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Tag: Commercial Real Estate

  • Nuns sell Bay Area retreat center for $11.5 million

    Nuns sell Bay Area retreat center for $11.5 million

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    The Dominican Sisters of San Rafael have sold their retreat center, Santa Sabina, to a not-for-profit organization for $11.5 million.

    The buyer is the Hoffman Institute, which, according to its website, is “dedicated to transformative adult education, spiritual growth, and the personal dimensions of leadership.”

    The organization will use the San Rafael center, built in 1939 to house young women preparing to enter the Dominican order, to conduct its seven-day residential courses.

    The institute, which has its administrative offices on Fourth Street in San Rafael, has been conducting its classes at 101 San Antonio Road in northern Novato. It purchased the property from the Institute of Noetic Sciences for $16 million in 2021.

    The Hoffman Institute sold the 193-acre property to Marin Creek, a Delaware-based limited liability company, for $20 million in May. Representatives of Marin Creek could not be reached for comment.

    “We had owned a place called White Sulfur Springs in St. Helena, California, which had been our home for 25 years,” said Matthew Brannigan, the Hoffman Institute’s vice president and director of faculty. “That burned in the Glass Fire, so we really needed to find a home quickly.”

    However, the Novato property included more land than the institute needed, Brannigan said.

    “A lot of our time and attention was needing to be spent beyond our core program,” he said. “It’s been challenging for us to sustain that.”

    “The new buyers have expressed to us a vision for that site that extends beyond what we had intended for it,” he said. “They helped us discover Santa Sabina, and it appears to be a win-win-win for three organizations.”

    The Dominican nuns have used Santa Sabina as a retreat open to spiritual seekers of various traditions since 1970. They put it up for sale in September 2023 at an asking price of $11.5 million, citing the order’s dwindling numbers and the increasing costs of maintaining the center.

    “We had several different groups to dialogue with, but Hoffman came in on all the measures that we were looking for,” said Margaret Diener, director of the center and a member of the Dominican Sisters of San Rafael. “It turned out to be a very positive fit. We feel lucky that we have found someone who wants to continue using the center as a retreat site.”

    The Hoffman Institute charges $5,350 for its weeklong retreats that feature its trademarked methodology, the “Hoffman Quadrinity Process.”

    The process was created in 1967 by Bob Hoffman, an Oakland tailor with no formal training in psychology, psychiatry or psychotherapy. Hoffman claimed to have had a vision of his deceased psychiatrist, Siegfried Fischer, telling him that the key to emotional healing is for people to reconcile themselves with the emotional trauma caused by their parents.

    In its initial form, the process involved engaging a spirit guide to establish psychic contact with one’s parents when they were children. People undergoing the process were encouraged to discharge their pent-up resentment toward their parents by crying, screaming and beating pillows.

    Brannigan, who has undergone the process and works as one of the institute’s 40 certified instructors, said that Hoffman, like developmental psychologists, attributed many emotional problems to parenting in early childhood.

    “We do invite people to look at their own parents’ childhood,” Brannigan said, “to find a place of compassionate understanding for what their parents must have experienced in their own childhood.”

    “To that extent, yes, we are inviting people to form a kind of connection to their mother and father through their own imagery and understanding,” he said, “but I wouldn’t say it’s necessarily a psychic connection.”

    As for beating pillows, Brannigan said, “We do expressive, cathartic work that helps people discharge held energy. It doesn’t necessarily require screaming.”

    Diener said, “Their work has to do with holistic integration of the self, as far as I understand it. Many of the groups that currently use Santa Sabina have similar kinds of programming, so they fit in.”

    Celebrities such as Katy Perry and Justin Bieber have undergone the process, and stories about the Hoffman Institute have appeared in such magazines as British GQ and Cosmopolitan.

    The Hoffman Institute began offering its multi-day retreat in 1985. Brannigan estimates that 120,000 people worldwide have undergone the process. He said the instruction is being provided in 13 or 14 countries.

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    Richard Halstead

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  • How A Heated Phone Call Between Kamala Harris And JPMorgan’s Jamie Dimon May Have Impacted Housing Relief

    How A Heated Phone Call Between Kamala Harris And JPMorgan’s Jamie Dimon May Have Impacted Housing Relief

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    How A Heated Phone Call Between Kamala Harris And JPMorgan’s Jamie Dimon May Have Impacted Housing Relief

    In the aftermath of the 2008 financial crisis, as millions of Americans faced foreclosure, an unexpected confrontation between then-California Attorney General Kamala Harris and JPMorgan Chase CEO Jamie Dimon set the stage for a shift in homeowner relief efforts.

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    The encounter, described by Harris in her 2019 autobiography “The Truths We Hold: An American Journey,” began as an impromptu phone call and quickly escalated into what she termed “two dogs in a fight.” According to Fortune, which originally reported on the phone call, the issue was a proposed settlement between major Wall Street banks and state attorneys general to compensate homeowners affected by the foreclosure crisis.

    According to Harris’s account, Dimon accused her of trying to “steal from my shareholders” almost immediately after picking up the phone. Harris fired back: “Your shareholders? My shareholders are the homeowners of California. You come and see them. Talk to them about who got robbed.”

    Trending: Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform allows individuals to invest in commercial real estate.

    The heated exchange, while brief, appears to have been a turning point. Harris said that two weeks after the call, the banks increased their offer from $2 billion to $4 billion for California, ultimately resulting in $20 billion in homeowner relief.

    “I’ll never know what happened on Dimon’s side,” Harris noted in her book. “But I do know two weeks later the banks gave in.”

    The settlement, finalized in 2012, provided $18.4 billion in relief and $2 billion in other assistance to California homeowners. It was a victory for Harris, who had earlier walked away from multistate settlement talks, frustrated by what she saw as bad bank offers.

    “This outcome is the result of an insistence that California receives a fair deal commensurate with the harm done here,” Harris said.

    See Also: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want.

    However, the implementation of the settlement wasn’t without criticism. Many Californians opted to sell their homes for less than they owed rather than lowering their mortgage payments. Some argue that this outcome didn’t align with the settlement’s primary goal of keeping people in their homes.

    Harris, in a 2016 interview with the Los Angeles Times, attributed that to the broader economic hardships caused by the housing crisis. “There was a large number of homeowners who just didn’t want to have the burden of the debt because they had also lost their jobs,” she explained.

    The confrontation with Dimon and the resulting settlement point to Harris’s approach to corporate accountability, a trait that could be important as she becomes the presumptive Democratic nominee for president.

    See Also: This investment company boasts a 35.14% internal rate of return (IRR) for its realized projects, allowing accredited investors to earn passive returns and avoid the headaches of being a landlord.

    Harris and Dimon’s relationship has evolved since their contentious 2011 phone call. Fortune reported that the two had lunch at the White House in March last year, when the Biden administration’s relationship with corporate America was strained.

    As Harris campaigns for the presidency, her history of taking on Wall Street could be powerful. However, she’ll need to balance it with her recent efforts to court CEO support, particularly as she positions herself against former President Donald Trump’s economic policies.

    It’s worth noting that Trump recently dismissed rumors that Dimon was being considered for Treasury Secretary in a potential second Trump administration, saying he had no idea where the speculation originated.

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    This article How A Heated Phone Call Between Kamala Harris And JPMorgan’s Jamie Dimon May Have Impacted Housing Relief originally appeared on Benzinga.com

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Dave Ramsey says he only has 3 investments — and doesn’t need stock tips from your golfing buddy. Here’s what they are

    Dave Ramsey says he only has 3 investments — and doesn’t need stock tips from your golfing buddy. Here’s what they are

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    Dave Ramsey says he only has 3 investments — and doesn’t need stock tips from your golfing buddy. Here’s what they are

    Dave Ramsey, the renowned financial adviser and radio show host, has built a reputation for advocating straightforward and simple investment strategies.

    His philosophy is rooted in the belief that investors don’t need complicated maneuvers and sophisticated assets to perform well.

    “I don’t play single stocks, I don’t screw around with gold, I don’t mess with Bitcoin and I don’t need your stock tip from your broke golfing buddy with an opinion,” he said in an off-the-cuff rant during an episode of The Ramsey Show.

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    For those who insist he “missed out” on better opportunities, Ramsey had a clear message: “Didn’t miss a thing! I’ll set my net worth down beside yours while you mouth off!”

    Instead of chasing “cool” asset classes, the financial guru says his net worth, which is estimated at $200 million, is concentrated in only three investments. Here’s a closer look at his streamlined portfolio.

    His business

    Like many ultra-wealthy individuals, Ramsey’s business ventures are a major contributor to his immense net worth. In 2024, he estimates the business will generate roughly $300 million in revenue. Since it’s a private company, it’s difficult to confirm its valuation and how much Ramsey’s personal stake in the business is worth.

    Business interests account for 41% of total wealth for those in the top 1%, according to the Federal Reserve’s Survey of Consumer Finances. In other words, starting or buying a successful business can be a great way to build a fortune.

    Fortunately, Americans are highly entrepreneurial. According to the U.S. Chamber of Commerce, 5.5 million new businesses were registered in 2023 alone. Meanwhile, 93% of working Americans have a side hustle, and 44% rely on income from their side hustle to cover bills and make ends meet, according to a recent Insuranks.com survey.

    Getting involved in this entrepreneurial wave could be beneficial for your personal finances.

    Debt-free real estate

    Ramsey is more passionate about real estate than any other asset class. He acquired his real estate license when he turned 18 and was already a millionaire by the time he was 26. However, a brush with bankruptcy left him permanently wary of leverage.

    Ramsey now insists his vast real estate portfolio is owned outright with no mortgages attached.

    Ramsey’s approach isn’t common but his fascination with real estate is understandable. The U.S. residential real estate market is worth $52 trillion in aggregate, according to Zillow. That makes it a larger asset class than equities since the combined value of all public companies is roughly $50 trillion.

    For most ordinary American families, their primary residence is their largest asset, according to analysis by the Pew Research Centre. Like Ramsey, a whopping 39.3% of homeowners own their property without a mortgage, according to the U.S. Census data.

    However, with rising interest rates and home prices, it’s become increasingly difficult for first-time home buyers to buy real estate without taking on a large and expensive mortgage. If you’re looking for exposure to this asset class without purchasing physical property, consider a real estate investment trust such as Equity Residential Properties Trust (EQR), which owns 299 properties consisting of 79,688 apartment units across America’s largest cities.

    Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here’s how you can save yourself as much as $820 annually in minutes (it’s 100% free)

    Mutual funds

    Ramsey has often mentioned his preference for mutual funds that track the broader stock market. Instead of stock picking, he believes a passive investing approach is better.

    This theory has become increasingly popular. Passive investment strategies now have more assets under management than actively invested funds, according to Morningstar. The Vanguard S&P 500 ETF, a low-cost fund that simply tracks the S&P 500 index, has delivered a compounded annual growth rate of 14.51% since 2010.

    Adding some exposure to the stock market through index funds could be another way to accelerate your wealth-creation journey.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • Trump Victory Could Ignite Massive Refinance Boom And Record Home Sales, Experts Say

    Trump Victory Could Ignite Massive Refinance Boom And Record Home Sales, Experts Say

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    Trump Victory Could Ignite Massive Refinance Boom And Record Home Sales, Experts Say

    Many Americans, who are generally not satisfied with today’s economy, are focusing on the 2024 presidential election. The U.S. real estate industry and many other sectors are speculating on the implications of a potential second term for Donald Trump.

    Many economists have considered what a second presidential term under Trump would mean. They’ve provided insight on everything from interest rates and tax cuts to housing prices and inflation.

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    Marty Harlee, president and CEO of First Trust Financial, said he expects Trump to recommend to the Federal Reserve that it lower interest rates to keep the economy moving quickly.

    “If former President Donald Trump should win the upcoming election, we would see another massive refinance boom along with a record number of home sales,” Harlee told GOBankingRates. “Lowering rates would move every other industry upward as well.”

    Dennis Shirshikov, a professor of finance, economics, and accounting at the City University of New York, said that the Trump administration’s economic policies would likely focus on deregulation and tax cuts. These could stimulate economic growth and increase disposable income for many Americans. They could also benefit the housing market by increasing demand for homes.

    “For instance, the Tax Cuts and Jobs Act of 2017, which Trump signed into law during his first term, led to an increase in after-tax income for many individuals and businesses, providing more capital for home purchases and investments in real estate,” Shirshikov said.

    Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.

    With the rising cost of living and affordability among the major concerns many Americans have, housing and construction are being discussed more in the political arena, said Kateryna Odarchenko, a political strategist who also has a real estate license in Maryland.

    “Donald Trump’s 2024 campaign includes several initiatives related to the housing market and construction sector, building on the policies from his previous term,” Odarchenko said.

    During his first term, Trump worked on increasing homeownership rates, extending eviction moratoriums during the pandemic, and proposing the privatization of Fannie Mae and Freddie Mac.

    “These efforts have implications for future homebuyers and the housing market at large,” Odarchenko said. “His administration also introduced tax reforms such as opportunity zones to stimulate investment in underdeveloped areas and capped property, income and sales tax deductions, affecting homeowners differently across the country.”

    Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield.

    If Trump is reelected, the real estate market could suffer. If rates come down, housing prices will increase, and the available supply will decline, Harlee said.

    “In general, interest rates and the housing market always do well with Republicans in office,” Harlee said. “I think it’s safe to say the same would be true if Trump wins reelection.”

    Shirshikov said that deregulation and tax cuts can stimulate economic activity. Still, they can also lead to inflation, which could cause the Federal Reserve to raise interest rates to control it. That may make mortgages more expensive and reduce housing affordability.

    “Trump’s tenure was marked by significant market volatility, partly due to his unconventional approach to policy and communication,” he said. “This unpredictability can create uncertainty in the housing market, causing potential buyers and investors to hesitate.”

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    Get the latest stock analysis from Benzinga?

    This article Trump Victory Could Ignite Massive Refinance Boom And Record Home Sales, Experts Say originally appeared on Benzinga.com

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Commercial property market a waiting game ahead of election

    Commercial property market a waiting game ahead of election

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    Occasionally, it’s a great idea to clear your mind, empty the inbox, and allow your thoughts to be random. Today, dear readers, is such a moment.

    It’s fascinating how the mind can wander through a labyrinth of thoughts, each one seemingly unrelated yet all part of the same intricate web of our daily lives.

    Today, I’m embracing the randomness and sharing a glimpse into the eclectic musings of a commercial real estate broker’s mind.

    Someone famous once opined, they’re only opinions, however, they’re all mine.

    Presidential election

    The political climate is heating up as we approach the next presidential election.

    The decisions made at the polls will ripple through various sectors, including real estate. Policies on taxes, environmental regulations, and economic incentives could dramatically shape the landscape of commercial real estate. It’s a waiting game now, as we brace for the changes that a new administration might bring.

    Interest rates

    Interest rates are the heartbeat of real estate investment. Recently, there’s been a lot of speculation about whether the Federal Reserve will adjust rates again. Lower rates have made borrowing cheaper, fueling investment and development. However, the potential for rising rates could cool the market, making it more challenging for buyers to secure favorable financing terms.

    Owner occupant activity

    There’s a noticeable trend of increased owner-occupant activity. More businesses are opting to purchase their spaces rather than lease. This shift is driven by the desire for long-term stability and control over their work environments. It also reflects confidence in their growth prospects and a strategic move to build equity in their properties.

    Vacation schedule

    Even commercial real estate brokers need to unwind. Planning a vacation amidst a busy schedule can be a challenge, but it’s essential for maintaining balance. Whether it’s a beach getaway, a mountain retreat, or exploring a new city, taking time off to recharge is crucial. This summer, I’m hoping to strike that perfect balance between work and relaxation.

    This summer

    Summer often brings a mix of excitement and uncertainty. The market tends to slow down slightly as people take vacations, but it also presents opportunities. This year, I’m anticipating a few surprises – perhaps an unexpected deal or a new trend emerging. Staying adaptable and ready to seize opportunities is key.

    Embracing the randomness allows for a broader perspective. It’s a reminder that in the midst of our busy lives, taking a moment to reflect on the myriad thoughts and events can be incredibly grounding. Here’s to the journey and all the unpredictability it brings!

    Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.

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    Allen Buchanan

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  • Byzantine Catholic congregation lists Denver church for $1M

    Byzantine Catholic congregation lists Denver church for $1M

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    One of only two Byzantine Catholic congregations in Denver is looking to upgrade.

    Holy Protection of the Mother of God has listed its existing church building at 1201 S. Elizabeth St. with an asking price of $1.1 million.

    That’s $435 a square foot for the 2,600-square-foot structure, which listing agent Matt Harper said a buyer could use as a day care or residence.

    “It’s a very interesting architectural building,” Harper said. “It’s surrounded by nothing but residential. It’s a really unique area.”

    Harper, of Madison Commercial Properties, is also helping Holy Protection find a new home. He said the congregation has grown in recent years and would like to get something in the range of 6,000 to 10,000 square feet.

    “It’s a tough project to do sometimes,” Harper said. “There’s not a whole lot of inventory of churches on the market, and if there are, they are really large or small. It’s tough to find.”

    The church’s existing three-story building sits on the edge of the Belacro and Cory-Merrill neighborhoods and includes three office-like rooms, two bathrooms, a main hall where services are held and a small mezzanine on the third floor. The building dates to 1943, per the listing.

    Harper said he’s already toured other faith-based groups and someone looking to convert the space into a yoga studio.

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    Maia Luem

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  • Dave Ramsey predicts what’s in store for the housing market again after saying he got it right 2 years ago

    Dave Ramsey predicts what’s in store for the housing market again after saying he got it right 2 years ago

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    Dave Ramsey predicts what’s in store for the housing market again after saying he got it right 2 years ago

    After 46 years in the real estate industry, Dave Ramsey is confident about his real estate analysis. In an episode of “The Ramsey Show,” he took a victory lap on a prediction he made about America’s housing market in July 2022: there was “zero chance” of a housing crash.

    Relatively steady home prices, despite higher interest rates, seem to have vindicated Ramsey’s bet.

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    “You were wrong!” he said of his critics, adding, “I freaking know what I’m talking about.”

    Here’s why Ramsey wasn’t convinced by the gloomy outlook on housing.

    Supply crunch

    When the Federal Reserve started raising interest rates in 2022, many were concerned that higher borrowing costs would reduce home sales and prices.

    However, Ramsey claims he was skeptical of these concerns and was instead expecting home prices to remain steady or rise modestly. His thesis was based on simple supply-demand dynamics.

    “When there is a shortage of an item … prices go up,” he said. “That’s basic economics.”

    Read more: These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how

    This theory seems to be vindicated by a report from the National Association of Realtors. Home prices climbed 5.7% over the past year as of February, with the median American home being worth $384,500.

    A combination of rising prices and rising mortgage rates has made home affordability deteriorate. In 2023, only 15.5% of the homes available for sale could be considered “affordable” by a household earning a typical income, according to data analyzed by Redfin.

    Unfortunately, Ramsey says, he doesn’t see an end in sight for this housing crisis.

    Housing forecast

    Factors that led to the current crisis are set to continue, at least for the foreseeable future. Analysis by Realtor.com revealed that the gap between the number of households formed and the number of single-family housing units constructed was 7.2 million in 2023.

    “Prices will go up,” Ramsey predicted. “This is what’s happening with real estate. I promise you, you can look up this [episode] five years from now and you’re going to go ‘god, that old fart was right again.’”

    As for interest rates, Ramsey doesn’t make a firm prediction but advises buyers to focus on prices instead and refinance when borrowing rates go down.

    “Marry the house, date the rate,” he said.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • Donald Trump’s Nine Lives

    Donald Trump’s Nine Lives

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    Produced by ElevenLabs and News Over Audio (NOA) using AI narration.

    Donald Trump loves the musical Cats, and like the titular creatures, the former president seems to have nine lives. Today, in the face of yet another near-death financial experience, Trump got his latest reprieve. An appeals-court panel in New York State reduced the bond he must post in a civil fraud case from more than $464 million to just $175 million.

    Given that the past few months have seen Trump repeatedly use legal procedures to his advantage, drawing out the cases against him in the hope of eventually escaping them, this decision may look like yet another infuriating case of Trump extracting injustice from the justice system. But in fact it is not such an instance, and the reduction is actually quite appropriate.

    Recall the timeline. In mid-February, Justice Arthur Engoron ruled that Trump must pay more than $350 million, plus interest, after he, his sons, and the Trump Organization engaged, according to the judge’s findings, in a years-long pattern of fraud, inflating and deflating the reported value of his assets in order to profit long-term. Trump promptly appealed the ruling, but as a defendant, he must post the value of his judgment while appealing.

    The problem for Trump is that $350 million (which interest soon brought to nearly half a billion dollars) is a huge amount, even for him. He claims to have a net worth in the billions, but that number includes a great deal of assets that aren’t really available. Part of it is nebulous brand value, but a lot is in real estate—value that can’t be quickly accessed. Trump claimed in a deposition in the case that he had more than $400 million in cash and growing. That’s questionable and, even if true, wouldn’t leave him enough to cover the bond.

    Instead, he sought to obtain a bond from a company that specializes in such products. Bonding companies promise courts to cover the cost of a judgment. In return, they usually demand collateral from a client such as Trump—or maybe particularly from Trump, given his long history of not paying his debts. One of them this month posted a bond in the much smaller judgment against Trump for defaming the writer E. Jean Carroll. But Trump was unable to obtain a bond large enough to cover the fraud judgment, even after approaching 30 companies. His lawyers said it was a “practical impossibility” in a filing. (Trump, ever helpful to his own defense, claimed on social media that he actually has more than $500 million in cash.)

    The bond was due today, and Trump got his good news from the court just in time. It is a stay, or pause, not a permanent reduction. For now, the original judgment amount will still be due if Trump doesn’t win on appeal. Today’s outcome is neither a shock nor a travesty.

    Offering temporary relief on the bond makes some sense. Imagine that the panel had not reduced the bond amount. Attorney General Letitia James could have started seizing his accounts or his properties, or else he would have been forced to start selling them. But this is a terrible moment to be selling commercial real estate, because the office market has not recovered from COVID. Beyond that, any buyers would know Trump was in a pinch and be happy to profiteer off him.

    But then imagine that a few weeks from now, Trump won his appeal, convincing the court that Engoron’s finding was incorrect, or that the calculated amount of the penalty was unfair. Trump would have no way to recover the assets he’d been forced to unload at fire-sale prices. It doesn’t take any affection for Trump to see why a court would want to avoid such an outcome, and why—even if Trump would still be filthy rich—this would be unjust punishment.

    The problem for Trump remains winning on appeal. He railed against Engoron in a statement and claimed that the judge was wrong on law, but legal experts told me that they thought Trump would struggle to win his appeal. Engoron’s decision was written in clear detail, as was his calculation of Trump’s penalty, which is based on how much ill-gotten gain Trump extracted from his fraud. “The judge here did a very good job,” Jim Wheaton, a law professor at William & Mary, told me. “Whether you agree or not, the judge very carefully made factual conclusions based on testimony in front of the judge. The judge made credibility decisions based on testimony of witnesses before him.”

    Trump’s instinct for stalling the legal cases against him is pernicious. U.S. courts must find a way to balance the need for procedural protection with the principle that justice delayed is justice denied, and so far they have shown themselves ill-equipped; consider that the U.S. Supreme Court won’t even hear arguments about Trump’s immunity from criminal prosecution until a month from today. But forcing Trump to put a FOR SALE BY OWNER sign out in front of Trump Tower today wouldn’t serve justice, and might actually undermine it. As for Trump, he may just be delaying that outcome—but that’s another problem for him to try to wriggle, cat-like, out of on another day.

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    David A. Graham

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  • Long Island investment sales brokerage expands to West Coast | Long Island Business News

    Long Island investment sales brokerage expands to West Coast | Long Island Business News

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    Plainview-based Silber Investment Properties, a prolific commercial real estate brokerage specializing in investment sales, is expanding with a new office in Southern California. 

    The brokerage firm’s new West Coast base of operations is located at 875 Prospect St. in La Jolla. The new office, in La Jolla’s downtown business district, is staffed with a team of brokers who are relocating from Silber’s Long Island headquarters. 

    “We’re excited to expand our brokerage operations to the West Coast,” Adam Silber, founder and president of Silber Investment Properties, said in a company statement. “La Jolla is a spectacular seaside community of San Diego. I’m excited that these three young men share my vision.” 

    Silber added that team-building efforts with his brokerage staff have been an integral part of the company’s success and that’s reflected in the brokers’ enthusiasm for their relocation to California. 

    “I am excited to spread The Silber Culture to the West Coast, connecting with a new network of real estate professionals,” Michael Turkowitz, vice president of Investment Sales at SIP, now representing the La Jolla office. “It’s a great opportunity to bring our values and expertise to a wider audience and redefine excellence in the industry.” 

    No stranger to markets outside of his home turf, Turkowitz has built a track record of deals in other states, including the disposition of a $10 million retail portfolio in Columbus, Ohio.  He also brokered a record-breaking price per-square-foot on the sale of numerous triple-net-leased quick-service restaurant properties for a private investor in Erie, Penn., according to the company. 

    Blake Benitez, another Silber broker relocating to the new La Jolla office, said he is also eager to establish a presence in the San Diego area’s commercial real estate market. 

    “Being part of the team opening our second branch in La Jolla feels like stepping onto a stage of endless possibilities,” Benitez said in the statement. “It’s not just a new office. It’s our chance to grow, thrive, and create success stories together in the vibrant real estate scene.” 

    Turkowitz and Benitez will be joined in the California office by Stephen Spiegel, junior vice president of Investment Sales at Silber. In the five years since Spiegel joined the firm, the triple-net retail sales specialist has facilitated many deals, including the sale of a $9.8 million shopping center in Howell, N.J. with a fellow Silber associate, according to the statement. 

    While the Silber brokerage firm has been based on Long Island for more than 30 years, it has closed over $5 billion in commercial real estate transactions throughout the country, according to the company. With the opening of its new California office, the firm aims to further grow its client roster in the national investment sales market. 



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    David Winzelberg

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  • Buc-ee’s to Break Ground on New Travel Center in Rockingham County, VA on Jan. 30

    Buc-ee’s to Break Ground on New Travel Center in Rockingham County, VA on Jan. 30

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    Buc-ee’s, home of the world’s cleanest bathrooms, freshest food and friendliest beaver, will break ground on its new travel center in Rockingham County, Virginia, on Tuesday, January 30, 2024 at 2:00 p.m. EST. Buc-ee’s will celebrate the start of construction with a ceremony attended by local leaders. 

    Buc-ee’s Rockingham will be the first Buc-ee’s location in Virginia. 

    Located at SEC of Friedens Church Road and I-81, Buc-ee’s Rockingham County will occupy 74,000 square feet and offer 120 fueling positions. Buc-ee’s favorites including Texas barbeque, homemade fudge, kolaches, Beaver Nuggets, jerky and fresh pastries will all be available. Visitors will find thousands of snack, meal and drink options, as well as the same award-winning restrooms, cheap gas, quality products and excellent service that have won the hearts, trust and business of millions in the South for over 40 years.

    Attendees of the Buc-ee’s Rockingham groundbreaking ceremony will include Dewey L. Ritchie, Rockingham County Supervisors Chairman; Leila Longcor, District 4 Supervisor; Stephen King, Rockingham County Manager; and Supervisors Rick Chandler, Sallie Wolfe-Garrison, and Joel Hensley. Retiring after 35 years of service to his community and District 4, Supervisor Bill Kyger will also attend.

    Founded in Texas in 1982, Buc-ee’s operates 47 stores across Texas and the South. Since beginning its multi-state expansion in 2019, Buc-ee’s has opened travel centers in Alabama, Florida, Georgia, Kentucky, South Carolina, Missouri, and Tennessee. 

    “One of the prettiest roads we could ever hope for, I-81 is full of folks seeking fun and all that Virginia has to offer,” said Stan Beard of Buc-ee’s. “We are the perfect pitstop for their road-trips and for the amazing people of Rockingham County.” 

    Throughout the project, Buc-ee’s corporate development team will continue to work closely with local partners. Buc-ee’s Rockingham will bring more than 200 full-time jobs to the area, with starting pay beginning well above minimum wage, full benefits, a 6% matching 401k, and three weeks of paid vacation.

    General Photos Courtesy of Buc-ee’sCLICK HERE

    About Buc-ee’s
    Buc-ee’s is the world’s most-loved travel center. Founded in 1982, Buc-ee’s now has 34 stores across Texas, including the world’s largest convenience store, as well as 13 locations in other states. Buc-ee’s is known for pristine bathrooms, a large amount of fueling positions, friendly service, Buc-ee’s apparel and fresh, delicious food. Originally launched and still headquartered in Texas, Buc-ee’s has combined traditional quality and modern efficiency to redefine the pit stop for their customers. For more information, visit www.buc-ees.com.

    Source: Buc-ee’s

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  • Buc-ee’s to Break Ground on New Travel Center in Brunswick, Ga on Jan. 29

    Buc-ee’s to Break Ground on New Travel Center in Brunswick, Ga on Jan. 29

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    Buc-ee’s, home of the world’s cleanest bathrooms, freshest food and friendliest beaver, will break ground on its new travel center in Brunswick, Georgia, on Monday, January 29, 2024 at 10:00 a.m. EST. Buc-ee’s will celebrate the start of construction with a ceremony attended by local leaders. 

    Buc-ee’s Brunswick will be the third Buc-ee’s location in Georgia. 

    Located at 7156 Hwy 99 | 1-95 & State Hwy 99, Brunswick GA, Buc-ee’s Brunswick will occupy 74,000 square feet and offer 120 fueling positions. Buc-ee’s favorites including Texas barbeque, homemade fudge, kolaches, Beaver Nuggets, jerky and fresh pastries will all be available. Visitors will find thousands of snack, meal and drink options, as well as the same award-winning restrooms, cheap gas, quality products and excellent service that have won the hearts, trust and business of millions in the South for over 40 years.

    Attendees of the Buc-ee’s Brunswick groundbreaking ceremony will include Thomas “Wayne” Neal, Chairman, Glynn County Board of Commissioners; Buddy Carter, US Representative; Ann R. Purcell, GDOT Board Vice Chair; and Ryan Moore, President, Golden Isles Development Authority.

    Founded in Texas in 1982, Buc-ee’s operates 47 stores across Texas and the South. Since beginning its multi-state expansion in 2019, Buc-ee’s has opened travel centers in Alabama, Florida, Georgia, Kentucky, South Carolina, Missouri, and Tennessee. 

    “Brunswick is a natural stop between our Florida and South Carolina locations on a stretch of interstate near the beautiful Georgia coastline,” said Stan Beard of Buc-ee’s. “The community has welcomed us with open arms, and we are excited to finally get started here.” 

    Throughout the project, Buc-ee’s corporate development team will continue to work closely with local partners. Buc-ee’s Brunswick will bring more than 200 full-time jobs to the area, with starting pay beginning well above minimum wage, full benefits, a 6% matching 401k, and three weeks of paid vacation.

    General Photos Courtesy of Buc-ee’sCLICK HERE

    About Buc-ee’s
    Buc-ee’s is the world’s most-loved travel center. Founded in 1982, Buc-ee’s now has 34 stores across Texas, including the world’s largest convenience store, as well as 13 locations in other states. Buc-ee’s is known for pristine bathrooms, a large amount of fueling positions, friendly service, Buc-ee’s apparel and fresh, delicious food. Originally launched and still headquartered in Texas, Buc-ee’s has combined traditional quality and modern efficiency to redefine the pit stop for their customers. For more information, visit www.buc-ees.com.

    Source: Buc-ee’s

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  • 'They're not super forthcoming': This dentist says don't ask if your oral health provider takes your insurance – you could end up paying $1,200 for a root canal. Do this instead

    'They're not super forthcoming': This dentist says don't ask if your oral health provider takes your insurance – you could end up paying $1,200 for a root canal. Do this instead

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    ‘They’re not super forthcoming’: This dentist says don’t ask if your oral health provider takes your insurance – you could end up paying $1,200 for a root canal. Do this instead

    Have you ever wondered why trips to the dentist can be so expensive, even if you have insurance? It’s not because of inflation — it might be something you’ve said.

    In a recent viral TikTok, Dr. Brady Smith responds to a commenter who asked why a root canal cost $1,200 over and above the portion of the bill covered by insurance.

    Don’t miss

    The Washington-based dentist says that the commenter’s bill probably got so high as a result of a straightforward question: “Do you take my insurance?”

    “It’s a bad question,” Brady says. What you really want to ask, he suggests, is “Are you in-network with my insurance?”

    “You will pay more every time at an out-of-network office, and sometimes that’s not fully transparent,” Brady says.

    He goes on to say: “It’s one of the less transparent yet common practices of many dental offices that are out-of-network.”

    Asking the right question, according to the good doctor, can mean paying $200 or $300 for a root canal instead of $1,200.

    Here’s how to ensure you don’t get drilled by extra fees at the dentist office.

    Know your network

    It’s not enough merely to know whether your dental office will accept your insurance plan.

    If the office accepts your plan but isn’t part of your insurance company’s provider network, Brady says, “they can bill the insurance company but they can tack on literally any amount that they want to.”

    This is what leads to a situation where a patient pays $1,200 out of pocket for a root canal that’s also covered by insurance.

    “They’re not super forthcoming in many situations with that information,” Brady adds.

    Insurance companies often contractually require the dental offices in their networks to cover a full 80% of dental fees, leaving the patient to cover only 20%, known as the “co-pay,” out of pocket.

    If you have employee-sponsored insurance, ask your HR rep to go through your dental benefits with you or call up your insurance company yourself to make sure you know what health providers are in-network and exactly what is and isn’t covered for you and your family.

    Read more: Owning real estate for passive income is one of the biggest myths in investing — but here’s how you can actually make it work

    Don’t hoard your insurance

    Most insurance plans run out by the end of the year. So even though you may not want to use every dentist dollar in January, you’re leaving money on the table by not using your dental benefits at all.

    Not only are you losing money in the long term, but also in the short term. Those who skip dental visits may not realize they have serious oral health problems like gingivitis or cavities. These not only cause horrible mouth issues but also can extend to the rest of your body. For instance, the National Institute on Aging found that gum disease is linked to dementia.

    By the time you get dementia, you may no longer have an employee benefits plan because you’ll be retired. And don’t think that Medicare will save you. The agency website says that it doesn’t cover “most” dental care.

    So unless you have a very large emergency fund, your lack of dentist visits can create major unexpected health care costs, now and in the future.

    So take advantage of your dental benefits while you have them. It’ll keep you smiling long into your old age.

    Use your health savings account

    If you’ve used up all your benefits, but still need more dental work done, consider using your health savings account (HSA).

    An HSA functions as a savings account for health-related expenses, according to the U.S. government website Health Insurance Marketplace. Though some employees offer HSAs, you can qualify as an individual. The IRS oversees the program to ensure that you have a high-deductible health plan that qualifies you for an HSA.

    The IRS has increased the 2024 maximum deductibles for HSAs to $4,150 for individuals and $8,300 for families.

    Even if you don’t end up needing your HSA, you can invest the money from it. So either way, it’s a win-win for your mouth and your wallet.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • Reaping The Rewards In Real Estate Investments

    Reaping The Rewards In Real Estate Investments

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    When it comes to real estate investing, taking a long-term approach has key benefits. The most successful investors I’ve dealt with in my career have built their portfolios over time. While there could be challenges to acquiring and refinancing assets in today’s market, there are still opportunities to be had. If you’re an investor who has already closed on transactions, you could leverage your existing portfolio. If you’re new to the game, you might opt to focus on the first deal, after which you’ll gain some credibility and can begin to build your track record.

    Once you’ve held a piece of property for some time, there could be several options to pursue, depending on your business model and pool of investors. You might decide to hold the place, refinance it, or sell. As you make transactions, you’ll want to let others know. Spreading the word about your real estate investment activity can lead to more connections.

    Building a Portfolio

    Most likely when you acquire a property, you’ll have a plan in place which will dictate the long-term objectives. Your partner and other investors may be interested in holding the property, or they might be looking to move on after several years. If others take their return and shift funds elsewhere, you’ll have to decide whether you can maintain the place on your own and still get the return you want.

    Refinancing could be brought into the discussion, although in today’s market, this step may not enable investors to get the same return on equity that they could take out in the past. In the past, refinancing could have brought a lower interest rate and enabled investors to take cash out from the equity. However, as debt service coverage ratios have become more conservative, along with the proceeds, in some cases a refinance to take out cash may not be possible. It could be a time to think about selling to get a return on equity.

    If holding the property or refinancing won’t provide your desired return, you might consider selling the place. If you do, you’ll want to work with a knowledgeable investment sales broker. Look for someone with a laid-out marketing strategy who will share your opportunity with a broad audience. Check that the broker has a strong track record and a reasonable timeline in place based on the market conditions.

    As you think about selling, you’ll want to talk to your accountant about the tax implications. They can help you understand what your potential capital gains could be. They’ll also look at taxes from a federal and local level. Knowing what your after-tax scenario will be may make it easier to determine what you want to do with the asset.

    Section 1031 of the IRS tax code allows you to exchange one property for another of like-kind without having to pay capital gains tax. Often called a 1031 exchange, there are rules you’ll have to follow for this process, including acquiring another property (or properties) as an investment and using a qualified intermediary to hold your funds in escrow. You’ll typically have 45 days after closing on the first property to identify the next acquisition (or acquisitions), and you’ll need to close on them within 180 days of closing on the first place.

    Spread the Word

    As you acquire real estate assets, you’ll want to let others know of your activity. Some real estate professionals who have been guests on my podcast “The Insider’s Edge to Real Estate Investing” do an incredible job of promoting the properties they are closing. These include Steve Kachanian from Klosed, and Jeffrey Znaty and George Giannopoulos from Kings Capital.

    Spreading the word about your track record brings several benefits. Primarily, this strategy can help you stay top of mind for investment sales brokers. These professionals are often very busy with listings that they’re trying to sell. If you’re demonstrating that you’re active, brokers will be more in tune with what type of asset you’re interested in. The adage that “deals lead to more deals” is certainly true.

    Certainly, acquiring an initial property takes time and effort. After crossing that hurdle, you can think about building your real estate portfolio. As you move forward, you’ll want to develop a strategy around cultivating your brand and reaching your target audience. Let others know what you’re doing and what you’re interested in, and you’ll likely find an increasing number of opportunities for your next investments.

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    James Nelson, Contributor

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  • How CRE Owners Can Prepare To Recover From Climate-Related Emergencies

    How CRE Owners Can Prepare To Recover From Climate-Related Emergencies

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    As the frequency and severity of extreme weather events, such as hurricanes, floods and wildfires continue to rise, it’s more critical than ever that commercial real estate (CRE) owners and operators prepare by developing proactive, resilient climate-related emergency strategies.

    While addressing climate change requires partnerships and coordinated action, front-end planning for severe weather and other climate-related emergencies can also benefit from outside experience and perspective, putting owners in a better position to reduce damage, bounce back quickly, protect their teams and tenants and potentially save lives when things go from bad to worse.

    Conduct a site-specific risk assessment

    Knowing how to respond in a climate emergency requires first understanding a property’s unique characteristics and vulnerabilities—more specifically, the property type and location. After all, generic plans won’t anticipate all the potential scenarios for both a 50-story office building with controlled access and a shopping mall that is designed to welcome in the general public. With different uses being present throughout properties, knowing how to manage each area is essential for creating a thorough emergency response plan.

    Among the questions to consider: Is the property primarily an office, retail, industrial or medical facility? What secondary uses does the property have that may affect emergency response? What are the known direct geographical climate risks (hurricanes, tornadoes, wildfires, excessive heat or cold) and indirect impacts from ancillary locations (smoke, droughts, floods)?

    Identifying the specific vulnerabilities of a property and its location allows owners to tailor an appropriate plan for when disaster strikes. This may involve incorporating measures such as flood barriers for properties located in flood-prone areas or wildfire prevention strategies for those in fire-prone regions, leveraging historical weather data and local climate projections to formulate an effective plan.

    Develop a climate emergency response plan

    After assessing the risks, property owners must develop a comprehensive plan that outlines the necessary steps before, during and after climate-related emergencies. The plan must encompass various scenarios, including evacuation procedures, communication protocols and resource allocation. Collaborating with local emergency services and authorities can help create a more efficient response plan and facilitate access to real-time weather updates, early warning systems and evacuation routes in the event of an emergency. Regular drills and training sessions ensure that all building personnel are well prepared to handle emergencies effectively.

    Create a front-end checklist

    Now that you’re ready to put your plan into action, here are three things you can do to ensure building tenants, staff and other on-site personnel are on the same page:

    1. Ensure tenants are trained and the plan is accessible.

    The value of any emergency response plan lies in its efficiency during a crisis, requiring that everyone is well versed in the plan’s specifics and knows what to do in various scenarios. Regular training and drills are indispensable to test the plans’ efficacy, help employees understand their roles during emergencies and ensure a coordinated response. Digital solutions, such as mobile apps or web-based platforms, can provide instant access during a crisis. Keep a condensed version of the plan for quick reference with physical binders or printed copies strategically placed in key locations as a backup in case of power failures or when digital access is not feasible.

    2. Make sure tenants and staff have everything they need.

    It’s impossible to anticipate the severity and length of a climate-related emergency, so ensure the property is stocked with essentials and consider what those on site might need during a crisis. Is there plywood or storm shutters at the property? Is there enough food and water for employees in case the team decides to stay—or if deteriorating weather conditions strand tenants?

    3. Confirm that facilities are up-to-date.

    Sometimes the most damage comes from mundane oversights. Assess the structural integrity of buildings, drainage systems and utility installations. Routine maintenance can pay dividends, such as ensuring trees are trimmed throughout the summer to prevent clogged roof drains that contribute to building collapse. Elevated foundations or flood barriers can help offset risk in flood-prone areas. While not specifically part of emergency preparedness, routine property management tasks are essential to keeping the building in top shape for any future emergency.

    Invest in sustainable practices and infrastructure

    To truly climate-proof commercial properties, owners and operators must be willing to invest in climate-resilient infrastructure. Prioritize sustainability measures that reduce a properties’ impact on the environment and mitigate climate risk, including upgrading existing buildings to meet higher construction standards, utilizing climate-resistant materials and integrating innovative technology to enhance resilience.

    Green roofs and rainwater harvesting systems, for example, can help mitigate risk by managing excessive rainfall and reducing stormwater runoff. Nature-based solutions, like permeable pavements and green spaces, can absorb excess water. Energy-efficient technologies, such as LED lighting, smart HVAC systems and solar panels not only reduce carbon emissions, but also lower operational costs over time. Renewable energy sources, such as wind or geothermal, offer dual benefits—mitigating climate change and providing a reliable energy supply during emergencies when conventional power systems might be compromised.

    Adopting water-saving fixtures and landscaping practices can significantly decrease water consumption, particularly in regions vulnerable to droughts, benefiting the environment and the bottom line. Additionally, promoting waste reduction and recycling initiatives within commercial properties contributes to a greener, more sustainable future.

    Prepare now for a climate-resilient future

    Climate change poses unprecedented challenges to owners and operators of commercial real estate properties. But there are ample opportunities to prepare now for a more climate-resilient future. Taking proactive steps with comprehensive planning and preparedness is not only essential for protecting assets and ensuring business continuity but also safeguards the well-being of communities during times of crisis.

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    Mark Zettl, Contributor

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  • The Entrepreneur’s Guide to Building Wealth Through Real Estate | Entrepreneur

    The Entrepreneur’s Guide to Building Wealth Through Real Estate | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Real estate, as an asset class, has long been heralded as a critical pillar of wealth creation for entrepreneurs. It is a tangible investment avenue, and its potential for consistent appreciation and income generation makes it an excellent wealth-building tool.

    According to the U.S. Federal Reserve’s 2020 Survey of Consumer Finances, real estate comprises about 30% of American families’ total wealth, demonstrating its significant role in wealth accumulation. In essence, real estate investment represents an accessible pathway for entrepreneurs to achieve financial prosperity — and here are six ways to make money in the industry.

    Related: How to Start Investing in Real Estate With as Little as $5,000

    1. Investing in rental properties

    One of the most conventional ways to create wealth through real estate is by investing in rental properties. The potential for steady cash flow from tenants provides investors with a continuous income stream, which is a form of passive income. For example, consider a property purchased for $200,000. If this property is rented out for $1,500 per month, the entrepreneur can potentially yield an annual return of $18,000, resulting in a 9% cash-on-cash return.

    Successful real estate investor, Robert Shemin, started with a single property and has now built a portfolio of over 400 properties. His estimated net worth is reportedly over $18 million, thanks in large part to his investment in rental properties.

    2. Real estate appreciation

    Property appreciation is another way real estate builds wealth. Over time, properties tend to increase in value — and if an investor holds onto a property long enough, they can sell it for much more than the original purchase price.

    Statistics from the U.S. Census Bureau show that the average price of a home in the United States was about $30,600 in 1940 (after adjusting for inflation). In contrast, by 2020, the average price had escalated to over $300,000, a tenfold increase. The renowned business magnate, Donald Bren, capitalized on this by acquiring a wide array of properties. Today, with a net worth estimated at $15.3 billion, he is one of the wealthiest real estate investors in the world.

    3. Real Estate Investment Trusts (REITs)

    For entrepreneurs who prefer not to directly manage properties, REITs offer a way to invest in real estate without the burdens of property management. REITs, essentially, are companies that own and operate income-producing real estate. As per the National Association of REITs, the compound annual return for equity REITs from 1972 to 2020 was 9.72%, outperforming the S&P 500’s 7.42% return over the same period.

    Investing in REITs is as simple as purchasing shares of a publicly traded company. You can buy shares of a REIT through a broker, just as you would with any other publicly traded stock. There are also mutual funds and ETFs (Exchange-Traded Funds) focused on REITs that provide further diversification. By making real estate investing accessible to a broader audience, REITs open a pathway to real estate’s wealth-building opportunities without requiring extensive capital or expertise in property management.

    An example of an entrepreneur who achieved remarkable wealth through REITs is Sam Zell, founder of Equity Residential. Today, Zell boasts a net worth of approximately $5.5 billion, with a large portion derived from his REIT investments.

    Related: 5 Proven Steps to Become a Real Estate Millionaire, According to an Investor

    4. Flipping properties

    House flipping involves buying a property, renovating it and selling it at a profit. Although this requires expertise and hard work, the potential for high returns makes it an attractive option for entrepreneurs.

    For example, according to ATTOM Data Solutions, the average gross profit for a flipped house in 2020 was $62,300, demonstrating the lucrative potential of this real estate strategy. Christina Anstead and Tarek El Moussa, stars of HGTV’s “Flip or Flop,” exemplify this success. They have built a multimillion-dollar business through property flipping, further highlighting the wealth creation potential in this approach.

    5. Investing in commercial real estate

    Commercial real estate (CRE) includes shopping centers, offices, warehouses and apartments. Generally, these properties yield a higher return than residential real estate due to longer lease contracts and higher rental rates.

    Investing in CRE allows entrepreneurs to diversify their portfolios and minimize risks. A report by CBRE showed that the average annual return for CRE was 9.5% between 2000 and 2018. Though it requires a larger initial investment, the high yield can lead to substantial wealth accumulation.

    Take the case of entrepreneur Rick Caruso, founder of Caruso, a company specializing in creating extraordinary retail, dining and lifestyle experiences. Through strategic investments in CRE, particularly in high-end retail centers, Caruso has grown his net worth to an estimated $4 billion.

    6. Developing raw land

    Another viable way of wealth creation through real estate is land development. Entrepreneurs can purchase raw, undeveloped land, then increase its value by obtaining the necessary permits and building infrastructure like roads, sewage systems and utilities. Once the land is developed, it can be sold to homebuilders or commercial developers at a profit or it can be utilized to construct properties, thus adding another income stream.

    Land development can be highly profitable, but it requires a keen understanding of local zoning laws, planning regulations and market conditions. Entrepreneurs also need significant upfront capital and patience, as this process can be time-consuming.

    Related: Why Real Estate Investment is the Ultimate Adventure for Entrepreneurs

    Reaping the rewards of your investment choice

    The avenues to wealth creation through real estate are vast and varied. Whether an entrepreneur opts for rental properties, capitalizes on appreciation, invests in REITs or decides to flip houses, real estate offers incredible potential for wealth accumulation. While success demands research, financial acumen and sometimes patience, real estate investment remains a proven strategy for entrepreneurial wealth creation. As illustrated by the above examples, those willing to invest the time and effort can reap considerable financial rewards, ensuring their journey towards sustainable wealth.

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    Ari Chazanas

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  • Why Working With A Mortgage Broker Is Essential In Today’s Market

    Why Working With A Mortgage Broker Is Essential In Today’s Market

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    Real estate investors looking to secure debt could face significant challenges due to today’s market conditions. As I mentioned in a previous article, bank failures and rising interest rates have led to a tighter lending environment. Borrowers may need to search far and wide for the financing they need and bring more of their own money to the table. Resources such as a local bank might not be as readily available as they were in the past.

    Given these trends, working with a mortgage broker is a crucial step when securing financing for a real estate investment. These professionals serve as an intermediary between borrowers and lenders in the commercial space. If you don’t have a mortgage broker already, you’ll want to tap your network to find one as you build the capital stack and prepare to make an offer on a property.

    The Advantages of a Mortgage Broker

    Rather than going out on your own or relying on your own data, you’ll be able to gather more options and insight with a mortgage broker. These professionals operate in the lending environment day in and day out, which can give them an inside edge into what sources might be available. They’ll often know who the active lenders are, and those players could extend beyond traditional banks. Mortgage brokers may be aware of private lending sources and have insight into activity related to insurance companies and the commercial mortgage-backed security (CMBS) market.

    These professionals can help you match the right debt for the deal. It can be valuable to have several choices available when securing debt to avoid getting into a tight financial position. If you’re trying to lock in and commit to a purchase price and aren’t able to get a commitment from a lender until 60 days later, the rates may have changed by then. The lender could come in and appraise the property, and then reduce the loan proceeds. As such, you’ll want to have backup plans in place so you can fall on them if needed.

    As you’re looking at a property, a mortgage broker may be able to advise you on how to reposition it to make the proceeds more favorable. In some cases, a mortgage broker might have an earn-out provision. If you improve the performance of the property, you may be able to increase the loan. A good mortgage broker should be able to negotiate these for you.

    Working with a Mortgage Broker

    Before you start bidding, you’ll want to talk to a mortgage broker to get an idea of the available financing for your investment. These professionals can evaluate your position and help determine if you are bankable. You’ll also be able to see what you might have to bring to the table in terms of equity. Mortgage brokers will often charge 1% of the loan, though you’ll want to discuss fees so you know what to expect.

    As you work together, a mortgage broker can help you sort through whether lenders will make you personally guarantee a loan. For real estate investments, non-recourse is always best, as you won’t be putting your own assets at risk for the loan. However, there could be cases in which you are asked to personally guarantee a loan until certain conditions are met, such as a lease out on the property. A mortgage broker can help you prepare and maneuver these steps, and set up a plan for special circumstances, such as a major tenant vacating a property.

    Given the current lending conditions, you may find that traditional go-to lenders are not in a position to offer financing. This further fosters the need to work with a mortgage broker to secure debt. They’ll understand the lending beat and how it relates to your chosen asset class. Ultimately, a great mortgage broker can help you fill out the capital stack, enabling you to get a solid picture of the debt and equity layers in a deal.

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    James Nelson, Contributor

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  • The Limits Of Caveat Emptor In Real Estate Sales

    The Limits Of Caveat Emptor In Real Estate Sales

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    Traditionally, when a property owner agreed to sell real property, it was up to the buyer to check out the real property as much as they wanted. If the buyer liked what they found, they could go ahead and buy the real property. If they didn’t, they could go buy other real property instead. The buyer bore the burden of understanding the real property being sold, including whatever deficiencies it had. If the buyer acquired the property and later found issues or problems with it, those were the buyer’s problem. The buyer ordinarily wouldn’t have a claim against the seller.

    Those ancient principles of “caveat emptor” (let the buyer beware) have eroded significantly over the years in real estate. State legislatures have tried to improve the residential sales process by requiring sellers to disclose certain information. In commercial real estate sales, buyers typically demand that sellers provide a package of representations and warranties, assurances about the property. Those assurances mostly relate to factual matters a buyer can’t readily check out for itself. A seller can’t just shrug its shoulders and tell the buyer to make up its own mind about the property without involving the seller.

    Even with those changes in law and practice, caveat emptor still retains some vitality in the modern world. It often remains the general backdrop for real estate purchases, to the extent that disclosure laws and representations and warranties don’t apply. A typical purchase and sale contract will still say that the seller doesn’t make any assurances at all about the property, except for any mandated residential disclosures and any representations and warranties negotiated in commercial sales. Subject to those exceptions, standard contract language requires any buyer to acknowledge that it isn’t relying on the seller for anything; has made its own investigations of the property; and accepts the property totally “as is.”

    That typically makes sense because the property is what it is. The seller is typically selling something that’s “used.” It’s not perfect. And a buyer can in fact dig around as much as it wants, analyze the property on offer, and decide whether the buyer likes whatever is being sold.

    The courts do generally still enforce “caveat emptor” concepts in contracts, subject to the exceptions described above. A recent New York case demonstrated another exception that will sometimes apply. Although the facts of the case are sparse, it appears the seller of residential real estate may have given limited disclosures to the buyer, none of which applied to the problems the buyer later discovered.

    After the closing, the buyer figured out that the seller had, according to the court, “actively concealed” water damage at the property by installing fresh new wood over areas in the house where the wood had rotted. By taking affirmative steps to conceal problems with the property, the court decided that the seller may have committed fraud. That was true even though the contract contained the usual “caveat emptor” language and the seller hadn’t given any assurances about the wood at issue. According to the court, the seller’s efforts to hide the rotten wood “might have thwarted the plaintiff’s efforts to fulfill their responsibilities imposed by the doctrine of caveat emptor.”

    The court issued its decision early in the litigation process, so it’s not a final determination. The court did allow the litigation to proceed, concluding that the caveat emptor language in the contract didn’t necessarily save the seller from possible liability.

    Although caveat emptor remains mostly alive and well, subject to the exceptions described above, the case teaches that an unhappy buyer might still recover damages from a seller that affirmatively conceals bad facts about the property. As a practical matter, and regardless of what a contract says, sellers should think twice before they make changes to a property that might make it appear better than it really is.

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    Joshua Stein, Contributor

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  • Larry Summers warns U.S. economy is still ‘very, very hot’ with ‘pockets of distress’ in commercial real estate

    Larry Summers warns U.S. economy is still ‘very, very hot’ with ‘pockets of distress’ in commercial real estate

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    Former U.S. Secretary of the Treasury Lawrence Summers doesn’t think the U.S. fight against inflation is over yet.

    The U.S. economy is still “very, very hot,” he said on Monday at the Caixin Asia New Vision Forum in Singapore, where he attended via video link, according to Bloomberg

    “The United States is, today, an underlying 4.5-5% inflation country,” he said.

    Summers is a longtime hawk on inflation, arguing that the massive U.S. stimulus during the COVID pandemic would eventually lead to higher prices throughout the economy. He also argued that low unemployment and high wage growth were increasing prices, suggesting that cooling the economy and getting prices under control might require a 6% unemployment rate.

    The Federal Reserve came around to Summers’ hawkish view, and the U.S. central bank has increased interest rates at every one of its monthly meetings since March 2022. 

    The Fed will meet later this week to determine whether to change interest rates again. Most economists believe that the U.S. central bank will pause its interest rate hikes this month, notes Reuters, as rate hikes helped spur the banking crisis earlier this year, leading to a tightening in credit markets. 

    U.S. inflation continued to decline in April, with prices increasing 4.9% year-on-year, down significantly from a peak of 9% almost a year ago. Yet core inflation, which excludes volatile food and energy prices, remains elevated at 5.5% year-on-year. Core inflation hasn’t come in below 4.5% since September 2021.

    The Bureau of Labor Statistics will release its inflation figures for May on Tuesday morning. The Federal Reserve Bank of Cleveland projects a 4.2% year-on-year increase in the consumer price index for May, and a 5.3% increase in core inflation.

    ‘Pockets of distress

    Summers is also skeptical of the U.S.’s ability to achieve a hoped-for soft landingwhich he called the “triumph of hope over experience” on Monday. (A “soft landing” is when a country is able to get inflation under control without sparking a recession.)

    The former Treasury Secretary said he saw “pockets of distress” in commercial real estate, according to Bloomberg

    The shift to working-from-home is severely testing owners of office buildings, as tenants scale back their footprints due to having more remote employees. Increasing interest rates will also lead to a spike in loan payments for borrowers, sending some into default.

    A collapse in commercial real estate would then hit lenders, mostly small and medium-sized banks. Lenders with less than $250 billion in assets provide roughly 80% of commercial real estate lending, according to a recent analysis by Goldman Sachs. Banks are also lending less, which puts more downward pressure on property values.

    “What’s happening in the office sector is apocalyptical,” Fred Cordova, founder of real estate brokerage Corion Enterprises, previously told Fortune

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    Nicholas Gordon

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  • 4 Location Factors To Consider For Real Estate Investments

    4 Location Factors To Consider For Real Estate Investments

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    The southern and western regions of the U.S. hold the highest growth rates, per data from U.S. Census Bureau, with cities in Texas, Florida, and Arizona topping the list. Workers searching for an all-around great place to reside might find spots like Green Bay, Wisconsin, and Huntsville, Alabama, appealing, as these communities rank first and second in the U.S. News & World Report’s list of Best Places to Live. Raleigh and Durham, North Carolina, followed by Boulder, Colorado, come in close behind.

    When it comes to real estate investing, statistics like these can serve as a starting point—yet there’s much more legwork to carry out when choosing the best spot. The adage “location, location, location” still rings true today. It’s one of the most important aspects of the game, and the features surrounding the property you acquire will play a key role in its current and future values. As such, you’ll want to carefully note the landscape before making a bid. Use the following guidelines to help you begin your search on the right foot.

    Choose Familiar Territories

    If you’ve lived in the same neighborhood for the past decades, you’re likely in tune with its best features—along with areas that could be improved. Use this insight as a competitive edge. As you walk around, check for signs that indicate missing features. Is there room for another coffee shop on your block, or is the area saturated with cafes? Are residents having trouble finding housing close to downtown? The answers could help you spot opportunities to invest in a property or change an existing location to better suit the neighborhood’s needs.

    Learn The History

    Research how properties in the area you’re considering have been used in the past. Why were they first built? How have they changed over the years? Also review zoning codes or tap an expert who knows the local laws. The exercise will help you think about the possibilities for upgrades or renovations, along with understanding your limitations. There might be rent regulations in place, for instance, or codes that inhibit the way a structure can be modified.

    Meet The Locals

    When I started on the real estate scene 25 years ago, I was assigned a territory in the Chelsea neighborhood of New York City. I spent the following three months studying it and getting to know the people there. I talked to everyone from the small business owners to the building superintendents and the residents. I soon learned the spaces were set for a transformation: seemingly overnight, art galleries started popping up and replaced the flea markets that had been there. The new construction attracted additional amenities, including businesses and the nightlife scene, all of which presented incredible options for investors who were in the know and got in at the right time.

    Check For Trends

    Changing neighborhoods could present strong opportunities. In New York City, four new subway stations are opening in the Bronx. Think about the real estate potential around those stops. Retail values are set to increase, as shops and restaurants cater to the influx of foot traffic. The opposite can be true too: in areas where residents are leaving or offices sit empty, properties may not be considered as valuable.

    When considering drivers for an area, check for tenant relocations and expansions. Tesla
    TSLA
    moved its headquarters from California to Texas in 2021. Amazon
    AMZN
    opened its initial phase of HQ2 in Arlington, Virginia, in May 2023. The company predicts the investment will generate 25,000 direct jobs by 2030 and support thousands more indirect positions in the region. Shifts such as these will bring new employment opportunities to the market.

    Smart investors look not only at population growth, but also future jobs. Considering which cities have the most job postings can be an indicator of a growing market. Track new store openings too. Companies like Starbucks
    SBUX
    spent considerable time and resources to decide where to launch a new branch. Identify which co-tenants you’d like to have and follow them. As Wayne Gretsky famously said, “Skate to where the puck is going!”

    When it comes to choosing a location, there’s little that tops getting out and walking the neighborhood. Use the intel you gather along the way to build your business plan. You can then share your idea with your partners or team and take the next steps forward. If you time it right, you could get a great deal in a prime location that provides long-term returns.

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    James Nelson, Contributor

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  • Buc-ee’s to Debut New Travel Center in Sevierville, TN on June 26

    Buc-ee’s to Debut New Travel Center in Sevierville, TN on June 26

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    Buc-ee’s, home of the world’s cleanest bathrooms, freshest food and friendliest beaver, will unveil its newest travel center in Sevierville, Tennessee, on Monday, June 26, 2023. Doors will open to the public at 6 a.m. ET, and a ribbon-cutting ceremony will follow at 11:00 a.m. ET

    When it debuts, Buc-ee’s Sevierville will be the largest travel center in the world. The store’s 74,000-square-foot floor plan will remain the biggest Buc-ee’s until that record moves back to Texas, where construction is currently underway on a 75,000-square-foot location in Luling, TX. 

    Located at exit 407 off Interstate 40 and Winfield Dunn Parkway, Buc-ee’s Sevierville offers 120 fueling positions outside its store with thousands of snack, meal and drink options for travelers on the go. The new travel center also features a state-of-the-art car wash (coming soon), along with the same award-winning restrooms, cheap gas, quality products and excellent service that have won the hearts, trust and business of millions in the South for 40 years. Buc-ee’s favorites, including Texas barbeque, homemade fudge, kolaches, Beaver Nuggets, jerky and fresh pastries, are all available as well.

    State and local leaders attending the ribbon-cutting ceremony will include Sevierville Mayor Robbie Fox, Sevier County Mayor Larry Waters, EBCI Principal Chief Richard Sneed, and many other partners and officials who helped Buc-ee’s bring the project to Sevierville. 

    After the opening of Buc-ee’s Sevierville, Buc-ee’s will operate 46 stores across Texas and the South. Buc-ee’s Sevierville is the second Buc-ee’s location in Tennessee, joining Buc-ee’s Crossville, which debuted on June 27, 2022. Since beginning its multi-state expansion in 2019, Buc-ee’s has opened travel centers in Alabama, Florida, Georgia, Kentucky, South Carolina, and Tennessee. Buc-ee’s recently announced the brand is headed West with store groundbreakings in Colorado and Missouri. The first Virginia location was announced in March of this year.  

    “Buc-ee’s Sevierville, located at ‘The 407,’ is nestled in the gateway to Pigeon Forge, Dollywood, Gatlinburg, and of course, the Great Smoky Mountains National Park,” said Stan Beard of Buc-ee’s. “We are thrilled to join such a beautiful community that has long since been a destination for travelers from around the world.”

    Buc-ee’s Sevierville will bring at least 200 new full-time jobs to the area with starting pay well above minimum wage, full benefits, a 100% matching 401k up to 6%, and three weeks of paid vacation. 

    About Buc-ee’s
    Buc-ee’s is the world’s most-loved travel center. Founded in 1982, Buc-ee’s now has 34 stores across Texas, including the world’s largest convenience store, as well as 12 locations in other states. Buc-ee’s is known for pristine bathrooms, a large amount of fueling positions, friendly service, Buc-ee’s apparel and fresh, delicious food. Originally launched and still headquartered in Texas, Buc-ee’s has combined traditional quality and modern efficiency to redefine the pit stop for their customers. For more information, visit www.buc-ees.com.

    Source: Buc-ee’s

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