Real Estate Investment, Asset Management
Article | May 25, 2023
For first-time homebuyers, making the transition from renter to homeowner can be exciting, overwhelming, and scary all at once. Yet as Gary Keller and Jay Papasan write in the second edition of Your First Home, “Those who live the most fulfilling lives base their decisions on facts, not fears.”
Below, we’ve outlined four powerful facts from Your First Home to help move anxious homeowners toward the fulfillment and abundance Keller and Papasan nod to. Delivered with empathy, care, and your expertise – these facts can help ease fears and move clients closer to experiencing all the bounties homeownership brings.
Fear 1: “I can’t afford to buy a home now.”
Fact: Until you do the math, you don’t know what you can or can’t afford.
If you are currently paying rent, generally you can afford to buy. From a financial point of view, in the United States, the tax savings on mortgage interest alone usually make up most of the difference between your rent and mortgage payments – the tax write-offs you get at the end of year will generally help you save a lot of money.
Additionally, depending on your credit score, you can end up affording more than you realize. Note: The credit scores used for mortgage lending tend to take on a much larger picture of your overall credit score.
Finally, although there may be a higher initial cost to buying a house, if you’re planning on staying in one place for a few years, the equity you build can end up being a financial boon.
Fear 2: “I should wait until the real estate market gets better.”
Fact: There is never a wrong time to buy the right home.
Whether “right” means the right price or the right property for you, waiting for the perfect market timing seldom works to your advantage. If you don’t believe us, look back to the Great Recession when the bubble around the housing market burst, GDP declined 4.5% and unemployment rose to around 9.5%. Everyone still feels the impact of this incredible financial event. But, like those who endured the Great Depression, the people who lived through the Great Recession made it through, and benefited from an era of financial growth. In fact immediately following the Great Recession, the United States entered the longest period of rising prices and general prosperity since World War II. The fact of the matter is, even the biggest economic downturns are, well, normal. Even when there were some events that threatened to dampen the economy, like the COVID-19 pandemic, the housing market still continued to thrive.
In the end, there are two ways to make money in real estate: timing and time. That is you happen upon the right moment to purchase your home before the price appreciates, or you hold it for a long enough time so that appreciation makes your purchase investment right. If you miss the first, you can most certainly count on the second.
Fear 3: “I don’t have the money for a down payment.”
Fact: There are a variety of down-payment options available to you.
While many people believe that making a home purchase requires a substantial down payment, as as much as 20%,, this is seldom true. Options are always available to you that require much less than this number, as low as 5%, some even less. Moreover, most states have down-payment assistance programs that can help you afford to buy.
House-hacking can also be a great way to make homeownership a more affordable option. House-hacking is when you purchase a piece of real estate and lease out one of the bedrooms or units. This rental income can then be applied toward your mortgage. Or, you can participate in home rental programs like Vrbo or Airbnb. While it may not be ideal all of the time, you could always make your month’s mortgage payment by renting your place while you’re on vacation.
Fear 4: “I can’t buy a home because my credit score isn’t good.”
Fact: A less-than-perfect credit score won’t necessarily prevent you from buying a home.
Although it’s valuable to have a good credit score, a poor one shouldn’t necessarily prevent you from talking to lenders to explore your options. You can expect that a good loan officer (or mortgage specialist) will be able to help you resolve your credit challenges, often simply by showing you how to move or consolidate your debts, or by referring you to a credit counselor who will put you on a plan.
If you’re facing the challenge of having no credit history because you are new to the workforce or have not made regular purchases on credit, there are still possible solutions that you may want to explore. One is to secure financing with the help of a cosigner, such as parents or a close relative, who is willing to stand by your ability to make the payments. Another can be finding a lender who is willing to use alternative forms of history such as student loans, rent, and utilities.
Looking For More Homeownership Resources?
Head over to the Your First Home webpage for freebies, including information on how to build out your real estate dream team and for your clients, a resource on how to determine their homeownership criteria.
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Real Estate Technology
Article | July 25, 2022
Is your real estate business set up for long-term success or do you hop from transaction to transaction, seeking clients who are ready to buy or sell immediately? Buyers and sellers who are ready to act now are great, but they’re just the bottom of a well-thought-out lead funnel.
Most leads you receive could be anywhere from three months to a year or two away from making their transaction. If you plan to still be in real estate when the time comes, those leads could be incredibly valuable.
Understanding Lead Nurturing
One of the biggest decisions people will make in their life is whether or not to purchase a home. Most people will want to do some research and find out what exactly a real estate transaction entails before they become serious. As the first professional they talk to, you’re in a great position to close the sale…if you’re willing to work within their timeframe.
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Real Estate Technology
Article | July 12, 2022
The coronavirus outbreak has quickly put the economy into turmoil. While many businesses are struggling to keep up with the drastic changes in the market, the commercial real estate industry may have some bright spots despite obvious uncertainties. The COVID-19 outbreak in the U.S. is expected to advance trends in commercial real estate that were established in the market before the global pandemic. Of course, the industry is facing some difficulties, but these are currently projected to only be short-term. In response to the coronavirus outbreak, the NAIOP Research Foundation is suggesting an increase in demand for both industrial and office sectors.
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Real Estate Technology, Asset Management
Article | May 30, 2023
Learning the latest trends and strategies in digital real estate asset management will help enhance business. Leveraging digital tools, benefits, and techniques transforms asset management approach.
Contents
1. Introduction
2. Five Latest Trends in Digital Real Estate Asset Management
2.1. Cloud-based Real Estate Asset Management
2.2. Blockchain Integration
2.3. Growth of Smart Buildings
2.4. Adoption of Virtual and Augmented Reality
2.5. Expansion of Proptech Ecosystem
3. Why should Businesses Implement Digital Asset Management Trends?
3.1. Improved Customer Experience
3.2. Future-Proofing
3.3. Better Brand Management
3.4. Improved Collaboration
3.5. Cost Savings
4. Conclusion
1. Introduction
Keeping abreast with emerging trends and technologies is crucial for success in the ever-changing and dynamic real estate industry. With the proliferation of real estate assets, there is a growing demand for improved organization, storage, and management of digital assets. Digital asset management assists real estate professionals in optimizing workflow, collaboration and improving decision-making abilities while reducing costs and ensuring asset security. Additionally, organizations adopting digital asset management can future-proof their strategies and gain market advantage. The article highlights the significance of digital asset management in real estate and the most recent developments in this field.
2. Five Latest Trends in Digital Real Estate Asset Management
Digital Real Estate Asset Management has emerged as a critical component in the management of real estate portfolios. As a result of technological advancements, businesses have access to new tools, platforms, and applications that facilitate automation and streamline asset management activities. With the increasing demand for transparency and efficiency, adopting digital technologies in asset management has become necessary.
2.1. Cloud-based Real Estate Asset Management
The real estate industry is undergoing a significant transformation, with more and more businesses moving towards cloud-based platforms for asset management. This shift is driven by the need for increased scalability, flexibility, and accessibility in managing real estate assets. With cloud-based platforms, real estate asset management professionals can now work on properties from anywhere and anytime without being confined to their offices. Cloud-based platforms have simplified asset management by leveraging cloud computing technology to streamline processes and enhance productivity. In addition, leveraging the technology businesses can also provide their clients with better digital asset management solution and faster services, which can help increase customer satisfaction and retention rates.
2.2. Blockchain Integration
Blockchain is a secure, decentralized, and transparent ledger system that enables the transfer of assets and data without intermediaries. Integrating blockchain technology into real estate asset management is a trend businesses must follow for digital asset management. However, the siloed nature of digital real estate business networks causes friction and opacity. With blockchain integration, real estate businesses get solutions to tokenize assets, increase process efficiency, reduce costs, and offer global asset distribution, ownership fractionalization, secondary market opportunities, and data accessibility. The integration further benefits in making better investment decisions, portfolio management and improve business position to compete in a rapidly changing digital landscape.
2.3. Growth of Smart Buildings
The growth of smart buildings is a prominent trend in digital real estate asset management. Smart buildings utilize IoT devices and sensors to collect data and automate tasks, resulting in improved energy efficiency, cost savings, and enhanced tenant experiences. In addition, it leads to improved occupancy rates and brings in ROI for real estate asset managers. With the potential for greater sustainability and improved tenant satisfaction, implementing smart building technology is rapidly gaining traction among real estate professionals. Furthermore, smart buildings provide real estate asset managers with valuable insights into building performance and tenant needs, enabling them to make data-driven decisions and improve operational efficiency. As a result, the trend toward smart buildings is expected to continue, with real estate asset managers increasingly adopting technologies to stay competitive and maximize overall returns.
2.4. Adoption of Virtual and Augmented Reality
The growing demand for augmented and virtual reality in the real estate industry can be attributed to the rapid adoption of advanced technology that has significantly enhanced user experiences, thereby streamlined the buying and selling process. These technologies have created a new reality for architects, builders, sellers, and buyers, ensuring cost-effectiveness, global reach, mobility, visualization of changes, construction management, and profits. Additionally, VR and AR technology facilitate remote property inspections and maintenance, thus reducing costs and saving time. However, implementing VR and AR technology comes with many challenges, including the need for specialized hardware and software and the cost of development and maintenance. Nevertheless, their potential benefits in real estate asset management make it a trend that businesses should consider implementing to remain competitive.
2.5. Expansion of Proptech Ecosystem
The rapid advancements and widespread adoption of technology have fundamentally changed people's lives and work habits, influencing their expectations for living and workspaces. As a sector that touches every aspect of daily life, the real estate industry is well-positioned to engage in cross-industry integration with sectors such as finance, medicine, education, and healthcare. The concept of prop-tech explored in this report encompasses two dimensions. The first dimension is digitalizing the real estate ecosystem, which includes digitizing business activities from land acquisition and development to real estate transactions and property asset management services. The trends in user space requirements need flexible space selection, user-experience-tailored space, cutting-edge information practices, innovative exposure, and customized solutions that are closely connected to people.
3.Why should Businesses Implement Digital Asset Management Trends?
As technology revolutionizes every industry, staying up-to-date with the latest trends is crucial to achieve success. Similarly, implementing digital asset management trends is about staying relevant, competitive, innovative and meeting the demands of a modern and tech-savvy customer segment.
3.1. Improved Customer Experience
Adopting digital asset management trends in real estate can significantly improve customer experience. Businesses must offer fast and easy access to their assets, resulting in faster decision-making and increased satisfaction. Enhanced search capabilities make it easier for customers to find what they need, while personalized content based on their preferences and past interactions leads to better engagement and satisfaction. A user-centric approach helps businesses tailor their digital assets to meet customers' unique needs and expectations, improving customer loyalty and increasing revenue.
3.2. Future-Proofing
In today's rapidly evolving business landscape, it is critical for companies in the real estate industry to remain agile and adaptable to stay relevant and competitive. By implementing digital asset management trends, businesses can future-proof their operations and ensure their longevity in the market. It means staying up-to-date with the latest technological advancements and continuously adapting to meet changing consumer demands. In addition, digital asset management allows for greater flexibility and scalability in business operations, providing a strong foundation for growth and expansion.
3.3. Better Brand Management
Digital asset management can considerably improve brand management in the real estate industry. By providing a central repository of brand assets such as logos, images, and marketing materials, businesses can maintain consistency across different platforms and avoid inconsistencies in branding. In addition, with easy access to the latest version of assets, all organization members can ensure that the correct branding materials are being used. It further helps businesses maintain a strong brand identity and avoid confusion or misrepresentation of their brand.
3.4. Improved Collaboration
With a central location for teams to access and share files, digital asset management trends help streamline the process, workflows and facilitate collaboration within teams. In addition, collaborative tools like version control and commenting features allow team members to work together more efficiently and effectively while ensuring accessibility to real-time information. With digital asset management, businesses can enhance team collaboration, improve project outcomes, increase innovation, and better business results.
3.5. Cost Savings
Businesses in a highly competitive market continually look for ways to improve efficiency and cost cutting. Therefore, adopting digital asset management trends can be highly beneficial, as it provides a more effective and economical means of managing and disseminating digital assets. In addition, business processes can be streamlined, identical tasks are eliminated, and unnecessary third-party solutions can be avoided with the help of a centralized digital asset management system. Moreover, digital asset management can improve security by providing controlled access to assets and reducing the risk of unauthorized use or distribution.
4. Conclusion
Digital real estate asset management trends help occupy better physical asset value through digital transformations, data analytics, and operational efficiencies. Traditional real estate companies are challenged to think like digital or technology-based asset management companies that help link service delivery and value to revenue. With the potential growth of digital asset management for real estate businesses, it is time for companies to shift from just space providers to service partners and tenant providers.
Adopting software solutions and new trends in real estate asset management offers many benefits, including improved customer experience, future-proofing, digital transformation, better brand management, collaboration, and cost savings. In addition, integrating technologies like artificial intelligence, machine learning, and blockchain can further enhance the efficiency and effectiveness of digital asset management.
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