Housing Starts Spark Positives for Mixed Bag Economic News

In market news, the Commerce Department's news of Wednesday showed new housing starts up 2.3 percent in August, the fasted single family home growth rate in several years. However, the overall housing market is still a 'mixed bag' of good news and slow economic recovery signs.

Figures being what they are, industry analysts seem to agree the overall housing marketing is up, but just by how much seems to depend on how the numbers are tallied. New home starts are still only one third what they were at the apex of 2006 before the market crashed. Still, numbers do indicate the overall market is on the mend, and the GDP is expected to get a boost from housing starts for the first time since 2005.

Last month, ground was broken on new homes at a rate 5.5 percent than in the previous year at the same time. Some 535,000 units started was actually the highest since Spring of 2010. All in all the news is actually very positive given that mortgage qualification is a lot more rigorous now than before, plus the fact that there are so many 'deals' out there due to foreclosures. New home starts are suggested to add at least 3 new jobs a piece to the workforce too, so taken as a pill this news is a big positive.

Unemployment figures from August show a downward trend in applications for benefits too. However, a Reuters table from the Labor Department still indicates percentages of unemployed on a slight rise. That said, it's obvious the jury's not in on just whether or not recovery is imminent. Consumer spending went down in August on the news that oil prices jumped. The volatility there indicating how sensitive and perhaps fragile the economy is to even the slightest acute changes. With the holiday season closing in, it seems vital that new job creation should come into play to spur spending and growth.

The Top 25 Real Estate Tweeters' Twitter Feeds

In our business Twitter and Facebook are simply a must engagement tool. Digital PR to our Travel News segment, any company that does business online simply has to make us of and communicate via social media. This 'almost' goes without saying now. I say 'almost' because there still are companies out there resistant (hard headed) enough to believe digital communication is a trend.

Lennar Top Twitter Feed of September

At the other end of the spectrum, there are the movers and shakers in every realm working the social media airwaves. Below you will find this month's real estate elite on Twitter, along with a brief synopsis of what they do and do not do right.

MSN Real Estate - Microsoft's real estate social media component really needs no intro. As for what they do right, 40,000 followers and a post an hour says a lot about being serious. On the other hand a blurry avatar and not following so many (171) shows some lack of caring and real engagement.

WSJ Real Estate - 71,800 followers and an avatar that is not blurry show the WSJ is in the running for the most influential Twitter feed among real estate feeds. Following almost nobody may also be a sign we should all 'unfollow' them too. They don't exactly burn up the two way conversation with tweets either.

O'Neill Real Estate - Isn't it nice to see a smiling face in the top ten real estate peeps on Twitter? Toronto's George O'Neill is actually a lot more 'engaged' than the aforementioned news gurus up there. With 20 something thousand followers and following a couple thousand peeps, O'Neill also tweets very often, and not just his own stuff. Not a lot wrong here.

Real Estate Pro - Oliver Graf had the good sense to snatch a great Twitter vanity label, didn't he? Near 20,000 followers, frequent tweets, the guy (or his admin) knows his stuff pretty well. Following near nobody and broadcasting his own wares too much does tend to make the passerby wonder if the agent is a narcissist or not? Get a better avatar too Oliver.

Real Estate Tweeter - Just how or what 2M is? 45,000 followers and speaking with over 3 thousand feeds, this user reveals news, news, and news about the industry. Okay, 2M are real estate advisers out of Houston. They get the nod for all they do good, and a Cheshire grin for the ugly avatar.

NYT Real Estate - What do you expect? It's the New York Times after all. I can remember when the NYT was resistant to the whole concept of Web 2.0, engaging online, wanting peeps to pay, pay, pay for online subscriptions, blah blah. Their real estate Twitter feed has a herd of followers, some 60 something grand ' but Oppps! Apparently the world's most famous newspaper is too proud to follow anybody but their own reporters and their own journalistic kind. Sad. I decided not to follow them either, but the avatar is very nice.

 Real Estate HQ ' - The name says a lot. 37,000 plus followers, following almost 8500, tweets frequently, and actually @ other people! If not for their ugly stock image avatar, these guys could be the best real estate Twitter gurus in real estate. I followed them, and tweeted for them to change that stupid avatar there.

Real Estate Global - Ugly. I cannot get past ugly, Web 1.0 marketer avatars and websites. Despite this feeds obvious real engagement (they really do know their stuff),  40,000 followers and 20, 000 followed is a perfect ration to indicate a Twitter user is on the job. Tweeting in a broadcasting fashion? Well, Real Estate Global is not first on this list, are they?

Real Estate Marketer ' - Anybody that uses the word marketer in the name' 30 something thousand following and following nobody, this feed should probably not be in this list, but' Twitter listed em, not me. At least their avatar is a cute little blue Monopoly house. I didn't follow these guys for obvious reasons.

Real Estate Law - I am sitting here thinking about the old 'lawyer joke' about attorneys chained together at the bottom of the sea. I wonder if their is a way to chain lawyers together at the bottom of Twitter? Oh, in this case it would not be fair anyway. The feed connected to some of the world's leading realty attorneys is actaully one of the best on Twitter, which I find interesting because lawyers generally have zero time. Value and relevance wise, Real Estate Law offers up very useful stuff for agents and homeowners too. Like; 'Real Estate: Argument Report: When Can a Foreclosure Be Appealed?' A tweet that just may help somebody. Fix the avatar guys.

The Real Estate Book - Another broadcasting feed, with what appear to be a good number of 'bought' followers, this real estate entity does engage with frequent tweets to many thousands. We won't be following them, but you may find some of their tweets useful. The feed links to a mediocre cookie cutter listing/agent search site.

LA Times Real Estate - Again, a major news contingent that broadcasts to many thousands. That's all that can be said for or against such Twitter engagements really. To be honest, the LA Times never really impressed me much in any regard. Of all the newspapers I ever reached out to, LA Times is at the top of a long list of publications that are content to not give the time of day. Sorry, my feeling. The feed here kind of reflects this too. I put em here cuz Twitter shows em tops and because they do reflect good content about So Cal homes. (maybe that is good enough?)

Zillow - These guys should really be tops on Twitter. There, I said it. Not a fan of corporate Expedia-type online services myself, Zillow does offer a lot of value for users. Their Twitter is proportionalely useful too. No big broadcasters, frequent as any, and with 70 something gran in followers, maybe I should have put them up there? Well, they did start their name with a Z, after all. I followed em.

Chicago Real Estate - Somebody needs to explain Twitter to Newman Realty. Maybe even the Internet as a whole? Besides the nice brown color, and the passable logo over there, this Illinois agency seems to be going through the motions on Twitter and via their website. But then, Scott Newman's site is new, maybe I should cut them some slack? Nah! The top tweet goes full Brian Solis narcissist; 'My radio debut! http://lnkd.in/v2wHn7'

Real Estate FSBO - Huh? This feed's last tweet was in 2009. Is this a foreclosed upon Twitter feed? It happens once in a while, a nice outfit hooks up in social media and then the passion and enthusiasm falls by the wayside. The link to the website goes to two happy faces in the middle of the word 'soon' so' How did six thousand peeps follow them?

Real Estate Board NY - One of the world's most famous real estate boards has their foot in the social media door with this feed. Broadcasting useful NY industry news, not many will be enamored with anything here. There are 13,000 followers, but I do not live in NY. Talk to real people more guys.

ET Real Estate - The Economic Times' feed is yet another example of a big media outlet 'telling' followers all about what's important to ET. I always wondered why fans follow around behind rock stars, but financial newspaper back doors? This one needs some attention badly.

Real Estate Center ' - The Real Estate Center at Texas A&M University, one would think, could get some students to maintain their Twitter feed properly. Not caring to follow too many, even frequent posts all about self interest to six thousand is' lacking. At least the link to TAMU takes followers to A&M's nice website. I ain't following tho.

Real Estate, band - You guessed it, this feed has nothing to do with real estate. The band feed and their site does however, do a better job of social media engagement than 90 percent of Realtors. Tongue in cheek aside, I left this one in to illustrate just that point. I guess we can all look at these feeds and determine that real estate as a whole may need to ramp things up digitally. But then, I have been preaching that for a while now.

Real Estate Agent - Ditto everything bad for this feed. The last tweet was in June, they follow absolutely one person, and all in all it looks like a place holder for some coming feed. Almost 4 thousand followed already? Not us tho.

 

Tampa Real Estate ' - I like these guys. 59 minutes ago they tweeted to six thousand plus, a classy Twitter that follows about 1500, Tampa has always been a real estate haven. I cannot say much for the blog and the website behind the feed however, but not one of these Tweeters is perfect. Given that Twitter and Facebook may become more valuable than a good landing page' You get the message, at least Tampa Real Estate is a voice, or is that a tweet?

Calgary Real Estate - Jim Sparrow likes to water ski, and tweet. A ratio of near 7000 followed to 17000 followers is pretty good as far as that goes, but Sparrow also tweets important info frequently. Just what skiing has to do with buying homes there (we ain't talking snow here), I am not sure. The agent does have a very nice site linked to this feed too. I followed him.

Lennar - This feed should be a candidate for 'best' where Twitter social impact goes. Hundred something thousand followers and following, all relevant tweets, and even the name of the social media director. Transparent and putting real people where interested passers by and followers are' Nice. I followed. Rated Best

AOL Real Estate - AOL Real Estate has a Klout score even higher than mine. 64 means the guys engage at a pretty high level, and behind the Twitter feed you'll find customary AOL looks. I must say I was skeptical AOL would have any sort of decent feed, but they do. Usually, anything associated with the once dominant brand gets watered down and turned mediocre. Not so here.

REALTOR.com - The flip side of expectations from AOL above, the best domain name in the industry offers up about as mediocre a feed as is imaginable. A blurry avatar and twelve thousand followers for a brand that should have 200,000? Sorry, I am disappointed. These people actually have money, I do my digital footprint across 20 domains with my salary. Give me a break guys. Put up a nice logo there and get your admin to follow some peeps. Rated Biggest Disappointment

A lot can be read in between the lines of what I call brand symbolism. We do, a lot of our clients do, inestimable work load with so limited resource. My motto for online engagement has always been, 'if you can do it right, just don't do it.' True, not many have the resources to do perfect branding across their network, but outfits like these massive news media contingents and real estate 'go to' people? Realtor up there should take that feed down until it can be properly branded with graphics ' it sets a horrible example. As for the others? Some like Tampa and Lennar up there, they really have it going on.

Let us know if we missed anybody here for a top 25 list. We actually do enjoy giving notice to great digital engagement.

 

Buyers' Rate Decide South Carolina Mountain Retreat's Price

Buyers will soon have a once in a lifetime opportunity to set a price for a suave Marietta, S.C. estate with a panoramic view of the South Carolina mountain foliage, situated in one of the most sophisticated communities in the country.

The home in question boasts of 4.4 acres of softly sloping natural landscaped grounds in the Cliffs at Mountain Park, and comes with 6-bedrooms, 5.5-bathrooms and mountain-peak views of the Caesar's Head and Table Rock from several rooms. Grand Estates Auction Company will conduct the absolute auction on Tuesday, October 16^th at 1400hrs.

No minimum bid or reserve price is detailed in Absolute auctions, which are quickly becoming the favored method for trading elegant top-end real estate world-wide due to their transparency & promptness.

Stacy Kirk Reich, president of Charlotte-based Grand Estates Auction Company, says, 'Grand Estates Auction owners are driven sellers who are cognizant of the fact that live auction processes provide fair market value in its undiluted and speedy avatar. One fortuitous bidder will be the owner of this fabled mountain retreat on October 16^th.'

The 4,693 square foot home offers the best quality & a contemporary look, and is ideal for that perfect family get-away. Conceptualized & built with the sagacious owner in mind, it comes with a commodious floor plan with high windows to ensure that the panoramic views of the beautiful sights are not missed. An outdoor living room with a cozy fireplace, a spacious garage for 3 cars, an indoor resistance pool, a comprehensive gourmet chef's kitchen, two master suits and many of the most desirable pleasantries will ensure that you live like a king. The grounds feature lush landscaped gardens and open spaces.

The entire gated community is designed to evoke old-World European charm. Extensive walking & biking ways run as arteries through the protected forests. Unique to this community, is a lazy Village at Mountain Park, a pedestrian enclave that will soon feature stylish boutiques, eat-outs, gardens and an outdoor amphitheater.

The auction will start precisely at 1400hrs on 16/October/2012. Arrangements can be made if you'd like to bid remotely. October 12^th is when you can get an information packet and can drive down for a preview. A USD 100,000 check accompanied by a bank guarantee letter will be mandatory for the bid registration. Call Grand Estates Auction Company now at 877-877-2152 to schedule an appointment.

5 Ways to Jump Start Your Online Lead Generation

Image / freedigitalphotos.net

1.Relevant and useful content

The success of your generating leads online is dictated by your website and the content and information your web pages are comprised of. It's often easier to produce a website with content that you think should be included. But this is not the right strategy. The better approach is to always put the interest of the end user in mind and don't simply throw up words about your company/products/services. Ask yourself questions like:

Why would anyone visit my website?

What content would a visitor find useful?

Is the presentation of my content interesting?

If your website offers content that resonates with your web visitors, you not only provide value, but you also increase trust and the 'stickiness' of your site that will help increase the chance of converting visitors into potential leads. Some examples of useful content include market reports, how-to's, neighborhood guides, and resources for buyers and sellers.

2. Use a contact form

Although, there many ways to display your company's contact information on your website, a contact form is the single most important entry point for users and the 'work horse' for your lead generation activity. A contact form can be integrated with web a web analytics tool (see below) to offer rich data regarding who, when, where and how your visitors are contacting you so you can make informed, data-driven decisions on how to make improvements.

Tracking this data also allows you test elements of your contact form (layout, communications, colors, etc.) to optimize and improve for better conversions. You can apply the principles of a contact form throughout your website on various pages; don't just focus on the contact information page. For example, property pages and product/services pages lend themselves very well to contact forms and can be a massive source for generating inquiries.

3. Optimize call-to-actions

Every page of your website has the potential to generate a lead for your business. Therefore, it's important to think about the objective of each page and what you would want a visitor to do when they land on the page.  For a real estate business, site-wide call-to-actions like 'what's my property worth?' or 'get the latest market information' can be very effective to help create interest and convert visitors to warm leads.

Once you have decided the objective of your pages, you need to optimize for performance. First and foremost, this means the main 'call-to-action' of your page needs to be somewhere very visible, ideally above the fold (upper half of the page) as it will drive significantly more clicks than other placements.  Also, there are many variables surrounding a call to action that should be constantly tested and optimized. This includes testing different communications, buttons, layouts, colors, and styles' all of which can have an impact on conversion rates and the success of your overall lead generation efforts.

4. Track leads with Analytics

Google Analytics is essential for measuring the performance of your online lead generation activity and the overall success of your website. With Analytics you can set goals and events for a variety of conversion activities on your website. This includes tracking clicks of links, downloads of files, and successful completions of contact forms.  Tracking these conversion events gives you a laser focused view of what marketing channels are converting best so you can clearly identify where to spend your online marketing dollars and optimize your cost per lead.

Without Analytics and some measurable KPIs in place, it will be very difficult for you to gauge what's working and how to scale your lead generation efforts. Ask your web developer to setup your goals in Analytics and create reports so you can start making decisions based on hard data instead of instinct.

5. Run targeted Ads

Google Adwords is a power house for lead generation and is the single most effective online channel bringing targeted traffic to your website.  With Adwords, you can run campaigns in a highly controlled and focused manner to target specific keyword queries your customers are searching for in Google. You may also run targeted banner Ads in relevant websites associated with your niche and market.

The beauty of running Ad campaigns on Google Adwords is that you are in complete control of your campaigns and can make changes at a very granular level. Coupled with Google Analytics, you can identify what types of campaign variables (keywords, Ad copy, frequency, demographics) work best in terms of traffic to your website and conversion to leads via your contact forms or other call-to-actions you have set as goals.

 

Bob Samii is an online marketing strategist and founder of inMotion Real Estate Media, a real estate marketing and web development agency helping companies generate leads and increase brand visibility. You can find him on twitter: @cultureslurp

 

Real Estate Selling Skills For Investors

When it comes to the skills involved in selling residential real estate, we tend to think of real estate agents and the general class of sales skills that go with being a licensed sales person. On the other hand, real estate investors are not out to get listings or drive buyers all over town viewing dozens of different properties, they are about getting their specific property sold, and this calls for a different approach.

Image courtesy: www.freedigitalphotos.net/

As one who has been both a real estate agent and a real estate investor, and sold properties in both markets, I've experienced both sides of the business. For purposes of this article, we're going to discuss the thought process that goes into making money selling real estate as an investor.

Investors who are planning to sell a property themselves are usually working with one of two different kinds of buyers ' investor buyers or owner occupant buyers. This is an important distinction.

Those who are attempting to 'turn' a property very quickly with a minimum of work are usually selling to other real estate investors who are likely planning to rehab the property and hold it for rental. These investor buyers want the lowest possible price so that there is plenty of room to allow for positive cash flow after any necessary repairs or renovations are completed. Their objective is cash flow. If you want to successfully sell properties to this type of buyer, 'the numbers' are everything. Location is also important, but at the end of the day, the numbers have to be right to attract an investor who will want the property.

Essential skill number one at this level is knowing how to negotiate great deals so that you can leave plenty of profit margin for your investor buyer.

Those who are planning to rehab a property and sell it to an owner-occupant buyer are not so concerned about the potential cash flow. When your buyer will be living in the property, the focus is on making the property attractive to the type of buyer that will want to live in that particular area. Location is also more of a factor when selling to owner-occupants.

Higher priced properties in better locations can expect buyers who are better educated, have higher incomes and more sophisticated tastes. Any updating or rehab work must be chosen and planned carefully for buyers with distinctive tastes and desires.

On the other hand, selling properties to owner-occupants in middle to lower income areas will tend to have more of a focus on affordability and perhaps creative financing techniques to help the buyer get in the home.

Entry level home owners with average incomes often have more difficulty qualifying through traditional channels, and may need the seller to take back a second mortgage so that the buyer can qualify for an 80% first mortgage. If the investor is smart enough to get in the deal with the right numbers, they can sell the house and make all their money back, plus some cash profit from the 80% LTV on the first, then hold a note for monthly income in the form of a 20% second mortgage. This is a selling skill that can yield an up front cash profit along with a sustained cash flow. As long as I am getting my costs back and making a decent net profit at closing, the risk of holding the second is much lower.

Lead generation for investor buyers or owner occupant buyers is relatively easy because buyers are trained to look for sellers. Getting buyers to call you can be as simple as running a classified ad, putting up a few bandit signs on the roadside near your property, (make them READABLE from the car, please), or putting up a simple website that says you have properties for sale. Photos are a must. Include flyers in the window of the property so that any potential buyer stopping by can see your price and terms clearly, along with contact info. Buyers will find you if you make it easy enough for them.

Selling skills for real estate investors are much more along the lines of creating a transaction that fits the type of property you have to sell, and the type of buyer you want to attract. Whether you wish to sell to other investors quickly for cash, or you wish to go for a higher potential cash profit by selling to owner occupants, the real objective is to understand the needs of your buyer and cater to those needs. Your buyers will reward you for it.
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Donna S. Robinson is a 17 year real estate industry veteran, investor and author located in Atlanta, GA. Follow her on twitter at donnaconsults and read her blog on www.RealtyBizConsulting.com

Top Reasons Homeowners Insurance Policies Get Voided

If there is one thing that anyone who owns a homeowners insurance policy would like to avoid at all costs ' it's having their policy voided by the company. There are a few common reasons why many homeowners' insurance policies are avoided, most of which are easy to avoid with a little common sense and forward planning.

Image/freedigitalphotos.net

The top reasons why homeowners' insurance policies are often voided include;

Deliberate Damage

One common occurrence that many homeowners' insurance companies regularly deal with is property being deliberately damage, and then having claims filed on the property. This is also commonly seen in car insurance claims, but will almost always result in termination of your policy. Deliberately damaging property and then attempting to file an insurance claim is fraud, and is not taken lightly by insurance companies. Those that are able to convince insurance companies to payout for deliberately damaged property will often feel the legal ramifications at a later date if their actions are discovered.

Lack of Receipts for Claimed Items

Many homeowners' insurance policies are also going to cover items within the home. If your property is damaged, it is important that you have receipts for the items that you are looking to claim. For insurance purposes, as well as accounting purposes, you should save receipts for medium to large purchases that you may someday want to claim in order to avoid having your policy voided.

Illegitimate Flood or Fire

When a house is flooded or suffers fire damage, experts are called in to evaluate the cause of the fire and flood. Often times these will be attributed to faulty wiring or plumbing, which is covered under most homeowners' insurance plans. However, if the experts called in to analyze the situation are unable to determine the cause of the fire or flood, or believe that the cause is nefarious, the insurance company may feel compelled to void the policy.

High Number of Claims

Policies that have an unusually high number of claims throughout their lifetime often come under increased scrutiny from insurance companies. Although none of the claims may appear to be fraudulent, the unusually high number of claims can suggest negligence on the part of the home owner. Insurance companies reserve the right to void policies with an unusually high number of claims, and often do so when it is cutting into their bottom line.

Changes in Property

Another reason why many homeowners' insurance claims are often voided includes undocumented changes to the property. If you added several extra rooms to your home and did not inform the insurance company, then attempt to file a claim for those rooms being damaged, the insurance company may choose to avoid your claim on the basis of not being informed of changes in the property that they are insuring.

There are many reasons why an insurance company may decide to avoid a claim. As a general rule of thumb, you should save receipts, document and inform them of changes in the property that they are covering, and also document any damage that your property incurs over the lifetime of the policy.

 

Contributing Writer Larry Smith is an insurance specialist  who works for HomeownersInsurance.net.

Rising Foreclosures Nudge Publishing of New Real Estate Deals

Latest reports suggest that foreclosures in the United States were up in the month of August. This was followed by an announcement by Investors Classifieds that new real estate leads will now be offered for free. Investors Classified is hoping that these new real estate leads will help interested parties unearth hidden real estate bargains from the latest batch of foreclosures.

The leads will reach the inboxes of thousands of interested investors around the clock, to ensure that they are privy to all the important real estate investment possibilities that might have otherwise slipped through their fingers.

When the report pertaining to increased foreclosures was made public, there was a sense of shock in the industry, although this presents itself as a golden opportunity for people interested in bying properties as investments. Their investment portfolio is sure to be enhanced by these latest additions at prices way below the current market value.

Investors Classified also hopes that these new developments will ensure that there is greater interest among potential investors, who'll now want to be more aware of the happenings in the real estate market. Along with the knowledge of the run of the mill purchases & sales, potential investors will also have an opportunity to make smart decisions by focusing on good foreclosure opportunities.

The free leads are currently being offered at Investor Classified's website. All potential investors simply need to sign up with their basic information such as their name, contact address, phone number and e-mail address which are safely stored by Investor Classified. The signed up individuals will then get a steady stream of real time updates on every new investment opportunity that presents itself. This of course will have both the business-as-usual deals as well as deal pertaining to properties that have been lined up for foreclosure.

 

Cole Real Estate Investments Hit Upsurge

Thirty-nine single-tenant retail acquisitions in 12 states, amounting to USD 172.2m ' That's how much Cole real Estate Investments (Cole) has garnered over the past 30 days.

Founded in 1979, Cole Real Estate Investments is among the largest active players in the core real estate asset space. Real Capital Analytics, a leading research firm, states that Cole is the leading buyer of all single-tenant assets over the past decade in the United States. On July 2012, Cole & its related entities owned or had under their management over 1,880 properties or over 69.5M square feet, across 47 states and with a combined acquisition cost of over $11.4B.

Brian Garrigan, Vice President, Single-Tenant Retail Acquisitions, states, 'Our rather conservative strategic focus has been on core real estate properties that have long-term net leases and are home to creditworthy individuals. We are able to tap into the targeted options, which ensure that our portfolio of high-quality, single tenant retail properties remains diversified'.

Major portfolio transactions included:

• A 20-site convenience store portfolio that had 19 Stripes stores in Texas & one Road Ranger store in Illinois that was purchased by Cole for a combined price of USD 80M.
• The Benihana restaurant portfolio was acquired via a sale-leaseback transaction for USD 47.4M. Thirteen locations across Florida, Illinois, Minnesota, Texas, Alaska, Georgia & Michigan are part of this portfolio. This deal includes a new 20-year NNN leases with options.
• The Wawa Portfolio has 3 sites spread across New Jersey and Pennsylvania amounting to a combined USD 21.5M.

Over the last 30 days, the most salient acquisitions were made by Cole at

• USD 6.8M for the Gold's Gym in Broken Arrow, OK;
• USD 2.4M for the USAA Banking Facility in Fayetteville, NC;
• USD 14.1M for the Pick 'n Save in Sheboygan, WI, among others

Acquisitions exceeding USD 1.9B in real estate since early 2012, among which USD 716.6M are that of single-tenant retail, were completed by Cole. Acquisitions professionals from Cole have confirmed their attendance for the ICSC Western Division Conference in San Diego slated from 19/Sept'/12 to 21/Sept'/12'.

Miami Leads the Upswing in US Real Estate Recovery

Considered one of the leaders in the revival of the property market in the United States, Miami has just witnessed a significant increase in home prices again in August, according to new data from Miami Association of Realtors.

Overseas buyers are again the catalysts behind this appreciation, now in its ninth consecutive month. The median selling price of Miami-Dade condominiums is now at USD 146,500, an increase of 28.4% over the last year with pricing continuously appreciating now for 14 consecutive months. Meanwhile, the median selling price of single-family homes find themselves at USD 195,000, an increase of 10.8% versus previous year.

Though current inventory is below optimal, sales remain strong and are driving up the prices. Expectedly, the demand for Miami properties is seeing an upward trend too, mostly driven by foreign buyers and investors who acknowledge Miami's investment friendliness. The mini boom that Miami is seeing is not just thanks to foreign buyers but also due to a significant population growth driven by migration from across other U.S states, baby boomers & local consumers with increasing appetite for property.

The average selling price for condos in Miami-Dade County is USD 283,497, an increase of 20.9%; it is USD 408,810 for single-family homes, an increase of 28.4%. Compare these numbers with the state average in August where condos were selling at USD 102,980 and single-family homes were selling at USD 147,000. These numbers published by Florida Realtors Industry further cement the perception of Miami as a top real estate destination. Residential President of the Miami Association of Realtors, Patricia Delinois (top left), says;

'Miami's leadership position as a prominent world city is expected to remain for the foreseeable future.'

Businesses, residents, short & long term visitors, tourists, judicious investors and second homebuyers are all queuing up to make best use of the opportunity that this city has on offer. Data indicates that there is strong supply for 4.2 months in Miami-Dade. Strong demand for bank owner condos and better processing of short sales ensure that the listings are scooped up in a hurry and also that the prices continue to go up. As for the marketing end of things in Miami, the chart below shows where buyers are coming from.

Where the sales came from ' Courtesy Miami Association of Realtors

Understanding Real Estate Investing Formulas: Quick Turn ' Quick Flip ' Wholesaling

Every real estate investing strategy has some type of formula that is used by professional investors to help them quickly qualify a particular property. These formulas are often tweaked by the investor to suit their specific needs, and the formula is also influenced by the prevailing market fundamentals, as well as the choice of exit strategy.

Image via Freedigitalphotos.net

In this particular article we're going to examine the 'standard' formula that is used when the strategy desired is to sell a residential property quickly, to another investor, for a fast cash profit.

For details on the strategy we are discussing today, you may wish to refer to my previous article that explains this strategy and how it works.

The basic 'fast cash' formula used by professional real estate investors looks like this:

ARV X 65% ' Repairs ' Profit = MAO

ARV refers to the After Repair Value. This is the likely appraised value or selling price after all repairs are completed and the property is ready to rent or resell. This number is crucial because everything else is derived from the ARV.

During the housing boom ARV's kept rising year after year, meaning that investors ended up paying more and more for investment properties. When the market collapsed on the investor side, many investors were wiped out because they had bought properties using ARV's that were too high. This had resulted in offer prices that were too high. In the end the investors were stuck with properties that they had paid too much for. Accurate ARV numbers are a must.

Next, the ARV is multiplied by a percentage. In our example formula we are showing 65%. Since the strategy is to sell the property quickly for a fast cash profit, the 65% multiplier is used as a way to leave money on the table for your buyer. If there is not enough profit in the deal for another buyer, you will not be able to sell the property quickly, if at all.

Let's say that the subject property is estimated to have an ARV of $100,000. If you multiply $100,000 times 65% you get $65,000. Essentially what you are doing is taking 35% off of the top to leave as a profit margin for your investor buyer. This percentage can be even lower today, leaving more money on the table for a prospective buyer. With property values down, a savvy investor may lower this percentage to say, 50%. This helps insure that the property can be resold or 'flipped' quickly.

If an investor is planning to sell a finished property to an owner occupant, instead of another investor, this percentage could be as high as 80%, giving you as the buying investor a higher offer price and an advantage when making an offer. So the percentage can be raised or lowered depending on the situation and what you plan to do with the property.

Repairs are the next item in the formula. The idea is to subtract the total cost of all repairs that will need to be done to get the property up to the anticipated After Repair Value. Repair costs vary from one region of the country to another. Investors usually develop a good feel for quickly estimating repairs after they have some experience.

It's a good idea to have a professional contractor or 'handyman' do a repair estimate for you if you have no experience with this. I have found that a good rule of thumb for repair costs is to keep repairs below 20% of the ARV unless you plan to live in the property yourself. If you exceed a 20% repair budget, it may be more difficult to keep your profit spread in tact.

Profit is the next item. This is referring to YOUR desired profit goal. You've already accounted for your investor-buyers profit margin when using the 65% multiplier already discussed. Insert the number you want to use as your gross profit margin. The total amount of profit you can reasonably expect will largely depend on the ARV of the property. Generally the higher the ARV, the more profit you can include for your share. While profit totals do vary from one deal to the next, a ten to twenty percent profit margin is a good rule of thumb for what to expect. On a $100,000 ARV that would be $10K to 20K. On a $1,000,000 ARV your profit could be $100,000 or more.

So, here is the entire formula broken down, using numbers in place of the words above:

$100,000 X .65 = $65,000 minus repairs of $10,000 minus $10,000 (profit) = $45,000 Maximum Allowable Offer.

In other words, if your property will be valued at $100,000, you leave $35,000 for your investor-buyer's 'spread', repairs will cost $10,000 and you wish to gross $10,000 on the deal, you'll need to buy the property for no more than $45,000. If you luck out and buy it for less, you'll make even more. If you have to pay $50,000 instead of $45,000 you'd end up grossing about $5,000 for yourself. Keeping your buy price at or below the MAO ' Maximum Allowable Offer will help insure that you can sell the property quickly and make yourself a fast cash profit.
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Donna S. Robinson is a real estate investor, market analyst and investing coach located in Atlanta, GA. Follow her on twitter at donnaconsults. Read her blog at www.RealtyBizConsulting.com

Investing in Property in Place of a Pension

With a significant decrease in defined benefit schemes and more emphasis being placed on defined contributions as pension provisions, the responsibility for investing for the future is increasingly shifting from the employer to the employee. Taking responsibility for how your pension contributions are invested can be daunting and require significant research and investigation.

© Jakub Krechowicz ' Fotolia.com

An alternative investment many are choosing to take is in real estate. As the economy starts to pick up, some feel this the right time to be venturing into investment property. Instead of making employee contributions to pension schemes or squirrelling money away in savings, it could be worth considering channelling that money into a second property. Better still, diversifying your risk by both investing in real estate as well as contributing to a pension may be an attractive solution for your future.

Signs of Recovery

Living as we do in the aftermath of a housing market decline, it pays to be weary when investing in real estate. However, while some investors are still shy of venturing back into real estate, now could be an attractive time to invest. According to the Wall Street Journal last week, the housing market is showing signs of improvement and the S&P/Shiller Home Price Index showed that on a national scale, prices had returned to their early 2003 levels, so perhaps now is the time to buy while prices are still relatively low.

You Can't Live in a Pension

It may sound obvious, but you can live in a property. Choosing to invest by buying, for example, a rental apartment which is lower in value than your own home gives you options should your personal financial circumstances change for the worse at some time in the future. If monthly mortgage payments on the apartment are lower than the payments on your own home, then if times were really difficult, you have the choice of selling your home and moving into the apartment, thus freeing up any equity from your former home and reducing your monthly outgoings. This isn't why you invest in a second property as a pension provision; but it can certainly add to your peace of mind.

Keep it Local

If you have lived somewhere for a considerable time, the chances are you know more about your local property market than you may realise. In addition to an awareness of sale prices, you are likely to know about transport links, schools and businesses in the area; all important factors in investing in a good rental property. This knowledge is what could give real estate the edge over other forms of investment for your pension: you may well feel more confident investing in what you know.

Holiday Home Pension

Becoming a landlord isn't the only way to use property to provide for your future. If you are fortunate enough to be able to afford a holiday home, you have all the same benefits that come with the choice of selling to realise appreciation in price or leasing ' perhaps to holiday makers ' to take an income, but with the added advantage of being able to holiday there yourself and enjoy your investment in the interim. However, if contemplating a holiday home overseas, be especially diligent in your research and consider local taxes, bureaucracy and exposure to interest rate fluctuations; all of which will have a bearing on the success of your investment.

Financing an Investment Property

With the Fed's apparent commitment to keeping mortgage rates low and quantitative easing efforts focused solely on mortgage-linked debt; more affordable loans could make purchasing real estate as a pension provision more appealing. Although lenders have been more cautious in recent years, lending is starting to increase and if you have a sizeable down-payment this will work in your favour in attracting competitive interest rates. It may be worth considering fixed rate mortgages now when interest rates are at record lows to ensure you can accurately forecast the return on your investment. With property taxes open to increases, fixing your mortgage could mean one less thing to worry about.

Before approaching a lender for an investment property mortgage, discovering your credit score can give you a heads up on how your circumstances will be viewed and therefore what your options might be. When looking into financing a property investment, care should be taken to ensure that mortgage payments could be met during times of vacancy to avoid getting yourself into an undesirable situation.

Property as a Long Term Investment

Regardless of when you buy, if you decide to invest in real estate as a pension provision, the long view should be taken. One advantage of investing in property is that, assuming you meet the mortgage payments and pay the mortgage in full by the time you reach retirement age, you have the flexibility of taking an income from the property or selling if market conditions are favourable and reinvesting that lump sum elsewhere. It is the potential for appreciation over the long term in addition to the monthly income that can make such investment an attractive prospect.

Promise Energy Optimizes Tax Incentives for Solar

Promise Energy may be the harbinger of new age solar water heating in California. The company offering of solar energy service agreements that ensure that both state and federal tax credits are maximized is not only a novel approach to savings, but a near perfect conduit to solar affordability. The company announced that it will initiate the program at the annual Southern California Association of Non-Profit Housing (SCANPH) conference, happening in LA on September 28^th.

The program will ensure that users can hedge their risks for up to 20 years, with minimal upfront investment. Jonas Villalba, VP of Sales for Promise Energy, added:

'There is great pride in partnering with affordable housing organizations to ensure energy savings, reduced operating expenses and increased property value with the installation of solar water heating setups. This is what Promise Energy has always promised: we're not just in the business of solar equipment, but in the business of selling energy.'

With strong research & resource backing, Promise energy is all set to change the phase of energy creation & utilization for large housing projects & commercial establishments. Homes & commercial establishments can use solar heated water for little or no money, while also ensuring that they save on a significant sum every year on gas bills.

How solar works ' courtesy Promise Energy

Villalba continues, 'We see numerous environmentally & financially aware customers who'd like to take advantage of solar water heating but are unable to do so due to the relatively high capital required. With a Promise Energy Service Agreement, the whole end-to-end system is handled by Promise Energy for up to 20 years'.

Andy Mannle, VP of Strategic Development for Promise Energy continues, 'This cements us as true partners for our customers. Tax credits and generous rebates coupled with a strong go-green environment will ensure that this opportunity will be available to all'. Companies finding new ways to make alternative energy more affordable, especially in collaboration with non-profit organizations and communities, is one sure way of reaching a more sustainable future for us all.

About Promise Energy, LLC:

Promise Energy LLC is a comprehensive solar water heating company committed to making affordable solar hot water throughout the Western part of the U.S. Partnering with all stakeholders, Promise Energy is working on cost effective means to reduce operating expenses & provide a greener tomorrow.