Suppose we compare how orchestra violinists are paid to how residential real estate agents are paid. In contrast to violinists, who must spend a fixed amount of time in rehearsals and concerts, real estate agents receive the...more
The real estate industry – and much of our economy – is at a point where we must shift. With the pace of inflation and interest rate increases, some of those shifts will be large. And those large shifts may challenge the...more
1/3/2023
/ Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
Mortgage Lenders ,
Multi-Family Development ,
Pass-Through Entities ,
Real Estate Investments ,
Real Estate Transactions ,
Recessions ,
Residential Real Estate Market ,
Strategic Planning ,
Tax Planning ,
Underwriting
Real estate finance isn’t complicated. Investors frequently use an income analysis to calculate the purchase price. First, investors decide what percentage return they want on their investment (ROI)....more
8/22/2022
/ Commercial Leases ,
Commercial Property Owners ,
Commercial Real Estate Market ,
Environmental Social & Governance (ESG) ,
Green Buildings ,
Housing Market ,
Inflation Reduction Act (IRA) ,
Interest Rates ,
National Association of Realtors ,
Price Inflation ,
Property Valuation ,
Real Estate Investments ,
Real Estate Market ,
Rent ,
Rental Property ,
ROI ,
Supply and Demand ,
Tax Incentives
As I discussed in Identifying Suspicious Activity in Real Estate Transactions, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has long had its eye on the real estate industry. As with Hatto’s...more
Unfortunately, real estate is too frequently a vehicle for money laundering. This article discusses red flags that real estate investors and real estate professionals and market participants should look for so they can avoid...more
Under the Securities Act of 1933 (1933 Act), all securities offerings must be registered with the SEC unless there is an exemption. Registering securities is a costly and time-consuming process requiring SEC review and...more
1/17/2022
/ Accredited Investors ,
Capital Raising ,
Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Crowdfunding ,
Private Placements ,
Public Offerings ,
Real Estate Investments ,
Regulation A ,
Regulation CF ,
Regulation D ,
Rule 506 Offerings ,
Rule 506(c) ,
Section 504 ,
Securities ,
Securities and Exchange Commission (SEC) ,
Small Business ,
Sponsors
This article is part of a series discussing how the American Families Plan might affect real estate investments. Previous articles discussed how the American Families Plan proposes eliminating the stepped-up basis for many...more
6/1/2021
/ Biden Administration ,
Commercial Real Estate Market ,
Estate Planning ,
Estate Tax ,
Estate-Tax Exemption ,
Farms ,
Gift Tax ,
Gift-Tax Exemption ,
Proposed Legislation ,
Real Estate Transactions ,
Safe Harbors ,
Section 1031 Exchange ,
Small Business ,
Step-Up Basis ,
Tax Planning
How Investors Value Real Estate Return on investment (ROI) drives real estate prices. Much of the time, investors calculate value by applying their desired return to net operating income (NOI). For example, if an investor...more
3/8/2021
/ Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Economic Downturn ,
Interest Rates ,
Investors ,
Real Estate Investments ,
Real Estate Market ,
Recessions ,
Rental Property ,
ROI ,
Supply and Demand
The COVID-19 pandemic abruptly changed what people need from real estate, whether it be a concert venue, a strip center, or a shopping mall. Savvy retail real estate owners who, like the Music Hall patrons, adapt to tenants’...more
12/16/2020
/ Commercial Leases ,
Commercial Property Owners ,
Commercial Real Estate Market ,
Commercial Tenants ,
Coronavirus/COVID-19 ,
Hospitality Industry ,
Mixed-Use Zoning ,
Rental Property ,
Restaurant Industry ,
Retailers ,
Shopping Centers ,
Shopping Malls
During the pandemic, some real estate owners are struggling. Retail assets (other than essentials such as grocery, pharmacy, and gas stations) may experience reduced rental income as tenants go out of business. Demand for...more
As with violins, real estate owners can obtain different documents regarding a property’s value. Licensed real estate professionals can provide several types of opinions regarding a property’s value. Real estate brokers may...more
Like musician compensation, rent in commercial leases can be comprised of many different payments to a landlord. A lease may include base rent, gross rent, additional rent, common area maintenance charges (CAM), ground rent,...more
Like instrumental music parents, business owners also may face numerous commercial real estate lease options. Whether they are entering into their first commercial lease or are expanding their operations, business...more
For home sales, multiple listing services (MLS) are the main source of information about properties listed for sale. And, buyers cannot access MLS listings on their own, because MLS limits most access to licensed real estate...more
6/3/2019
/ Antitrust Provisions ,
Antitrust Violations ,
Commercial Real Estate Market ,
Dual Agency Disclosure ,
Federal Trade Commission (FTC) ,
Fee-for-Service ,
Flat Fees ,
National Association of Realtors ,
Price-Fixing ,
Real Estate Agents ,
Real Estate Brokers ,
Restraint of Trade ,
Sales Commissions
Closed circuit TV now may be streamed into web storage. These cameras can recognize faces and may unlock doors for known individuals.
Keyless entry systems have moved from fobs and key cards to phone apps. Motion sensors can...more
3/3/2019
/ Audio Recording ,
Cameras ,
Commercial Real Estate Market ,
Consent ,
Property Managers ,
Real Estate Investments ,
Risk Management ,
Security and Privacy Controls ,
Smart Devices ,
Technology ,
Video Recordings ,
Wiretapping
Acquiring commercial real estate is a lot like an orchestra in that purchasing real estate consists of purchasing many more assets than meets the eye. When you buy commercial real estate, you know you are getting the land and...more
Recently, I heard a parent express concern that her child had been encouraged by the school music teacher to switch from violin to viola because the orchestra needed more violas. For switching to viola, the child would...more
4/30/2018
/ Bonuses ,
Borrowers ,
CMBS ,
Commercial Real Estate Market ,
Eviction ,
Foreclosure ,
Incentives ,
Landlords ,
Mortgage Brokers ,
Mortgage Fraud ,
Occupancy ,
Purchase Agreement ,
Real Estate Transactions ,
Recessions ,
Residential Real Estate Contracts ,
Risk Mitigation ,
Tenants ,
Unpaid Overtime
A recent Wall Street Journal headline announced “SEC Looks Into Kushner Cos. Over Use of EB-5 Program for Immigrant Investors.”
It is not unusual to hear that a company is being investigated by the government over...more