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Nine Things To Keep In Mind About Blockchain In Real Estate

Blockchain is the next frontier of the real estate market, making inroads at a fast clip.

The use of the technology will make it possible to have transparent transactions that sellers and buyers will benefit from. From real-time ledgers to full-on shared databases and processes, blockchain throws the doors wide open with possibilities in real estate. However, does it come at a cost?

Some agents think it might, while others are embracing it with abandon. Yet, there is much to learn and consider before adopting blockchain into your business processes.

Nine members of Forbes Real Estate Council share the thing that everyone in their profession needs to know in order to safely and efficiently begin adopting blockchain or the tools it enables.

Read more from Forbes

 

 

Could cryptocurrency be the future of real estate buying?

In August 2014, a secret buyer contacted the realty arm of Martis Camp, a luxury real estate community in North Lake Tahoe in California, with an unorthodox deal: a purchase of land for 2,739 Bitcoins. At the time, the cryptocurrency that recently turned the Brothers Winklevoss into a pair of Bitcoin billionaires was worth about $580 per coin. Multiply that 2,739 times over, and the buyer paid $1.6 million for a 1.4-acre piece of land.

“Many of our buyers are in the tech sector and are early adopters of Bitcoin. We understand the importance of adapting to cutting-edge purchasing methods,” said Martis Camp sales director Brian Hull, who described the buyer only as a “Silicon Valley entrepreneur.”

That Bitcoin-financed real estate transaction was one of the largest, but it was not the first. Five months earlier, in March 2014, another secret buyer purchased a villa in Bali for 800 Bitcoins, or roughly the equivalent of $500,000. Two months later, a suburban home in Kansas City, Missouri, sold for the same amount. Last September, a buyer—identified only as working in the tech industry—bought a single-family home in Austin, Texas.

Most of these transactions involved the buyer converting Bitcoin into U.S. dollars to make the purchase—a liquidation of assets, much in the same way a first-time homebuyer might use investment dollars to afford a down payment.

Then, in late December, what was considered to be the first Bitcoin-only real estate deal went down when Ivan “Paychecks” Pacheco, co-founder of cryptocurrency website Bits to Freedom, transferred 17.741 Bitcoins ($275,000) to a seller to buy a two-bedroom condo in Miami. In early February, Bitcoin investor Michael Komaransky sold his Miami mansion in a deal where the buyer—again, anonymous—paid the $6 million listing price almost entirely in Bitcoins (455, to be exact).

Read the full article from Curbed

Will commercial real estate values fall? This is how investors can prepare

Will the commercial real estate market always go up? Of course not.

But investors have been spoiled by two decades of double-digit returns that were too good to last. In 2016, returns on institutional-grade property fell below a 20-year 10.1% average for only the first time since the Great Recession, and the latest Urban Land Institute’s Real Estate Economic Forecast puts estimated 2018 and 2019 returns around 6%.

Commercial real estate is cyclical, so it’s logical to expect a downturn at some point. But conventional wisdom holds that it won’t come soon. Colliers International’s 2018 Outlook on U.S. property markets says 2017 was the market’s peak, but the commercial real estate industry is expected to show continued growth, albeit at a more moderate pace, making a real estate market crash less likely.

Although the commercial real estate market’s outlook is still respectable, should investors be deterred by a potential decrease in returns from investment properties in the coming years? As the founder of a real estate investment firm, my informed answer is no. In fact, I believe investors should own private commercial real estate in every market cycle for the following reasons.

Read more from Forbes

 

As Rents Rise, Advocates in Multiple Markets Push for New Rent Control Laws

In most parts of the U.S., lawmakers are currently not allowed to create new rules to limit by how much landlords can raise rents at their properties.

In November 2018, voting ballots in California might include a question on rent control. Right now, California law restricts the spread of rent regulations on housing built after 1995, in addition to many older properties.

Some housing advocates want to change that. A proposed law that would have allowed more rent regulation died in the state legislature in 2017. Now advocates including the Alliance of Californians for Community Empowerment and the San Francisco Tenants Union are pressing the same proposal as a ballot initiative.

Read more from National Real Estate Investor

What Do Single-Tenant Net Lease Deals Offer High-Net-Worth Investors?

HNW investors are especially attracted to single-tenant net lease deals in the retail sector.

For more and more high-net-worth (HNW) real estate investors, dollar stores and drugstores make for a winning combination, although these assets can turn into losers if the sole tenant leaves.

Office and hotels still draw a lot of attention—and dollars—from HNW investors. But a rising number of them are betting on single-tenant net lease properties such as dollar stores, drugstores and fast-food restaurants to help round out their portfolios.

By and large, net lease properties are magnets for HNW investors because they’re viewed as safe, recession-proof assets that preserve cash flow and yield.

Read more from National Real Estate Investor

Trump, Real Estate Investors Get Late-Added Perk in Tax Bill

Lawmakers scrambling to lock up Republican support for the tax reform bill added a complicated provision late in the process — one that would provide a multimillion-dollar windfall to real estate investors such as President Donald Trump.

The change, which would allow real estate businesses to take advantage of a new tax break that’s planned for partnerships, limited liability companies and other so-called “pass-through” businesses, combined elements of House and Senate legislation in a new way. Its beneficiaries are clear, tax experts say, and they include a president who’s said that the tax legislation wouldn’t help him financially.

Read more from Bloomberg

Bitcoin Is Creeping Into Real Estate Deals

The real-estate industry is taking its first steps in adopting cryptocurrencies and the technology that backs them in what could eventually produce important changes in the way property is bought and sold.

While noticeable differences might be years or even decades away, several U.S. states already have changed laws to allow the technology to be used in property deals.

Read more from Wall Street Journal

Trump picks Jerome Powell to succeed Yellen as Fed chair

President Donald Trump nominated Jerome Powell to run the Federal Reserve once current Chair Janet Yellen’s term expires, in a move widely expected and one unlikely to disturb the roaring stock market.

Trump made the announcement during a Thursday afternoon ceremony in the Rose Garden.

The move follows an extended period of speculation over who would be named to head the central bank, whose aggressive policies have been considered crucial to a climate of low-interest rates, surging job creation, and booming asset prices.

Read more from CNBC

Trump Is Turning the Fed Pick Into a Reality Show

Before Trump was president, he was doling out brash criticisms and weekly drama on his reality television show, The Apprentice. Thus far, he seems pretty keen on bringing a similar flair, suspense, and tension to his presidency. Take, for example, his approach to appointing a new Federal Reserve chair—a choice that he’s been teasing the American public with for months.

Read more from The Atlantic

Bitcoin is finally buying into US real estate

Bitcoin is already in retail and restaurants — so it was only a matter of time before the cryptocurrency took on real estate. That time is now. Bitcoin is slowly making its way into closings on everything from Lake Tahoe land in California to Manhattan condos to single-family homes in the heart of Texas.

Read more on CNBC