vacation rentals are less expensive than hotel rooms, especially for longer visits and for families. Savvy travelers know this, and are heating up the demand for vacation rentals. In addition, the weaker dollar makes U.S. destinations attractive to travelers from countries with stronger currencies.
6. The pressure of bidding wars is off. Sure, you may not get bargain basement prices on a beachfront cottage—but you might if you’re willing to buy a few blocks away. Houses aren’t exactly flying off the shelves these days, but buyers now have less pressure to make a hasty decision. Buyers looking for deals on vacation homes can really do their homework and get a good deal.
L. Shulz
Jan. 29, 2011
Jobgrowth:
"A Good Morning America report highlighted 5 American cities poised for dramatic job growth in 2011. They are Portland, Houston, Minneapolis, Washington, DC and Orlando.
Each city has different factors driving job growth. For Portland it is the health of the technology sector lead by Intel. While Houston lost big during the Great Recession, it is poised for job growth in the energy sector with oil prices skyrocketing again. Minneapolis shows indications of taking on growth in small parts manufacturing and in retail.
The Mall of America in Minneapolis is currently undergoing an expansion. The Washington, DC beltline is home to many business services that prefer to be in close proximity to the halls of government.
While the government sector may not grow, the services that feed it are poised for another growth spurt, and many of those companies are headquartered in or near Washington. Orlando began to see an upsurge in tourism during 2010, and that improvement in Orlando’s main business is expected to continue in 2011. This is bringing more people into the area for jobs"
Another source:
http://www.daytonaemployment.com/blog/2011/01/05/florida-job-growth-pred...
Immigration:
http://www.orlandopoliticalpress.com/2011/01/25/florida-business-groups-...
http://www.orlandopoliticalpress.com/2010/12/23/census-fast-growth-in-st...
Housing Starts:
http://blog.verticallivingorlando.com/?p=194
Existing Home Sales:
http://blog.verticallivingorlando.com/?p=196
Vacancy Rates:
http://blog.verticallivingorlando.com/?p=198
http://activerain.com/blogsview/1766963/declining-apartment-vacancy-rate...
D. Hovey
Five Reasons Why Canadians Are Snapping Up U.S. Real Estate
Oct 18th 2010 at 9:00AM
Filed under: Investing, Loans, Real Estate
Canadians have long had an interest in U.S. real estate, especially in sunny vacation spots in Florida and Arizona. It is rare though for such a great window of opportunity to open as it has now.
Whether you are looking for a vacation home or an investment, here are five reasons why now is a good time to buy Stateside:
- More Americans Are Renting. The housing crash in the U.S. combined with the financial crisis and recession have caused a great number of people to give up the "American dream" of owning a home. According to newspaper USA Today, 72% of Americans surveyed in August said home ownership was part of their dream, down from 77% at the beginning of the year. Greater demand for rental property has helped push rental returns higher in some U.S. cities, particularly for homes with three or more bedrooms. You can search historical rental rates at Rentbits.com.
- The Canadian Dollar Is Strong. The loonie has been hovering at just below parity with the greenback with the potential to break higher. The strength of the loonie is above it's historical average over the past 10 years of about US78 cents. The strength against the greenback makes purchasing U.S.-dollar denominated goods cheaper compared to most other times in the past, and most likely the future too.
-
House Prices Are Low And Affordable. The house price declines that began back in 2006 are still affecting the U.S. market, with values down 28% since that time. Some analysts don't expect house prices on a national level to begin to rise for about three years. However, house prices differ by city and some popular markets have already seen prices stabilize. Even so, it will likely be a while before U.S. house prices rise, therefore investors should be looking at the long-term. - Mortgage Rates Are At Historical Lows. U.S. mortgage rates are at a record low. At present there are 30-year fixed rate mortgages on the market for as low as 3.8%. Low rates can save a home buyer thousands of dollars over the long-term.
- Good Potential For Future Profits. The combination of the above average Canadian dollar, low U.S. house prices and rent appreciation can mean some big profits for buyers in the future. Investors should focus on the long-term because it will take some time for house prices to rise. Once the U.S. market begins to improve, the Canadian dollar will likely move back towards it's historical average, meaning gains for those invested in U.S. assets.
The U.S. housing market varies dramatically by city, so thoroughly research your area of interest before making a decision. According to USA Today, it is cheaper to rent than buy in New York, Seattle, Fort Worth, Omaha and Sacramento. On the other hand, it is cheaper to buy than rent in Arlington (Texas), Fresno, Miami, Mesa (Arizona) and Phoenix. This is based on multiplying rents by 12 months and comparing the cost to a year's worth of mortgage repayments.
Buying property in the U.S. as a foreigner is a little more complicated than it is for locals. For instance, lenders generally require a higher deposit. There are also tax implications. For more on this, look out for my upcoming blog on How To Buy Property Overseas.
And every investor thinking of buying U.S. real estate should keep a watchful eye on developments in the mounting foreclosure scandal prompting headlines right now south of the border. It may be a buyers' market, but those buyers need to be more vigilant than ever.
Statistics, trends, history & comparisons of properties across the United States.
Real estate news & research
http://money.cnn.com/magazines/business2/newrules_realestate/
Stats on all US cities
Landlording, lease options, finding money, negotiating and a whole lot more!
Lending Revives Stalled Projects
An influx of fresh capital into U.S. commercial real estate is bringing some long-stalled development projects back to life and launching new construction of apartments, office buildings and shopping centers. The moves show that the industry, in a deep slump just a year ago, has entered recovery mode... Rest of story »
Shopping Center Industry’s Exposure to Bankruptcy Filing by Borders Raises Concerns
After the retail sector went through an entire year with few major bankruptcies or liquidations, the announcement of Borders’ Chapter 11 filing last Wednesday served as an unwelcome reminder that the industry is not out of the woods yet... Rest of story »
Feb. 23, 2011
Mesa, Gilbert medical cluster emerges
Not long ago, people were wondering whether the southeast Valley's health-care industry would ever catch up with its booming population. But in the blink of an eye, historically speaking, an array of treatment and research centers has joined the region's stable of existing legacy hospitals, creating what could become a notable national health-care cluster... Rest of story »
Phoenix leads nation in retail job gains
Phoenix set the pace as about half of America’s major markets added retail-sector jobs during the past year. Fifty-one of the 100 biggest markets had more retail jobs in December 2010 than in the same month a year earlier... Rest of story »
Intel’s $5B Chip Facility to Bring Jobs, Drive Absorption
Intel Corp.’s plan to build a new $5 billion chip manufacturing facility here will add jobs, along with driving absorption and increasing occupancy in the industrial and flex sectors as suppliers and vendors move closer to the plant. The new Arizona factory, dubbed Fab 42, will be the most advanced, high-volume semiconductor manufacturing facility in the world... Rest of story »
Submitted by Judy Kazimer