If you made $108 million dollars, would all your money problems be solved?
If you answered yes to this question, there’s a chance you don’t understand that having more money doesn’t solve your money problems. It just brings new ones.
Take for instance the story of Antoine Walker. In 1996, he was drafted by the Boston Celtics and had a storied career.
It's no secret that Americans love camping and spending time outdoors. Whether roughing it in a tent or enjoying a luxury cabin, campers in 2011 spent 534.9 million days camping, an average of 12.6 days per person. And as the primary camping season starts to wind down, those who own and manage vacation rental properties have the ability to revamp their cabins and cottages and reevaluate their marketing strategies. Here are just a few ways to maintain or improve the quality of your vacation rental property during the off-season.
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After Hurricane Irma, Florida residents who rent their homes are facing a variety of obstacles: paying rent for uninhabitable homes, difficulties getting refunds on rent deposits, and struggling to find new housing in a strained rental market.
The aging in place movement has prompted many seniors to look to the future and make changes so that they can remain in their homes and live full, uninterrupted lives. But even though the movement has allowed many seniors to have a better quality of life, it's arguably had another unintentional effect: it may be having a negative impact on the U.S. housing market. And Millennials are taking the brunt of the blame.
Due to seasonal changes in demand, the housing market is difficult to pin down. And with today's ever-changing political and economic climate, it's even more exhausting trying to get a clear picture of what's to come.
That being said, so far in 2017 one thing has been very clear: supply is low, demand is high.
According to Forbes, there are a few more facts we can ascertain based on past trends and new housing market research.
Since the Great Recession, crowdsourcing and the sharing economy have become increasingly popular, especially among younger people who were especially hard hit by the collapse. Millennials have been using crowdsourcing to fund artistic endeavors, art projects, and now — real estate.
New commercial real estate crowdfunding firms have emerged with a bang, with estimates placing the industry's income around $3.5 billion in 2016, just years after it began to appear.
The principal tool for crowdfunded real estate is Electronic Real Estate Investment Trusts, which have allowed companies to greatly expand their pool of investors.
Traditionally, real estate has been a very popular investment vehicle, but often cost prohibitive for young people. However, among those who have invested in real estate, 96% credit it with their financial success. But for most people, securing enough financing for the down payment alone, which can be as high as 25% the cost of the property, can be a challenge.
For a long time, non-traded REITs were the best bet for lower income investors to diversify their portfolio with real estate. The high front-end fees, which can range from 10% to 15%, still discouraged many investors from buying in.
Now, eREITs have a significant advantage. Because their online platform allows them to cut out the middleman, crowdfunded real estate firms are able to significantly lower the fees required, or eliminate them all together.
For crowdfunded firms, the ability to appeal to lower income investors might represent the key to success. Real estate investor Jay Maddox told National Real Estate Investor Online that while institutional investors shy away from crowdfunded real estate, the sector is on the brink of massive expansion.
“I also think it is really going to be the best fit for properties that are well below institutional investor’s radar screen.”
That means that, in order for crowdfunded real estate businesses to thrive, they will need to pick their targets carefully. A Florida based business, for instance, might not be able to compete in the major Florida destinations towns like Miami or Orlando, but there are still 1,200 miles of sand beach and 1,800 miles of coastline for them to find a less competitive space to develop.
The proliferation of crowdfunded real estate firms has been beneficial for more people than just the investors, or even those in the real estate industry. The rapid acceleration of online investment platforms has also been a boon for the information and technology industry, which is responsible for the design, operation, and security of such sites.
At the same time, there have been signs of trouble within the industry. Crowdfunding platform iFunding, in particular, has garnered a great deal of negative attention lately, with investors and real estate professions bemoaning the poor organization structure and operations.
Still, the future looks bright for crowdfunded real estate. Tore Steen, CEO and co-founder of CrowdStreet Inc, is especially optimistic.
When speaking to National Real Estate Investor Online, he said, “There could be a day down the road where players that have traditionally raised money for institutional investors could be looking at this retail channel as a supplement, or even as an alternative when it gets big enough.”
I wanted to take the time to write about the top ten tax deductions available for real estate investors. Though some of this may seem relatively elementary, I've included a few gold nuggets for even our most experienced clients.
Real estate investors are always asking what expenses landlords can deduct. Because the answer to that question can quite literally be endless, we often tell our clients to record everything. For those expenses that our clients are unsure about, we ask them to create an “ask my accountant” category or account in their bookkeeping solution which they can discuss during a short call.
According to the VIX index — which is known as the “Fear Gauge” — investors are feeling calmer about the stock market than they have in 25 years.
This “Fear Gauge” is at it’s lowest since 1993.
And professional traders are scared out of their mind.
Why would that be?
When it comes to getting rich, so-called experts are full of advice on how to save your way there. There’s no shortage of articles about couples who saved their way to $1 million or “expert” tips on how to save more money.
And these articles are true. You can save more money following their advice. But you have to consider the cost. Because the saver mindset is a very different and dangerous mindset about money than how the rich think about money.
The Real Estate Professional status is a designation given by the IRS based on the number of hours that you work in real estate activities versus other activities.
It doesn't mean that you have to become a real estate sales agent or broker. You don't need to drive around showing people houses or putting out “for sale” signs.
