Real Estate Investing Insights Robin Treen

  The economic landscape has seen a significant shift, with many malls, restaurants, and mini-malls closing due to changing consumer behaviors, the rise of e-commerce, and the aftermath of the COVID-19 pandemic. These closures have left an abundance of vacant retail, commercial, and industrial properties. However, these spaces can be repurposed and revitalized to serve new functions, thus transforming potential economic burdens into opportunities for growth and development. This article explores various strategies for repurposing these properties, offering insights into how they can be capitalized on for residential, commercial, and community uses. 1. Residential Conversions a. Affordable Housing One of the most pressing issues in many urban areas is the lack of affordable housing. Vacant retail spaces can be converted into residential units, addressing this need. Large, empty stores can be transformed into apartments or condominiums. For instance, the expansive floor space of a former

 In the dynamic world of finance, understanding the various sources of credit is crucial for both individuals and businesses. Credit sources can be broadly categorized into traditional, non-traditional, and private funding. Each of these has unique characteristics, advantages, and disadvantages, and offers different leverage points. This blog delves into the nuances of these credit sources, compares them, and formulates a strategy to effectively leverage them for financial growth. Traditional Credit Sources Traditional credit sources include banks, credit unions, and other financial institutions that have been the cornerstone of lending for decades. Examples: Banks : Offer various loan products such as personal loans, mortgages, and business loans. Credit Unions : Member-owned financial cooperatives providing similar services as banks but often at lower interest rates. Advantages: Stability and trust Wide range of financial products Lower interest rates for those with good credit Disad

 The idea of purchasing assets, especially real estate or stocks, during a market downturn can be daunting for many investors. The fear of further losses, combined with negative market sentiment, often leads to hesitation. However, there are numerous advantages to buying in a bad market. This comprehensive guide explores the potential upsides and strategic benefits of making investments during such times. 1. Understanding Market Cycles Markets are inherently cyclical. They go through phases of growth (bull markets) and contraction (bear markets). Historically, every bear market has been followed by a recovery. This cycle of peaks and troughs presents opportunities for savvy investors. Understanding that a downturn is a natural part of the market cycle can help mitigate fear and highlight the potential for gains. 2. Lower Entry Prices One of the most apparent advantages of buying in a down market is the lower entry price. When asset prices fall, investors can purchase stocks, real estat

 The housing market, once characterized by rapid sales and fierce competition, is now experiencing a notable shift. More homeowners are listing their properties, but these homes are taking longer to sell due to high prices and rising interest rates. This trend has significant implications for both buyers and sellers. In this comprehensive blog, we will delve into the reasons behind this cooling trend, provide insights into what homebuyers and sellers should consider, and offer strategic advice for navigating the current market landscape. The Current State of the Housing Market Increase in Listings Recent data from Zillow reveals a significant increase in the number of new home listings. In May, there was a 13% rise in new listings compared to the same period last year. This surge in listings indicates that more homeowners are willing to put their properties on the market, possibly influenced by the peak home prices and favorable equity positions. However, this increase in supply is not

  Introduction Home equity is reaching near-record highs, presenting an enticing opportunity for homeowners. According to CoreLogic, U.S. mortgage holders' total home equity rose to over $17 trillion in the first quarter of 2024, just shy of the record set in the third quarter of 2023. This increase in home equity, driven by rising home prices, offers a substantial financial asset. However, accessing this wealth is not straightforward due to high interest rates. Financial advisors suggest several strategies for tapping into home equity while emphasizing the importance of not over-borrowing. Understanding Home Equity Home equity represents the portion of your property that you truly own. It is calculated as the current market value of your home minus any outstanding mortgage balances. For instance, if your home is worth $500,000 and you owe $200,000 on your mortgage, your home equity is $300,000. The Importance of Home Equity Home equity is a valuable financial resource for homeowne

  If you want to retire in comfort, investment firms and financial news often tell us that you need $1 million in the bank. But is that really necessary? One prominent economist suggests that you can retire comfortably with far less—between $50,000 and $100,000 in total savings. This perspective challenges conventional wisdom and offers a more attainable vision of financial security for retirees. The Argument Against the $1 Million Benchmark Andrew Biggs, a senior fellow at the American Enterprise Institute, argues that the commonly cited figure of $1 million in retirement savings is overstated. In his column for The Wall Street Journal, Biggs explains that many retirees live comfortably on much less. His analysis of responses from the federal Survey of Household Economics and Decisionmaking (SHED) between 2019 and 2022 reveals that a significant majority of retirement-age Americans, 65 to 74, report managing their finances well. According to the SHED data, about 85% of retirees say th

Inflation continues to impact the economy, affecting the costs of essential goods and services, including housing. Although inflation rates have decreased from recent highs, the Federal Reserve’s efforts to combat it by keeping the benchmark rate at a 23-year high have led to significantly higher mortgage rates compared to those during the pandemic. This situation has caused many homeowners to stay put to maintain their low sub-3% mortgage rates, which in turn affects housing inventory and market dynamics. Here’s a comprehensive analysis of the current state of the housing market, factors influencing it, and potential future scenarios. Current Housing Market Dynamics High Mortgage Rates : Current State : Mortgage rates are averaging near 7%, a stark increase from the historically low rates during 2020 and 2021. Impact on Homeowners : Many existing homeowners are reluctant to sell and move due to the high rates, resulting in a "lock-in effect" where homeowners prefer to keep t

 Buying a house is a significant milestone in life, often filled with excitement and anticipation. However, the closing process, which finalizes the purchase, can be complex and stressful. What happens during this period can make or break the deal, and knowing what not to do is crucial. As a real estate agent, I often see how actions taken during the closing process can impact the success of a home purchase. Here, we'll explore the eight things you must never do before closing on a house, present arguments for both sides, and ultimately offer a balanced conclusion and practical solution. 1. Apply for Other Loans or Lines of Credit Argument Against: One of the most critical mistakes you can make during the closing process is applying for new loans or lines of credit. This is because any new debt can affect your credit score and debt-to-income ratio, potentially jeopardizing your mortgage approval. Lenders perform a final credit check before closing, and new credit inquiries can rais