enrichedrealestate

The Do-It-Yourself culture has made an impact on the world. Add the frugality mindset in the mix, and you have professionals scrambling to get noticed. Sadly, the same is true for real estate. Most people would choose to do things by themselves. Some have good reason to do so. They would save a little more money from not hiring a professional. Some would even venture to say that they can more accurately choose the property they want. Considering these and a few more reasons, should you hire a property management company? We have listed below some of the core functions of a property management company. This way, you can decide for yourself if you need one or if you should do the DIY path. They Maintain the Property A property management company does all the advertising and updating of vacancies of rental properties. They also negotiate, enforce leases, maintain, and secure the premises so that the properties will be of the optimal value for the seller. Keeps the Price ...

Commercial loan are often a major funding source for many real estate investors. These types of loans can really help your real estate business develop and grow. Newer real estate investors may not be completely familiar with commercial loans or how to acquire them. In this post, I want to briefly describe what a commercial loan is, why they are important for investors to use, and how to go about acquiring them. What Is the Difference Between Conventional vs. Commercial Loan? Conventional loans are the more ordinary, everyday types of loans that one applies for when purchasing a personal residence. A conventional loan is the traditional home mortgage. They can be acquired at almost any bank or credit union or through a mortgage broker. However, the bank, credit union, or broker that originates a loan of this type does not hold on to them. That is, they do not keep them and collect the interest and payments. Instead, they sell them to the secondary loan market to large ins...

Have you heard about Moore’s Law? Here’s a snippet of this theory. What Is Moore’s Law? Moore’s Law (named after Gordon E. Moore, one of the founders of Intel) alludes to Moore’s insight that although computer costs are cut down every two years, the number of transistors on a microchip increases twofold. We can further simplify this by envisioning that we can look ahead to acquiring an upgraded computer at a cheaper price every two years. For the general audience, this theory can be both perplexing and astounding. Especially when we can easily assume that the more advanced and modernized an invention, the more expensive it is. An Overview of Moore’s Law From the start, Gordon Moore did intentionally not create this law. He was only stating his observation upon seeing the evolving direction of Intel’s chip manufacturing. As it turned out, in due course, his observation became a prediction, which ultimately became the tenet known as the Moore’s Law. Moore’s Law in the Real Esta...

Home staging became a trend when the market crash left a huge number of inventory that were ripe for the picking. Most brokers stage houses to give clients a realistic feeling of living in the house. While this may seem like an unnecessary expense, the data shows that home staging actually has some positive effects. Here’s what we know: Buyers are willing to offer more money for a staged home. A majority of buyers feel that staging helps them visualize living in the house. Half of buyers feel that the chosen décor will influence their decision to buy the house. Realtors report that buyers are indeed affected by home staging, either positively or negatively depending on taste. Staged homes sell faster than empty homes. They are 50% more likely to sell than non-staged homes. Staged homes rarely drop in price because they sell fast. The longer a house is on the market, the lower the value becomes as time goes by. Staging homes increases the perceived value of the property. A cle...

Investing in real estate is tricky. You can’t simply decide to go for it one day without any knowledge and expect success. Aside from the basics, there is more to know, especially real estate cycles. If you’ve been dabbling in real estate, you’ve heard of the phrase before. So, what does it mean, and why does it matter? What is the Real Estate Cycle? A real estate cycle is a chain of recurring events in the industry that affect the market. Several factors influence a period such as demographics and economy. It’s widely accepted as a supply-and-demand concept. For example, a vacancy in a particular area is high. Building a new place for tenants will pay off because they need a new location. However, if the occupancy is high, it won’t be the smartest choice as people are already settled. But besides the local side of the cycle, there is also the financial side. The capital flow mostly influences it. Essentially, if many people want to buy properties, the prices will increas...

Every day, another person becomes a millionaire. Because of that, crazy real estate trends are popping up here and there. For example, the ultra-rich are buying high value real estate properties in Singapore, Hong Kong, South Korea, and many parts of Europe. People are actually buying castles, too. It’s not surprising that the next stage is buying an island. Why an island? It’s private, it’s usually a huge piece of property, and you can tell people you own an island. You can even apply to make an island a country if you have enough money. How are people buying islands? People seem to forget that once upon a time, very rich people in the 18th and 19th century bought large plots of land before the government started taking lands for themselves. These pieces of land were passed down from generation to generation. Most of these properties were bought or sold for a dollar, more or less, in those periods. Considering inflation, these properties haven’t increased to the point of insan...

They say that Generation Z is the future of the world. There are more Gen Z individuals contributing to science, the environment, communities, and even the economy. Gen Z people are big spenders because of their baby boomer inheritance and Gen X parents financial mentality. Millennials are not yet part of this conversation because their kids are babies. There is no name for that generation yet. Now, how does real estate affect Gen Zs. These people are more knowledgeable because they were raised in the age of information. Since they were children, they had access to the internet with high speeds that taught them many stupid things, but also many brilliant concepts. Examples include 11 year-olds building sneaker empires, 16 year-olds getting Nobel Peace prizes, 18 year-olds owning billion-dollar companies. This generation even has the highest number of scientists, both acknowledged and self-proclaimed. This generation will be richer than all generations combined, without destroying th...