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STRATTON EQUITIES’ HARD MONEY MEET AND GREET ON MAY 22

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Loan Officers, Real Estate Agents, Developers and Investors are invited to the Son Cubano Restaurant in West New York in May to learn more about Stratton Equities

April 17,2019- Parsippany NJ – New Jersey based Mortgage Lender, Stratton Equities, is making noise with their launch event; The Stratton Equities’ Spring Meet and Greet on Wednesday, May 22. To RSVP or learn more information about the Spring Meet and Greet follow the link here: https://strattonequitiesspring2019.splashthat.com/

Stratton Equities is a leading Nationwide direct Hard Money Lender that offers the most diverse array of programs in Today’s industry. Providing loans such as Hard Money, Private Money, Fix and Flip, Stated Income, Commercial, and more.

The Parsippany, NJ, flagship location is home to Founder, serial entrepreneur Michael Mikhail, and hungry Loan Officers that close their first loans in an unheard of previously – 4-6 weeks- and now they are ready to make a splash in the fast growing Mortgage lending industry with their upcoming Meet and Greet event.

After their soft launch in mid-2017, Stratton Equities focused on building their foundation of providing the most innovative programs at the lowest rates.

In early 2019, Stratton Equities became listed in the Scotsman Guide and focused their efforts on expanding outreach with the creation of their Seasonal Meet and Greets.

The focus of each event is to connect Loan Officers, Real Estate Agents, Developers and Investors– face to face- with curated one on one meetings during an entertaining affair focused on showcasing the high quality and luxury lifestyle that Stratton Equities possesses.

On Wednesday, May 22, The Stratton Equities’ Spring Meet and Greet will commence at Son Cubano Restaurant in West New York, in partnership with Remax Realtor Carlie Carreira and Media Partner, Realty 411.

Attendees can enjoy signature themed cocktails, the New York City skyline, and tasty appetizers, while they network with top influential members in the industry.

All guests will be able to take home a Stratton Equities’ VIP Gift Bag filled with products from their sponsors: Simplicity Title, Design + Build Enterpríses, United Real Estate New Jersey, Nationwide Property & Appraisal Services.

To find out more about Stratton Equities, please visit www.strattonequities.com

For more information about the event and to RSVP, please visit https://strattonequitiesspring2019.splashthat.com/

All press or media inquiries should email, Jordan Elizabeth Gelber at [email protected]

Another Reader Retires Five Years After Buying 1st Rental

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Hello, Realty411 readers! I hope everyone is doing fantastic and ready to step into Spring. It’s my hope that you’re expanding your education and forging ahead with your investment goals.

I, for one, am moving right along with my mission of providing complimentary and quality resources to investors around the world, which can help them realize their financial goals.

Recently, Bobby S., one of our long-term followers in the Bay Area, reached out to share with me that he was turning in his resignation at the technology company where he worked. He is only 55 years young so he’s definitely retiring early, which is what most people dream of doing.

The reason he specifically called was to thank me for organizing an out-of-state investing bus tour five years ago, which helped him buy his first long-distance rental. That experience also sparked an interest in him to want to help others learn to invest as well.

Soon, he began to tell his colleagues about his positive investing experience, and he began to seek more properties out for himself, and later also for his friends and associates.

After a number of years, our loyal investor/reader evolved into an educated authority on investing in out-of-state rentals. He now also hosts his own events and has a loyal following of investors. What an amazing experience to know that Realty411 was the instrument which shaped Bobby’s early retirement. Not only did we teach him about passive cash flow, but now he is multiplying that message by sharing it.

What a joy to know that Realty411 is changing LIVES! I changed the course of my life with real estate, and now it’s your turn too. Please call us anytime if we can assist you, or if you have any questions: (805) 693-1497. I hope to see you soon at our next live event!

Three Misconceptions about Japan’s Properties

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Japan’s attractive property market draws real estate investors worldwide for its high yield, affordability, rental income cash flow and safe haven economic environment. While the real estate investment arena is undoubtedly attractive, and the second largest real estate investment market in the world, Japan is also one of the countries most affected by natural disasters. Therefore, before jumping in to buy up properties, foreign investors, new to the market, often test the waters by asking about the quality of Japan’s structures and their ability to weather the storm. Investors ask, “What is the risk associated with the age of Japan’s real estate?” To answer this question, we explore the common misconceptions of Japanese properties.

Misconception #1 – Properties are Made of Wooden Structures

Some investors have concerns about the materials used to build real estate in Japan and whether or not they can withstand the force of earthquakes and tsunamis. This misconception stems from traditional wooden houses which used to line the streets of Japan in the former imperial capital. Most investors focus on buildings for the cash-flow play, rather than houses. Therefore, the concern is an out-dated concept and no longer a consideration. Furthermore, wooden houses are being steadily replaced by earthquake-resistant, reinforced concrete apartment blocks.

Misconception #2 – Properties Built after 1981 Pose Less Risk

In 1981, the Building Standards Law was revised to protect residential and commercial structures against earthquakes. In 2006, building certificates and inspections became even more regulated subjecting builders to inspections during the construction process for buildings above three stories. Because of the revisions to the Building Standards Law in 1981, some investors consider 1981 the turning point for sounder structure. Herein lies another misconception.

A building’s condition is affected by more than just its age. A properly managed accumulated funds pool can also affect its condition. With adequate funds, buildings built prior to 1981 can be retrofitted to bring them up to code by regularly renovating, repairing and re-strengthening exterior walls and taking care of unforeseen renovations. Alternatively, a newer building could be poorly managed with insufficient funds for renovations and maintenance. As you can see, investing in an older building under these circumstances could be the wiser choice to minimize risk.

As facilitators to foreign investors, we try not to source anything older than 1973. But, those that we did source were well-maintained buildings housing 50 to 200 units, showing no signs of deterioration, beyond normally acceptable and repairable wear and tear. Generally, since the cost for renovations and repairs are taken out of the building repair fund, if funds are insufficient, then apartment owners bear the extra costs. To ensure the risk to investors is minimal, when conducting due diligence on a potential purchase, we look into the status of the accumulated funds pool, renovation/repairs/maintenance history and the building management company’s handling of the collected renovation/repair funds and provide a report to the investor for an educated investment.

Misconception #3 – Properties have Just a 20 Year Life-Span

Life-span of a house is sometimes referred to as approximately 20 years, while that of a building approximately forty years. From a value perspective, this is a misconception. This life-span refers to tax depreciation not the quality of the property.

There are other benefits to an apartment investment over a house. Houses require more maintenance and can present unexpected costs, whereas, in a building, structural expenses are known in advance and covered by pre-set building fees. And, the building management company’s monthly fees normally cover all or most maintenance expenses, so there are far less surprises.

Overall, risk is greater with speculative play for capital gain such as units in Tokyo or Osaka. Investing in Japan for its monthly cash flow environment in cities such as Sapporo, Fukuoka, Nagoya and other cities with stable or growing population can result in stable returns. For highest yielding properties, investors should focus their criteria on condo units under 200 sq. ft., one to two room units, for inexpensive interior maintenance. Alternatively, some of our clients aim for smaller and older buildings on large plots of land in key locations. The strategy in this case is to sell to a developer when the building becomes too expensive to maintain, in exchange for either compensation at a profit, or a new unit in a new residential project built on that land. The downside is that these units only have a small fraction of land attached to them, so appreciation potential is lower.

Priti Donnelly, Sales and Marketing Manager, Nippon Tradings International, [email protected]

Priti Donnelly

Priti Donnelly is the sales and marketing manager at Nippon Tradings International, a proxy and buyers’ agency representing foreign investors with purchasing, selling and managing real estate in Japan. She understands the importance of transparency in today’s international market. Through her insight, she focuses on breaking barriers and helping investors feel confident about their overseas property investments.

Phone: +1 226 336 4097 / +81 3 4520 9262
Email: [email protected]
Website: http://www.nippontradings.com

Why Coworking is the Future of Office Space

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Coworking spaces seemed like a niche market just ten years ago. Now they are popping up everywhere, with coworking spaces in Cincinnati, New York, London, and cities across the globe. More professionals and small businesses are starting to see the value of working in a shared office space. There were more than 1.2 million coworking members in 2017, and this number is expected to grow considerably in the coming years.

The growing popularity of coworking is due to several factors, but at its core, it is a response to the fact that traditional office environments were not meeting the needs of many of today’s workers. The following are a few of the reasons why coworking is going to continue to grow and become more popular.

An Answer to Unemployment or Underemployment

In many industries, traditional jobs are no longer available or necessary to a business. This has led many to strike out on their own and find their own work.

In the wake of the 2008 financial crisis, a number of companies went under and people lost their jobs. As a result, the number of people working in co-working spaces increased. At a time of unemployment or underemployment, coworking is often a viable solution for professionals looking to take control of their career.

A Resource for Freelancers

The nature of work is changing, and there is no clearer sign of this than the increase in the number of people who work as freelancers. This trend is expected to continue, and as it does, coworking spaces are going to be a vital resource for independently employed workers.

For freelancers, a coworking space is more than just a place to complete projects. Coworking spaces are more affordable for contract employees who need an office space away from the home. Beyond that, shared offices provide them with resources and networking opportunities that would not be available if they worked in a space on their own.

A Way to Fill Floor Space

Developing coworking spaces has also become a popular option for property owners and landlords. As traditional businesses have struggled and gone out of business, the idea of converting buildings to coworking spaces is an effective way to fill empty floor space.

As the market for coworking grows, you are going to see more property owners looking to convert traditional offices and other structures into coworking spaces. In 2016, there were just over 11,000 coworking spaces. This was up from a mere 436 in 2010, and the number is projected to grow to beyond 26,000 by the year 2020.

Providing Personal Connections

One of the downsides for freelancers and independent workers is that they miss the connections they develop with other people in the workplace. For many coworking members, sharing the space with other people is one of the most significant benefits.

A coworking member may work on his or her own, but they still have people with whom they can interact. Furthermore, coworkers often find the relationships to be beneficial to their work. Collaboration between different members is a common part of the coworking experience.

While ten years ago, coworking may have seemed strange, it is now the new norm for freelancers, startups, and large businesses. These shared offices offer many benefits, and are only expected to grow in popularity. If you’re looking to change your every day routine, joining a coworking space is a great way to open yourself (and your business!) up to new opportunities.

Sun and Sea Villas Boutique Hotel Changes Hands

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Lauderdale-By-the-Sea, FL- March 21 – Rick Tobin of Premier Hotel Realty announced today that Sun and Sea Villas, a 9 unit hotel, was sold Friday March 15th to a buyer from North Carolina, for $1,990,000. Sun and Sea Villas is located at 4512 Bougainvillea Drive, one block from the beautiful Atlantic Ocean and 2 blocks north of Lauderdale by the Sea’s bustling downtown.

Sun and Sea Villas has been a favorite of seasonal travelers because of its proximity to the Atlantic Ocean and to Lauderdale-by-the-Sea’s popular beach area, downtown shops and restaurants. The pet-friendly property also offers access to a public park across the street with tennis courts, basketball courts, a playground and a dog walk.

The seller sought out the help of Premier Hotel Realty to market the property both locally and internationally to buyers who would appreciate the increasing values, great weather and economic and political stability of this seaside community.

Rick Tobin, Broker for Premier Hotel Realty and a Director of the Greater Pompano Beach and Lauderdale by the Sea Chambers of Commerce said, “We saw massive interest from both local and foreign buyers looking for a South Florida beach-area resort. Investors from around the world are noticing the long term value of the area. This is one of the many recent hotel sales that I’ve been involved in. I’m honored to be playing a part, not only in helping these sellers move on to new goals, but also to be bringing new owners to the area. I only wish I had more properties for eager buyers.”

About Premier Hotel Realty

Premier Hotel Realty, led by Broker, Rick Tobin, is based in Pompano Beach, Florida and globally markets a wide variety of commercial properties. Premier has been advising on hotel and other commercial transactions in South Florida’s beach communities. Tobin also markets local apartment buildings, industrial properties and other types of commercial real estate, often marketing to investors from around the world, recently including Canada, Sweden, the Ukraine, Denmark, Israel and various countries in South America.

For more information contact Premier at [email protected]

 

From Rehabbing Single Family Homes to Renovating a Hotel

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Featuring Stacee Nelson

 Interview by Linda Pliagas

Throughout the years, I have met many people at our live events throughout the country. After a while, you begin to know some on a personal level and begin to follow their progress as an investor. When I met Stacee Nelson years ago, she was busy rehabbing a single family residence in Santa Barbara. The project was a major rehab and the property was stripped down to the bare bones. Nelson is not one to shy away from complicated deals. She takes on projects with certainty and confidence. It’s been interesting to follow Nelson through her progression from rehabbing single-family homes to her risk-taking efforts in purchasing water-front properties and an REO tape, and now even a hotel. We recently caught up with Nelson to discuss her entry into the hospitality market with her recent hotel acquisition in Texas.

How long have you been investing in real estate, in general?

I purchased my first condo when I was 22 and then didn’t invest in anything for a long time. When I was living in Germany I started going to real estate auctions at the courthouse. My friend was buying properties to renovate and hold. I tagged along. In 2011, living in Santa Barbara, I began my formal education in real estate investing and purchased my first flip house in May of 2012.

I know you started flipping properties and I even saw one of your projects in Santa Barbara a couple of years ago. What attracted you to the hotel niche?

The idea of renovating an empty building into a small boutique hotel was initially the idea of my business partner. At the time we were looking for alternative passive income opportunities as well as ways to create a positive impact on communities. An opportunity presented itself in the form of an empty 15,000 square foot building directly on the town square in Gonzales, Texas. The town was keen to redevelop their downtown which made for a win-win opportunity.

Was it easier to take on the challenge and expense of a hotel rehab after doing many single-family home deals?

Initially we thought it would be a comparable project, just larger in scope. What we learned was that renovating an empty building into a hotel with individual plumbing, HVAC, cable, etc. was far more complicated and costly than anticipated. Certainly having a background in single-family home renovations was crucial in the planning and budgeting, but we were surprised by the sheer volume of issues that arose during the construction phase. The next one will go much more smoothly as a result of the number of…lessons we learned!

Tell us about the hotel. Where and how did you find it?

My business partner has a long-time family friend living and investing in the town. He made the initial introductions to the town’s economic development council who were very interested in supporting business growth in the area. Their support was a critical factor in the decision to purchase in Gonzales, Texas. We toured numerous vacant buildings in the area until we found one large enough and with a perfect location directly on the town square.

How long did the rehab take? Did the entire property have to be worked on or only a section?

The rehab took over a year to complete. There was a number of delays in the project when our initial contractor was removed from the project. Critical in the process, and one of our important lessons from this project, was to have a project manager on site during the construction phase. The volume of issues was simply magnified by 100 versus a single family renovation. Our hands-on project manager made the difference in our ultimate success and project completion.

To provide an idea of the complexity of a project like this: the smoke and fire alarm systems had to be coordinated with the installation of electricity and plumbing (water sprinklers), the HVAC system required coordination in timing with the electrician, drywall installer (ceiling vents) and the roofer (where the systems are housed), the water coming into the building had to be separated between the hotel and the restaurant located on the ground floor, and the elevator turned into a complicated project all by itself.

What was the biggest lesson you’ve learned from this transaction?

Rather than give one, I’m going to provide a few lessons we learned from this project:

  • For large projects, invest in a project manager who is on-site and regularly reporting on progress
  • Have the contractor regularly send pictures and review before progress payments are made
  • Necessity of a detailed project plan and budget agreed, in writing, by the contractor. We thought we had sufficient detail in our initial project summary based on our housing rehab experience. What we learned is you can’t be too detailed oriented in the budget and planning phase. The more detailed the budget and contractor commitments are, the better. Include a split between labor and materials so it is very clear for both sides, especially when you choose materials. Have the contractor sign the agreements
  • Budget sufficiently for contingencies. The larger and more complex the project is, the greater the likelihood for additional unplanned expenses
  • Have an agreed process for change orders that includes approving changes and costs before the work is completed

How is the hotel performing now? What are your goals with the property?

The hotel looks fantastic. The reviews of the guests who have stayed there are overwhelmingly positive. While we positioned the boutique hotel to provide executive style accommodations for the local oil industry, the majority of our guests thus far are visiting Gonzales, Texas for the regional rodeo events, the hot here the first shot of the Texas Revolution was fired.

In addition to hotels and single-family homes, your company also invests in Marina and resort properties around the world. That sounds very exciting!

Yes! We looked at a variety of different passive income and commercial real estate opportunities and decided that marina and resort properties were an ideal opportunity: It is a relatively untapped market segment with a few big players and the rest mostly individual marina owners which means opportunity to add value to struggling owners; it combines real estate with business; it provides regular passive income; and marinas and resorts tend to be a happy place for people, thus our motto: Invest in something fun!

Stacee, I’ve personally seen your growth as an investor the past five years that we’ve known each other, and let me just say how proud I am of you! I know you left the corporate world years ago to become a full-time real estate investor. You made it happen! Can you share some inside tips for others who want to leave their corporate job and be their own boss through real estate?

The process of becoming an entrepreneur has been wonderful as well as challenging, and even scary at times. There are a number of factors which have been critical in getting me this far:

  • Have a clear vision of what you want to do and achieve and then give it your all. Be tenacious in your pursuit, have faith in yourself and your vision, and do not give up! It will be difficult at times, and it will all be worth it in the end.

  • Have a source of income and / or savings to get you through at least a year of living before you leave your job. In my experience, everything takes longer than expected in real estate. Plan for that.

  • Surround yourself with the people you want to be like. For me that was successful entrepreneurs, business leaders and real estate investors from whom I could learn and to whom I could add value.

  • Partner with other investors who have a similar outlook on how you want to do business. I rarely do a deal alone. Sharing the project profits is well worth it to have partners with whom to share ideas, issues, opportunities and to raise capital.

  • Get educated before jumping in. I went to countless seminars and trainings to understand not only various real estate investing strategies but also marketing, asset protection, running a business and personal development.

  • Have a mindset of helping others achieve their goals, and understand that helping others first invariably leads to you getting what it is you desire.

  • Consider that 50% of something is better than 100% of nothing. I work with a lot of private investors. Sometimes the cost of capital is very high for a particular project. If it’s the difference between doing a deal and not, I take the higher cost of capital with graciousness and gratitude and get the deal done. The next one will be easier.

  • Work with honor, fairness and gratitude. BE the person people want to do business with.

  • And perhaps my biggest lesson so far is to simply ask each day ‘what do I desire to have or be or contribute today?’ or ‘What do I want to create today?’, and then be ready and open to receiving it. Once I understood the critical part in the process was asking without answering the question and being open to receiving what I asked for, my business expanded in incredible ways.

  • Have fun!

What’s next for Stacee Nelson and her numerous realty companies?

Going forward I’m focused on three areas in real estate: acquiring marina and resort properties, purchasing REOs in bulk nationwide to fix and flip, and contributing to the development and expansion of the Cashflow Divas, an organization dedicated to helping women achieve their financial freedom goals through passive (and active) income investing and financial literacy.

Stacee Nelson

Stacee Nelson is a Fund Manager for Purple Rooster Holdings, LLC, a private equity fund that purchases distressed residential properties and notes. As a real estate investor, she has purchased and turned around multiple single family residences, residential and commercial notes, and hotels. She owns investment properties in several states and has successfully raised millions of dollars in private capital over the last few years.

​In her current activities in real estate, Stacee advises and collaborates with other entrepreneurs and investors in optimizing cash flow, deal structuring, raising capital, and having multiple streams of income to support financial independence.