Sample 1 - Blog #RealEstateSample 1 - Blog #RealEstatehttps://lololol.zohosites.com/thoughts/tag/RealEstateThu, 08 Aug 2024 04:49:42 -0700http://zoho.com/sites/<![CDATA[Guard Against These Five Impactful Mistakes as a New Real Estate Entrepreneur... ]]>https://lololol.zohosites.com/thoughts/post/Guard-Against-These-Five-Impactful-Mistakes-as-a-New-Real-Estate-Entrepreneur...

When building a real estate investment platform or any business for that matter, there are mistakes that are often made, and if avoided, can free up an organization for Scale, Speed and Efficiency:

Culture Fit: Hiring Quickly Without Guidelines Or Standards

You have your first deal. You need to raise capital, and you need to hire your team. You need to find your first employee, and quickly. But a too-quick hire can have costly implications. Culture and performance need to work together to elevate you and your team. You can’t have an employee who is a great fit for your culture if there is not the appropriate level of performance. But beware of the high performer who is a poison to your culture — this situation can rip the seams of your team apart. More time will be spent on political jockeying, and less time will be spent working at a high level if employees don’t enjoy their co-worker experience. And if the office is an environment your people dread, it can deal a big blow to your aspirations. 


Pro tip: When hiring, go beyond the interview, and conduct an audition where you actually have the person perform the tasks required of the position. 

Short-Term Thinking 

Not only is real estate a team game, but it is also a long game. You aren't day trading in front of a computer; deals can take months to procure and years to exit. There needs to be a long-term mentality and approach to all aspects of the business. It may be easy to take a quick deal at a cost to a counter party or vendor, but the reality is the short-term view could have long-term impacts. When segmented by asset class and geography, real estate is a surprisingly small world, and long-term reputation and relationships can be key to a successful career. The people and skill sets required for any one deal are vast: legal, accounting, architectural, engineering, political, suppliers, construction. The list goes on, and the web of different disciplines and people is what make real estate so endlessly fascinating. Are you sensing a trend? Relationships are incredibly important. 

"If you pay peanuts, you might just get monkeys" - Taking The Low-Cost Provider 

This is an easy trap: You receive three bids from three contractors, and they all appear to be the same on the surface, so there is a tendency to accept the lowest-cost option. Often, there is a reason for the variation in pricing, and you get what you pay for. When building your real estate investment business, take the time to dig a layer deeper, go below the surface and uncover the nuances so you understand why each provider is priced the way it is. There is often a good reason, and paying a little more upfront tends to save capital later in the investment. 

Short-Circuiting The Diligence Process

Some investors do this due to time constraints. Others do it because of capital constraints. And others do it because the seller doesn’t like an army of consultants going through their asset. A fatal blow could be dealt to an aspiring sponsor if their deal haemorrhages capital due to lack of thorough upfront diligence. Think of due diligence as a bank where time and resources are invested today to save time and money tomorrow. Bonus: it’s often in due diligence where you learn of an opportunity that at first look didn’t reveal itself — and it can pay off handsomely at a later date. 

Lacking Systems And Processes That Help Mitigate Risk

These processes might not be fully developed early in an investment career, but a focus of the early stage real estate entrepreneur should be to get them in place as quickly as possible. An example is a good due diligence checklist or a thorough punch list after work is completed by a contractor. These systems and processes can be obtained through experience, education and reaching out to peers or mentors in the industry who have systems and checklists in place. Constructing appropriate guardrails is not only vital to mitigating risk, but it also frees an organization up and allows it to gain speed, efficiency and scale. 
As you embark on your real estate investment journey, be sure to prepare yourself to avoid these common setbacks. 


source/credit: BJ Turner 

We aim to deliver much needed capital for SME’s and Property Developers.

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]]>Thu, 05 Mar 2020 10:04:22 -0800<![CDATA[Three Basics to Keeping Your Real Estate Investment Strategy Simple... KISS]]>https://lololol.zohosites.com/thoughts/post/Three-Basics-to-Keeping-Your-Real-Estate-Investment-Strategy-Simple...-KISS
Amassing a personal fortune through real estate may seem beyond possibility, but it can be done —  Keep it simple and pay close attention to these three basic concepts. 


1. Maintain Conservative Ratios 

If you’re building or buying real estate as a long-term hold, make sure that property is going to cash flow very well, even if that means you utilize more equity and accept a slightly lower return. Debt-service coverage ratio (DSCR or just DCR) is calculated by taking the net annual cash a property produces and dividing it by the total annual payments for any/all debt on the property. So, if a property will generate £100,000 per year after all expenses such as taxes, maintenance, vacancy, etc., and you put a loan on it where the total monthly payments for the year equal £50,000, then you have a 2.0 DCR. 


A 2.0 DCR may seem overly conservative, but when over-leveraged owners get in trouble, equity evaporates, and banks can foreclose, leading to a total loss of capital. I like to say that real estate experiences temporary setbacks. If the market drops and you have plenty of cash, you might have to accept a lower return on equity for a while, but you won't lose the asset to foreclosure. Then, when the market rebounds, all your equity will come right back. 


Remember, accepting a lower return and/or keeping cash on the side-lines will serve you very well when the time comes. Not losing money is often better than making a huge return. Over time, not losing will be a better strategy than always chasing yield — because eventually, almost all highly leveraged individuals and/or companies will take a big tumble. 
2. Location 

I know, location is traditionally said to be the three most important things, so maybe this should be No. 1 on this list. Stay close to town, close to services and close to the right level of wealth/money. For instance, don't try to locate a low-income housing project in Westminster, and don't build £2 million properties in Inverness (unless maybe there's a ski resort or something there I don't know about). The point is, your properties blend in with their surroundings. This is not a place to try to be the one who bucks the trend. 


3. Supply And Demand 

This concept is equally easy to quantify and easy to avoid or not pay attention to — I see it all the time. Here’s the scoop: Find the information, and pay attention to it. Are there more projects coming to the area than there is demand for? If it’s even close, move on. Believe me, even a top-notch yoga studio and gourmet coffee shop aren’t going to earn an extra £200 per month in rent or fill up or sell your units if there’s no demand for them. That’s where many find themselves right now. Development is starting to run rampant, and people are working to justify their deals because they think their projects are better than the four other similar ones going up. But whether they’re better or not is not the right question. The right question is: “Are there enough buyers/renters/tenants to fill up all current deals as well as any others in the planning phase?” 

If you are investing in a project or looking to create one, don't underestimate the importance of being conservative, making sure it your location is right and paying close attention to supply and demand. 


(source/credit: John Bogdasarian) 

We aim to deliver much needed capital for SME’s and Property Developers.

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]]>Tue, 10 Dec 2019 06:01:01 -0800<![CDATA[Real Estate Costly Mistakes You Want To Avoid ]]>https://lololol.zohosites.com/thoughts/post/Real-Estate-Costly-Mistakes-You-Want-To-Avoid

Whilst like any other business, It’s far easier to lose money on rental property than to make money, no one sets out to lose money and having some guideposts about what you’re doing as well as mentor(s) or mastermind groups for advise and guidance really helps. 

On the surface, Real Estate Investing seems so easy. What’s not to like? 

Leverage , passive income ,  property appreciation,  tax benefits and more. 


Putting the attractiveness of Real Estate Property Investing aside, the reality of life as a landlord isn’t so rosy just like any business. Whilst it’s hard work, its benefits and rewards outweigh a lot of alternative investments if not all. 

It does however like most things worthwhile doing... 
  • Take time and 
  • Research and careful study to understand the business     
Some common pitfalls to avoid when getting into the rental property business. Yes, it is a Business. 
1. Looking for "somewhere you can see yourself living" instead of an Investment property 
  • Searching for a good profitable investment property is vastly different from choosing a home to live in. 
  • Finding the greatest, most beautiful house on the market or the most gorgeous vacant lot isn't the objective. You aren't looking for a house you would live in, you're looking for something that the average family would rent, appeals to the local market demand trends and ideally can fetch top rent for the lowest acquisition cost. 

2. Capital Appreciation pitfall - long-term value appreciation prediction 

One of the many advantages of real estate investing is that landlords can profit in multiple ways. 

  • From monthly rental income payments and 
  • In the appreciation of the underlying asset value - property capital growth 

Whilst the above is true, it’s a mistake to put too much weight on property appreciation. Yes, appreciation is an added benefit when a your investment property sold, however, in the meantime, the properties should be paying for themselves on a monthly basis from day one. The ultimate yardstick is your positive net cash flow and return on investment. 

We aim to deliver much needed capital for SME’s and Property Developers.

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3. Partnerships 

A business is no place for ambiguity. Clarity on the partnership and professional relationship as well as written agreements are paramount. The only investing partnerships that succeed are those that are very well defined with everyone’s roles and responsibilities strictly outlined. 

Business is after all a team sport as long as the rules of the game are clear and adhered to and there is a mechanism in place to resolve any differences. 

See this short video on why teams or partnerships fail and what to do about it -  The Five Dysfunctions of Teams 

4. Constantly raising the rent 

You may think that by continuously raising your rents, you’ll be able to make more money, even if it means more tenant turnover. But, in fact, the opposite is true. 


Think about all of the costs that go into vacancies, from fix-up repairs to updates, to marketing and more. All of these costs can easily outweigh any small gains in higher rent.


All that raising the rent on a current tenant does is force them to consider what else might be out there and make them more demanding. 


Keeping rent the same gives the tenant an incentive to stay and keeps them happy. 


The longer they stay, the lower maintenance they are, because they’ll be less likely to call you to fix something for fear that you’ll raise the rent. 
5. Tenant Profile or Criteria 
Emotion has no place in any business let alone, the rental business. 
It’s important to always think about the worst-case scenario: being forced to evict a tenant. Things happen, and sometimes a landlord has to take action. But can you? 
Clear ground rules or clarity for all involved is paramount. 
   

With all the above said, real estate investing isn’t rocket science. By going in eyes-open, seeking and paying for professional advisors as well as avoiding some of the more common pitfalls of novice landlords, your chances of success will increase exponentially. Remember, any business is a team sport! 

GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019 

]]>Wed, 27 Nov 2019 01:58:55 -0800<![CDATA[How To Strengthen Your Relationship And Investing Strategy At The Same Time ]]>https://lololol.zohosites.com/thoughts/post/How-To-Strengthen-Your-Relationship-And-Investing-Strategy-At-The-Same-Time

For many people, talking about money is one of the last things they want to do. When you're single, it’s relatively easy to keep track of your own finances and financial goals, without having to discuss, plan and compromise together with a partner. However, when you’re in a relationship, it’s important to maintain an open dialogue about shared finances and goals, and in fact, that dialogue can lead to stronger investment decisions as well. Misalignment around financial goals can often lead to friction that could put both the investments and the relationship at risk. 

In a recent Honeyfi survey of 500 millennial couples, the majority of couples (71%) reported feeling stressed, overwhelmed, nervous, frustrated and/or confused about saving for financial goals with their significant other. This financial stress can often bleed into other areas of the relationship and put a strain on potential investment decisions as well. 


On the other end of the spectrum, couples who were “very aligned” on finances and investing were twice as likely to report being extremely happy in their relationship and 59% less likely to fight about money at least once a month. 


When it comes to investing in real estate together, getting aligned with your spouse on investing goals is a must. Just as misalignment on financial goals can cause tension in the relationship, misalignment on investing goals and investing strategy can lead to dissonance as well, especially for the larger and more long-term investments that you tend to find in real estate. 
Of course, we all want to be aligned with our spouses on financial and investing goals, but it’s often easier said than done. Each person develops a different relationship with money over the course of their life due to various experiences, including their own family's notions about money, the neighborhoods where they grew up, friends they had and more. 


Because of this, each person has a different risk tolerance when it comes to money, and those risk tolerances in a relationship might not always align. Often, one person in the relationship tends to be more risk-averse than the other, and this can lead to disagreements on whether and how to invest shared savings. 


But, believe it or not, this can actually be a huge advantage to your long-term investing strategy and growth. Let me say that again: Disagreeing with your spouse on investing strategy can be an advantage. 


Think about it this way. If you tend to be risk-averse, and you were making all the investing decisions on your own, you might see a ground-up development deal and turn it down before ever giving it any serious consideration. Because you're focused on all the risks, you might miss out on all the potential rewards on the backend. On the flip side, if you tend to be more open to risk, you might come across a long-shot opportunity and take it without fully understanding all the potential risks, which could lead to unexpected losses down the road. 


That's why it can be so valuable to have an investing partner whose viewpoints differ from yours, even just slightly. Talking through the pros, cons, risks and rewards of each deal can help you find and create stronger investment opportunities and will make you both more comfortable and committed to the deal when you finally decide to pull the trigger. 


This is why it’s so important to have regular and ongoing conversations, not just about real estate investment opportunities, but also about your long-term financial goals. To make it fun, plan financial date nights. Get some treats and a couple glasses of wine, and dream about your future together. Before you break out the spreadsheets and the budgets, focus on your shared vision of the future. Where do you envision yourselves in five years? What are some pain points in your life today that you wish you could change? What does the ideal retirement look like for you? 

We aim to deliver much needed capital for SME’s and Property Developers.

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Having a shared vision will put all the potential real estate deals and investment decisions into context, as you'll both be aiming toward the same end goal. 

If your spouse is more risk-averse than you are, be sure to give them plenty of time to do their own research and get comfortable with the real estate investing ideas and strategies you’re proposing. Share blog posts, books and podcasts that you’ve found to be especially helpful in your learning journey, so your spouse can hear from other experts and start to build their own understanding and perspectives about real estate investing. 

Real estate investing can be intimidating for those who have never done it, so be sure to give your spouse ample time to get comfortable with the idea. Be patient when they express doubts and ask questions, provide resources when appropriate and find ways to learn together. 

Then, when you’re both ready to take the plunge, start with a low-risk real estate investment so you can test the waters. Once the cash flow starts coming in, your spouse will likely be much more willing to continue investing and to try other, potentially more aggressive, real estate investment strategies. 

Overall, when embarking on a real estate investing journey with your significant other, remember that you’re in it together. Because real estate investments tend to be more sizable and longer-term than other types of investments, it’s important to talk through and gain alignment on investing strategy and investing goals from the outset. 

Ultimately, by having these investing and financial conversations consistently and frequently, you are deepening your relationship, building a shared vision and increasing the chances that you'll realize the financial and life goals you each have. Along the way, remember to dream about your future together, take risks together, support each other and of course, to have some fun as well. 

Source: Annie Dickerson, Forbes Council Member 

GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019
]]>Tue, 26 Nov 2019 00:13:13 -0800<![CDATA[Is a Joint Venture Equity Real Estate Partner right for you? What you should know...  ]]>https://lololol.zohosites.com/thoughts/post/Is-a-Joint-Venture-Equity-Real-Estate-Partner-right-for-you-What-you-should-know...
From single-family, multifamily offices, pension funds, alternative investment managers, there is a growing desire to invest directly into real estate opportunities throughout the UK, Continental Europe and the world as a whole.


The key challenge for all these potential capital sources is the ability to properly and efficiently assess the many opportunities to identify the most profitable of opportunities and is subject to internal resources and experience that each entity has. 
With the constant and increasing requests from real estate companies wanting a family offices, private equity investors as well as other institutions to co-invest with them, it is essential for these various equity capital partners to be able to screen opportunities efficiently before spending additional time. 


Although not exhaustive, below are some of the initial points considered when determining if it makes sense to continue the due diligence process on a  new real estate property developer and development scheme. These coincidentally as is industry standard, are the same key factors that real estate investment asset managers, banks or commercial lenders as well as other institutions look at before investing or taking on any debt or joint venture equity investment commitments. 
1. Property Developer or Sponsors Experience 


Does the joint venture developer partner or sponsor have experience in similar types of real estate investment schemes, property types and geographic markets of the asset that the JV partner is asking for the particular institution to consider for debt or equity capital funding? 


Under scrutiny will be for example expertise on the day-to-day operations of the real estate opportunity as the funder must have complete confidence in the JV partners ability to successfully execute and deliver the project on-time and on-budget. 


This includes confidence in their ability to not only manage the project during the good times but also understand what to do when things don’t turn out as projected or the market changes direction. On this note, personal guarantees are a industry standard requirements especially to cover the whole loan if debt and if equity to cover cost over-runs as an example. 


2. JV Property Developer's Strength 


This refers to financial solvency and available tangible assets for which validate the personal guarantees which would otherwise be meaningless with out assets to back.   
  • Does the JV partner have a strong business balance sheet to complete the suggested project and to weather any unexpected development setbacks or cost over-runs? 
  • How many projects does the property developer partner successfully completed in the recent past and have in their pipeline? 
  • Is the JV partner spreading themselves too thin or do they have the capacity to see each of the projects to successful fruition taking into current economic & political market climate as well as supply and demand or any future developments that may affect project exit viability? 
  • Last but not least for any of the capital partners is, contingency planning; what if scenarios 
    • What if “the market was hot.” 
    • What if the project went over budget? Etc 

We aim to deliver much needed capital for SME’s and Property Developers.

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3.  JV Property  Developers Track Record 


When evaluating a JV property developer, the following questions are asked by both debt & equity capital providers: 
      • What does their history show? at does their history show? 
      • Have their returns been consistent? 
      • How long is their track record? 
      • If the JV partner's track record is since 2010, is their success because they bought when the market was down, or did they withstand multiple cycles and how did they perform? 

The track record says a lot as it can give you some insight into the future of your joint venture. Don’t take the JV partner's word for it — be sure to confirm. 
4. Development Appraisal & Economic Viability 


One of the key tasks with projects, especially during times of real estate being a go-to investment, is to identify whether the proposed investment is feasible and the projections are realistic. Some questions you should evaluate are: 
      • Are the finances such that the project's lifetime operating costs are covered and the project still provides an acceptable return on investment for the family office? 
      • Are the models on the project proposed to the family office by the JV partner aggressive, conservative or somewhere in the middle? Too often, all that is presented to the family office are the best case scenarios. 
      • Was the project stress tested by running different downside scenarios so that the family office has an understanding of what really could happen and how that would affect the potential returns? 


Cost modelling tools from companies such as CostModelling can be instrumental in development appraisal accuracy as well as property valuation from companies such as HousePrice.AI for GDV estimates (Gross Development Value) 

5.  Financial Incentive & Alignment Of Interest for all Stakeholders 


Although there is no one way a Joint Venture is structured, the typical structure consists of 90% of the equity provided by joint venture equity partner entity or debt provider (LP) and 10% by the developer or operating partner (GP). 


Typically, after a return of capital back to the investors (both developer and equity partner), capital will then receive an agreed upon-preferred return pari-passu, after which time there is a split of profits above the preferred return as per agreed percentages for example 
      • 80% to the jv equity provider (LPs) and 
      • 20% to the property developer (GP). 


This 20% is considered a "promote" to the GP, which is essentially the financial incentive for the developers (GP) to carry out a successful project. 

Any other fees that the developer (GP) may charge such as development or property management fees would be able to be earned at market-rate prices. 


Some equity providers prefer a simple structure of 50/50 with minimal expenses going to pay the standard costs. 


A joint venture with an experienced property developer is a great way for family offices, investment management firms, asset managers and other institutions to deploy capital into real estate without the need for huge workforce to execute and deliver multiple projects across the globe giving great leverage as well as asset backed attractive returns.


GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019 
]]>Mon, 25 Nov 2019 00:26:46 -0800<![CDATA[Do You Want to Succeed As A Real Estate Investor? ]]>https://lololol.zohosites.com/thoughts/post/Do-You-Want-to-Succeed-As-A-Real-Estate-Investor

Here are half-a-dozen things to be aware of... 

london

The high-income expectation without a lot of hard work gets a lot of people all around the world into trouble and disappointment.    

Yes, you can make good money in real estate, but like any business and anything worthwhile doing in life, consistency and persistency are key ingredients as well as tenacity to not fail and quit, but fail and learn over and over again until that break-through. Having a mentor and professional team of advisors is a MUST not an option. 

As the saying goes, "If you have a Dream, you MUST build a TEAM and have a Theme". Business and investing is a team sport, don't try and do it alone as there is no such thing as "a self made, millionaire or billionaire" 
1. It's a challenge to do part-time but can still be done with discipline and consistency, keeping focus on the main ultimate prize - financial freedom or your individual WHY. 
Yes, there are part-time property investors and you can do deals when you're not at work. However, if your work schedule is like most of the 95% not financially free population, it's going to take discipline and massive action in doing what you've never done before, in order to get what you've never got before. Sounds like a cliché, right? 
2. You are ultimately self-employed; captain of your ship and destiny. 
Though you'll have to work with various professional advisers such as lawyers, real estate agents, contractors, lenders, insurance brokers, finance brokers, accountants etc, you are in business for yourself. This means that you'll need to keep up with laws and taxes to make sure you don't end up crossways with HMRC or industry regulators. 

Your requirements of professional advisors will depend on whether you are investing in simple buy-to-let single family tenancy or multiple tenancy property or developing new build property or doing conversions etc 
3. Finance, Cost Modelling or Budgeting 
Like any business, you will need capital for property acquisition costs, construction or refurbishment costs which all need to be considered as accurately as possible prior to purchase as these can affect your investment viability and profitability. 

For real estate development companies such as CostModelling offer free software and paid versions that could help with this very important task - see https://costmodelling.com/ 

Ultimately the numbers should tell you whether your investment is worth the investment as well as other factors such as area/location growth potential and trends 
4. Finance Options 
Fortunately with real estate unlike for example buying stocks & shares, you can borrow in order to invest and therefore leverage with the banks or other investors capital making it an attractive investment asset class. 

Funding options ranging from short-term / bridge loans to commercial term loans as well as residential property or commercial development loans. See our real estate capital section.

We aim to deliver much needed capital for SME’s and Property Developers.

Call Now ​+44 (0) 203 2909019

5. Investment Strategy and Exit 
Some of the key questions here are:
  • Building to sell or build to hold and rent? 
  • Are you investing for capital growth, income, or both capital growth and income 


The above questions will affect type of funding, your investment cash input and investment costs as well as quality and type of finishes for example 


If you're into houses, showing them, the sales and transaction process and helping people to buy and sell, you're probably going to succeed and make a lot of money over time. 


The key message is to get into the business with a realistic attitude and income expectation. Above all else, build a TEAM. See this short video on  how best to build a wining TEAM
6. Want to learn more?  Call us and we'd be delighted to guide and assist you in your property investment journey. 
GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019 
]]>Mon, 18 Nov 2019 11:26:57 -0800<![CDATA[Is Commercial Real Estate Heading Off the Cliff? BOOM or BUBBLE]]>https://lololol.zohosites.com/thoughts/post/Is-Commercial-Real-Estate-Heading-Off-the-Cliff-BOOM-or-BUBBLE

Watch this BBC interview with Trish Barrigan, Co-founder, Benson Elliot Capital,  regarding commercial real estate market opinion.

  • Diversity of thought is critical to any business.
  • Flexible but fearless

Call Now ​+44 (0) 203 2909019

We aim to deliver much needed capital for SME’s 
and Property Developers.

]]>Thu, 07 Nov 2019 02:35:53 -0800<![CDATA[How Do You Identify the Best Places to Buy Rental Property in Any Market? ]]>https://lololol.zohosites.com/thoughts/post/How-Do-You-Identify-the-Best-Places-to-Buy-Rental-Property-in-Any-Market
Want to know a few fundamentals that will help you spot the best real estate markets?  Check out the tips below on what to focus on when searching for a great buy-to-let rental market.

Market Trend and Potential as well as Supply & Demand Factors 

The ideal market is one with high and steady rental growth now and in the long term future. 

If you’re simply searching for markets with the highest rental growth for the past few years, then you’re starting off on the wrong foot . 


​A strong past performance in rental growth doesn’t guarantee a strong future performance
You need to pay attention to the fundamentals that are driving the rental growth. Sometimes the fundamentals are there, but the rental growth hasn’t started yet. Those are the hidden gems that you want to invest in.

Investing in a real estate market solely based on strong historical performance is like blindly buying a growth stock. The investment has been doing well, but it can turn sour very quickly when the demand decreases. Like how people sell their stocks when they think the company is becoming overvalued, residents can get priced out of a market when the city becomes unaffordable. 

Call Now ​+44 (0) 203 2909019

We aim to deliver much needed capital for SME’s and Property Developers.

Factors to Focus on When Searching for a Great Buy-to-Let Rental Market 

  1. Population Growth 

What to look for:  Cities with 1.5 percent minimum year-over-year (YoY) growth for the past two decades and more than 100,000 people. 
 

  1. Household Income Growth 

What to look for:  Household income growing at 1 percent minimum YoY for the past two decades. 

Without substantial household income growth, there won’t be healthy rental growth. If a city has a strong rental income growth but a weak household income growth, then it’s a sign that its residents are getting priced out of the market. The population growth will start slowing down. 

  1. Crime Rate 

What to look for: A crime index that has been decreasing consistently for a decade. 

A decreasing crime index is a sign that the city is improving. Companies also study the crime index to make sure that their office locations are attractive to workers, especially those with families. 


  1. Household Income to Rent Ratio 

What to look for: Minimum current median household income to median rent ratio is 4x or more. 

This is a great metric for measuring affordability in the area. Make sure you use median, not average, because high household incomes can significantly affect the average. 

  1. Employment Growth 

What to look for:  Minimum employment growth of 2 percent YoY for the past two decades. 

Employment growth is a key indicator of the economy. A growing population is not sustainable without good employment growth. However, you should find out what sectors or companies are growing and whether the growth will continue or stop. 


  1. Employment Diversity 

What to look for:  Compare current local employment ratio to national employment ratio. 

You should look for cities with good diversity in terms of employment. This means the city’s local ratio should be within a few percent of the national average across all industries. 

You want employment diversity to mitigate risks associated with certain industries declining. 


  1. Median House Value 

What to look for:  Look for 2.5 percent YoY growth in median house value in the past two decades. 

This is a good indicator of the overall wealth in the city. 

Additionally, if the median house value has been increasing consistently for 20 years, then that means it’s expensive to buy a house, forcing renters to stay renters longer. 

 

In Conclusion – Just like Location, Location, Location, Know Your Market – Research, Research, Research 


Some good property related data sources 

 

GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019  

]]>Wed, 30 Oct 2019 11:48:47 -0800<![CDATA[Get Rich With Real Estate ]]>https://lololol.zohosites.com/thoughts/post/Get-Rich-With-Real-Estate

Get Rich With Real Estate - Start TODAY!! Listen to Robert Kiyosaki  in the Rich Dad Radio Show.

We aim to deliver much needed capital for SME’s and Property Developers.

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]]>Mon, 09 Sep 2019 06:23:08 -0800<![CDATA[13 Steps to Real Estate Investment Success]]>https://lololol.zohosites.com/thoughts/post/13-Steps-to-Real-Estate-Investment-Success

Successful real-estate investors aren’t made overnight! It’s not easy to succeed in real-estate investing! However, there are some tips to become successful in this field! Think Realty published 13 Steps to Real-Estate Investment Success. Let's check them out!

We aim to deliver much needed capital for SME’s and Property Developers.

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