El Paso Investors Club ©

BY BRAD BECKETT ON OCTOBER 14, 2018

Millennials are about to become the largest generation in history and with that their choices and buying patterns continue to influence the U.S. economy.  A recent study by RentCafe recently took a look at where millennials are living and where the next potential hot spots are located.  They ranked the zip codes of the 30 biggest U.S. cities buy the highest increases in millennial population over a 5-year period.  They found (probably to no one’s surprise) that downtowns and areas near downtown are the clear favorites for millennials living in big cities.

“…this generation that values experiences more than material possessions prefers vibrant, walkable city neighborhoods where things are happening. Plus, with jobs increasingly relocating to urban cores and Generation Y making up most of the labor force, the residential areas in and near urban downtowns appear to be an increasingly popular choice…”

BY BRAD BECKETT ON OCTOBER 14, 2018

According to new data from CoreLogic, mortgage fraud is on the rise as more people lie about their income in order to qualify for loans.  CNBC’s Diana Olick reports that loan applications for real estate purchases are more likely to have fraud than for refinancing because higher interest rates have slowed refinancing activity, making mortgages a larger share.  In addition, Fannie Mae says tips are on the rise from law enforcement, consumers, trade groups and lenders.  Olick points out that the internet is making it easier and that a casual search reveals many online services that, for a fee, will not only generate fake pay stubs, but will also answer phone calls that “confirm” your purported income.

Click here to read the full story on CNBC’s Realty Check.

BY BRAD BECKETT ON OCTOBER 14, 2018

Is ecommerce giant Amazon entering the home building space?  A recent report on CNBC says they’ve recently taken a stake in Plant Prefab, a Southern California company that builds prefabricated custom single and multi-family homes that uses an automation in an attempt to keep costs low.  The investment was made by their Alexa Fund and follows Amazon’s launch of over a dozen new smart home devices powered by their Alexa platform.  By the way, these aren’t your normal run-of-the-mill prefab homes.

“Voice has emerged as a delightful technology in the home, and there are now more than 20,000 Alexa-compatible smart home devices from 3,500 different brands,” Paul Bernard, Alexa Fund’s director, said in a statement on Tuesday. “We’re thrilled to support [Plant Prefab] as they make sustainable, connected homes more accessible to customers and developers.”

BY BRAD BECKETT ON OCTOBER 14, 2018

According to the latest ATTOM Data Solutions Foreclosure Activity report, nearly one in every 2k U.S. properties had a foreclosure filing in August, 2018.  According to the report,there were 70,166 U.S. properties with foreclosure filings in August, up 9% from July and down 7% from one year ago.  The states with the highest foreclosure rates were New Jersey (one in every 690 housing units); Maryland (one in every 918 housing units); Nevada (one in every 984 housing units); Delaware (one in every 1,012 housing units); and Florida (one in every 1,229 housing units).

BY BRAD BECKETT ON OCTOBER 6, 2018

Fire Prevention Week runs October 7-13, 2018 and the best way to celebrate is to check all your properties’ smoke alarms for functionality and age.  If you find one that’s more than 10 years old, it’s time to replace it.  And when you do, National REIA recommends both ionization and photoelectric technologies be used in all your properties.  You should also have a working & tested carbon monoxide detector and fire extinguisher in each unit as well.  In this case, an ounce of prevention is worth a ton of cure!  Today’s infographic also reminds us to “Look, Listen and Learn” because fires can happen anywhere…..Happy Friday!

BY BRAD BECKETT ON OCTOBER 6, 2018

CoreLogic recently released their Market Pulse Report for September, 2018 where they provide a lagging indicator snapshot of the U.S. housing market through July, 2018.  Among their findings, how disasters & housing affect the economy, home mortgage payments up 15%, how states are seeking loopholes to counter the federal SALT deduction and understanding the risks a volcano poses.

BY BRAD BECKETT ON OCTOBER 6, 2018

What exactly are these “Opportunity Zones” that were created in the Tax Cut and Jobs Act of 2017?  A recent article in HousingWire gives readers “the skinny” about these overlays and suggests they “are probably the buzziest potential solution for the affordability crisis and local economic stimulus out there at the moment.”  They also report that the program is meant to encourage investors to reinvest their capital gains and those can come from any investment – stocks, bonds, real estate or partnership interests.  In addition, they explain how they work, who benefits and how they might revitalize struggling communities.  Indeed…

“To qualify for the opportunity zone tax breaks, investors must invest their capital gains in an Opportunity Fund Zone within 180 days of receiving those gains. The money cannot be invested directly into a property, and funds must invest 90% of their capital into opportunity zone properties.”

“If they do this, shareholders will be rewarded with tax breaks based on how long they keep the interest in the funds. Shareholders who keep their investments for five years will pay no taxes on 10% of their gains; at seven years they will pay no taxes on 15% of gains; and if they hold their investments for 10 years, they pay no taxes on their gains at all.”

Click here to read the full story on HousingWire.com.

BY BRAD BECKETT ON OCTOBER 6, 2018

The definition of what is normal wear and tear in a rental can be somewhat subjective at times. That’s why veteran landlord and property manager Hank Rossi answers questions from other landlords and property managers around the country about their rentals.

Hank Rossi

About the author Landlord Hank: “I started in real estate as a child watching my father take care of our family rentals- maintenance, tenant relations, etc , in small town Ohio. As I grew, I was occasionally Dad’s assistant. In the mid-90s I decided to get into the rental business on my own, as a sideline. In 2001, I retired from my profession and only managed my own investments, for the next 10 years. Six years ago, my sister, working as a rental agent/property manager in Sarasota, Florida convinced me to try the Florida lifestyle. I gave it a try and never looked back. A few years ago we started our own real estate brokerage. We focus on property management and leasing. I continue to manage my real estate portfolio here in Florida and Atlanta. “ Visit Hank’s website here.

BY BRAD BECKETT ON OCTOBER 6, 2018

National apartment listing site ABODO recently reported that the median nationwide rent price for one-bedroom units in October dropped slightly to $1,020 (down 0.2%) with two-bedroom units coming in at $1,269 (down 2.7%).  ABODO uses over 1 million listings across the United States to calculate the median 1-bedroom rent price by city, state, and nation and then track the month-over-month percentage change. To avoid small sample sizes, they restrict their analysis to cities meeting minimum population and property count thresholds.

“The economy is hot, unemployment is low, and inflation is beginning a more rapid increase. All these factors lead us to believe that rents are not going to fall swiftly any time soon.”

BY BRAD BECKETT ON OCTOBER 6, 2018

The U.S. government is reporting that total construction spending in August was estimated at $1,315.5 billion, which is 0.1% higher than July’s revised estimate and 6.5% higher than August, 2017.  Residential construction was at a seasonally adjusted annual rate of $548.9 billion in August, 0.7% below July’s revised estimate.