Tuesday, November 26, 2019

Millennials Demand Virtual Tours ....

The millennial generation that grew up with computers as appliances and fed on video games are looking for a high-quality virtual reality experience when looking for a home.
For all the fanfare about how millennials were poised to be the biggest home buying generation yet, there are still a few things that must happen to get them out of their parents’ basements or shared rentals. Interest in buying, however, is not the issue. According to new data from Apartment List, 80% of millennials do have the desire to buy their own homes, but economic factors are delaying the process for up to two decades if they must continue to assume, they must save up for a 20% down payment. Even if this was reduced by half, however, only 33% of millennials would be able to save that amount in five years or less.
For those millennials serious about buying a home, the process will look much different than for previous generations. One reason for this is the relatively new introduction of virtual reality (VR) technology into the real estate market. This newer technology is more than a videographer doing 360-degree fish-eye lens panoramas of the interior of a home for sale. They are an interactive walk-through the buyers themselves can experience, stopping to examine every floor vent, cutting edge cooktop, or even watching the pool sweep as it Roombas through blue waters. (If you want to get a taste of VR at it most potentially scary best, check out Spielberg’s Ready Player One.)
Let’s face it. The millennial generation grew up with computers as appliances. Fed on video games as their parents shook their heads thinking it was all in good fun while wondering why their kids abandoned bicycles and stopped watching old horror movies on TV. What they turned out, however, were adult children who now demand a high-quality VR experience. This next gen of homebuyers will wonder how their parents were ever able to put up with a world that did not offer it.
It is estimated by VR manufacturer Matterport, a company founded in 2011, that potential buyers spend three to six times more time examining a real estate ad listing when they study VR ads. It’s what marketing types call “sticky” advertising. Touring real estate listings is not only livelier, but also more fun. Homes listed using this technology come with a 3-D walkthrough, making a digital copy of the inside of the house as well as its outdoor spaces. Matterport supplies a dimensionally accurate model of the space precisely as the human eye would see it, whether it’s land, office building spaces, or homes, and the future includes (just like the Spielberg movie), being able to attach a VR headset to your phone.
Using VR to showcase homes is something that many high-end real estate agencies are already doing, given that 95% of buyers use the internet to look for homes, and 51% buy homes that they have found using the internet, adding VR to the mix seems inevitable. This technology to show homes is already becoming a touchstone for many luxury home buyers, done without those buyers ever having stepped foot onto a property, especially where in-person showings simply are not feasible. Not only will millennials expect this service to be made available to them for ALL types of home sales; they will likely demand an increasingly higher quality experience overall than today’s Realtor online presentations with music playing in the background or 25 still photos attached to a listing.
Then there is social media— something millennials cut their teeth on. The driving factor behind Facebook’s decision to buy Oculus Rift was its potential for use in the platform’s marketplace. Considering that Facebook is heavily invested in the growth of person-to-person sales, this can have a serious impact on the amount of time it takes to buy a house. Savvy agents will have to get behind this as the globe and its technology spin ever faster.
Another of the consequences of millennials’ inability to purchase homes as early as previous generations is a major uptick in the single family and apartment rental industry. While single and attached home rentals are growing at an even faster pace, apartment rentals are being changed using virtual reality. Time and labor-saving new tech practices enable rental managers to simply schedule live VR sessions, showing properties and answering questions as potential renters’ sip on soy chai lattes on their sofas. Using MARK.SPACE, a blockchain-powered 3D and VR open source platform for creation and integration of spaces and objects, they can also record showings and make those available to potential renters to view online.
What all this does is elevate the importance of in-person showings, since tire-kickers will be fewer and farther between. As more potential buyers can use virtual reality to tour potential homes online, fewer potential buyers will come to open houses or even in-person viewings with real estate agents. Buyers benefit from this because they can tour homes using VR and eliminate from consideration those listings that aren’t appealing based on what they see, translating into less time, travel and expense looking at homes. Sellers and agents benefit because they can sell homes faster and not waste time trying to market homes to tire kickers, but older real estate consultants who are slower to embrace and invest in technology as a driver in home sales may have a tough time making the transition to this type of buyer as they watch their younger brethren embrace it with great gusto.
Approximately 71% of millennials express very positive feelings regarding virtual reality. This generation can't imagine having someone in a uniform fill up their cars, after all. They can’t even picture a world without online person-less checkout and virtual shopping carts. While members of older generations may need some convincing that VR adds value to the real estate process, millennials will be all over it.
As I mentioned, more millennials are interested in homeownership than many people think. Economic factors may be delaying the process, but when millennials are ready to purchase a home, or even look for a rental, it’s not unfathomable that virtual reality will be an important part of the process, making purchasing a home simpler, more convenient, and less work.  
Thank you for stopping by my blog, please leave me a comment, they are always encouraged and welcome. 
Roxy Redenbaugh
SR Loan Consultant
Branch Manager
Cell 808-457-2455 
NMLS #269926 

Saturday, November 9, 2019

Using Real Estate As A Vehicle For Wealth

For many of us, our most significant investment and largest profits in life are due to having bought a house — something that acts as a de facto bank account, grows in equity and provides shelter all at once. But what if we want to use real estate as a money-making opportunity instead?

Real estate has, of course, made many millionaires. The Wall Street Journal recently reported how more than 80% of borrowers who refinanced in the third quarter chose the “cash out” option, withdrawing $14.6B in equity out of their homes, according to government-sponsored mortgage corporation Freddie Mac. Now, many are finding their homes to be a tappable source of wealth. “Home equity is the big pot of gold,” said Sam Khater, the chief economist at Freddie Mac.

It’s not hard to see why many have successfully made money buying and selling real estate because of the diverse ways to grow wealth with real estate investments. Forbes writer David Greene talks about having become a student of creating wealth through real estate and has compiled a list of some of the traits he sees as common among the most successful investors, whether they’re house flippers, residential home landlords, or large apartment complex owners.

Knowledge is, of course, key. Real estate investors always seem to know more than those around them — what drives markets, how to time market cycles, and which things to watch out for. “They are much more likely to recognize shifting markets before others do and are prepared to take advantage of these opportunities when they present themselves,” says Greene.

The very best never stop learning, and real estate is no exception.  Apart from websites where investors can learn, network, and find solutions to their problems, some also collect books written on how to invest in real estate, reading them repeatedly.  Developing the ability to analyze a property for cash flow as well as recognizing an under-valued property when you see one. Then develop a basic understanding for estimating rehab costs along with the various pieces at play when it comes to owning rental property.

The more you know about real estate investing, the less fear you’ll have. Overcoming fear is one of the best things you can learn to do if you want to carve out a successful career for yourself in real estate.

Patience is also a virtue, that it may sound simple, but that’s not always the case. “When it comes to real estate investing, there is a lot of pressure on you to move and move fast. The best deals go quick and allowing projects to run past the agreed upon timeline can be expensive. Investors are constantly facing pressures to do more, do it faster, and do it cheaper.”

The best investors know when they need to run fast and when they need to stop and wait to see how things develop. Patience can take several forms when it comes to real estate investing. Learning to recognize areas where you’ll need to practice it can save you from a lot of expensive mistakes.

Understanding market cycles are also of vital importance. Top investors zig when everyone else zags. They are fearful when others are greedy and greedy when others are fearful. Waiting for the market to slow down, or crash even, can require more intestinal fortitude but it is also a much better time to be picking up assets.

Study how to transform a property, how to be efficient, and how to be keenly focused and how to develop important relationships, I encourage you to go to BiggerPockets.com, where you can get tips like this for free. “In a hot market, you don’t just find good deals. You make good deals. Top notch investors see ways to add value to properties without spending more money than they have to. For those with the vision to bring it about, there can be big rewards for those who buy the ugly duckling and turn it into the beautiful swan.

I work with investors on several fronts, coaching, advising and how to obtain financing on any real estate deal. There are so many financing programs that are available and attractive for any type of property and investor.

It’s a completely different arena buying a Non owner Occupied (NOO) or commercial property and is very flexible.

Just to name a few different ways to access financing for your project;

1.     NINA- No income, No Asset documentation often referred to as “No Doc” mortgages. The borrower is required to provide any financial information regarding their income or assets.

2.     SISA – Stated Income/Stated Assets, Loans only require the borrower to state their income and assets situation but do not require the verifications of income and asset information.

3.     SIFA or SIVA – Stated Income/Full Assets or Stated Income/Verified Assets, only requires the borrower to state income but must provide asset documentation information.

4.     NO Doc – No additional income docs required. This is normally an asset-based loan and the subject property is looked at solely for determination of value for the loan amount lender is willing to risk.

5.     Low Doc – Minimal docs are required to determined income for borrower. Examples would be, personal or business bank statements for 12 to 24 months. 

eBOOK I have a really cool eBook for investors, go ahead it's FREE Download HERE

Thank you for visiting my blog, please leave me a comment, they are always encouraged and welcome. 
Roxy Redenbaugh
SR Loan Consultant
Branch Manager
Cell 808-457-2455 
NMLS #269926 ACMC #2225