real estate

Impact of Technology on the Property Market

Posted on by Hassan Modjiri

The real estate market has been drawn onto the technology bandwagon, albeit unwillingly. Governments have opened land registers to the public. Planning and mapping departments have also digitized their registries.

It is now easier to find a location on a map without the help of a surveyor. You can also view actual pictures and videos of a property to help you decide. Similarly, it is also possible to transact on a property without physically seeing it.

Technology has changed the way the industry runs for the better in several ways. The realtor is slowly turning into an advisor. The real estate agents are becoming obsolete, as we knew them. With the information age, we have better access to information. This includes title records, maps, and ownership records. Online tools and reviews make it easier to obtain information about the property.

The role of the agent has evolved from providing information. It is to provide guidance including analysis, commentary, and reviews on suitability for a purpose. This enables property owners to dodge brokerage fees and find clients quicker. A broader market also means better matches between tenants and landlords.

Property search engines are revolutionizing the way the markets have traditionally operated. It is like a big library of global real estate. Sites such as Zillow enable buyers to search for property on choice markets across the globe. They empower property owners to market their properties to more targeted audiences. The user can get property price histories, value estimates, close aerial view of the property, as well as prices of similar properties in each area.

The services also aggregate available public records including size, building plans and modifications to the property. This means people can process more transactions quickly. It also helps keep property records updated with real time information. Buyers can easily compare pricing models across property lines and locations.

Connectivity means more people can work from home. The adage of moving to a new house to be near work no longer applies. Telecommuting, freelancing, and consulting jobs are becoming more popular. Traditional dynamics on the commercial and residential markets are fading. This disruption is forcing developers back to the drawing boards, literally.

An emerging trend is the promotion of work, live and play or mixed-use spaces. Access to better technology and resources will keep driving the rural-urban migration pattern.

Technologies such as 3D rendering are enabling quicker and realistic demonstrations of proposed developments. They allow you to view the actual proposed architectural plans. Renders 3D Quick is a provider of high-quality visual concepts that include interior and exterior designs, 3D floor plans, landscape, and garden design as well as aerial renderings of the project.

There is a push to have more information on mobile platforms. Consumer demand is driving the mobile market. Service providers are scrambling to keep up. The future of the industry will lean heavily on mobile technologies. Real estate service providers will need to address utility value concerns in their service offerings to exploit the mobile revolution.

 

Nancy Behrman on Real Estate Investing and Building a Property Investment Portfolio

Posted on by Hassan Modjiri

 

business woman photo

Nancy Behrman Real Estate

However you choose to define the Millennial Generation, it’s clear that coming of age during a time of economic crisis has had a profound influence on this generation’s willingness to take on significant financial risk. Nancy Behrman has noted that many young investors are eschewing the traditional means of investment, largely out of fear of the incredible market volatility they witnessed during the still-recent economic downturn.

While this risk-avoidance is still quite prominent, this generation has not given up on investing altogether and has instead adopted a shrewd approach focusing on real estate investing. New investors have been quite active in the real estate market and appear to be working diligently toward the creation of a strong property investment portfolio. It’s also become apparent that these investors have found ways around the lack of access to significant capital through the use of crowdfunding as well as countless other innovative investment strategies.

Property investing is certainly not without risk, and the economic crisis did have a significant impact on the real estate market. On balance, however, an investment in real estate is a much safer bet in the eyes of Millennials when compared to the alternative options available to them, which include many of the more traditional options such as stocks.

Amir Modjiri – My First Real Estate Investment

Posted on by Hassan Modjiri

Amir-Modjiri-CondoAmir Modjiri gives us his take on his first real estate investment. A small condo that was move-in ready.

Hassan: Why did you pick this place?

Amir: Honestly it was in my price range at the time. I was looking for a good test to see if I had the stomach for being a landlord. Can I make money with real estate? I didn’t want to lose my shirt without knowing the market.

Hassan: What do you mean the “stomach for landlording”?

Amir: Being a landlord is hard on some people. I have a property management company, but even without that, you will have a tenant who destroys your place. It will eventually happen. They’ll be scumbags or just mad about something. They will kick holes in the wall, put concrete in the drains, smear feces across the walls, or something destructive and/or disgusting at some point in your real estate career. I wasn’t sure if I was ready for that.

Hassan: And what did you discover?

Amir: I was definitely ready! I just look at my real estate investments as numbers more than anything personal. I know things will happen and it’s just part of being in business. When it happens I just pay the bills to get it back ready to rent. Once it’s ready to rent we fill it with a new and hopefully better tenant.

Hassan Modjiri: Tell me about the first condo.

Amir Modjiri: The first condo was a good fit for me at the time. I wanted something I could afford to pay cash for. I wanted to get started in real estate investing slowly. I found this condo available for $70,000 and offered that price. There were only 2 condos sold in the last two years. In my county, these are the most affordable places to buy while also avoiding the bad areas of town. For my first investment, I wanted to make sure it went as smoothly as possible.

Hassan Mojiri: Did it go smoothly?

Amir Hossein Modjiri: Absolutely! The condo needed some new flooring in the kitchen and dining room and also needed paint. All told I spent about $2500 plus closing costs. I had saved $85000 and that gave me some money for emergency repairs.

H. Mojiri: Did you have any emergencies?Amir Modjiri

Amir Mojiri: None at all in the years that I’ve owned it! The HOA fees are steep at $220 per month and now with more experience I wouldn’t call it a “good” investment. I’ve talked to my real estate agent about selling it this year.

Hossein: Now that you’re more experienced, would you buy it again?

Amir: Never! It rents for $700 and I pay $220 in HOA fees leaving me $480 cash per month. Property management is another $70 leaving $410. The cash on cash return is REALLY low!

I wanted to take a few minutes to thank Amir Modjiri for taking the time to talk with me about real estate! Amir has agreed to answer any questions you might have in the comment section below.