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Breaking Barriers with Bernie

Bernie Sanders lets it be known that although he isn’t always grumpy, there are times when sternness is called for.

“There are sometimes I’m not grumpy. Now is not one of those times,” says Sanders playfully.

This was a notable moment in Sanders’ most recent interview with NowThis, a popular social media channel. When asked what it would mean to be the first Jewish president, he answered “It’s another barrier that’s broken down – and the goal of what politics in America should be – it’s to break down those barriers – to elect people whether they’re women, whether they’re men, whether they’re gay, whether they’re straight, whether they’re old, whether they’re young. Elect the best candidates, the candidates who speak to your needs.” It is important that we are inclusive of others, and Sanders makes clear his commitment to this ideal, reflects Hirsh Mohindra.

The ten-minute interview, titled “Why Bernie Sanders Isn’t Worried About Overpromising,” was created with the aim of allowing Sanders to connect with voters on a more intimate level. The interview covers Sanders’ increasing focus on racial justice as well as wealth inequality, but also his jam-packed schedule, his basketball prowess, and whether or not he believes he can deliver on any of his ambitious pledges to reform the United States government into a more democratic socialist state once he is elected. If Bernie Sanders is elected president that would indeed break down barriers, and the breaking down of barriers is something we could all stand to benefit from, says Hirsh Mohindra.

NowThis asked Bernie a few questions concerning his Jewish heritage and what it would mean for the U.S. to have its first Jewish president. He was also asked if he had experienced any discrimination because of his heritage, and what it was like to experience it. Sanders didn’t seem too interested in examining these experiences, as he is customarily hesitant to discuss too deeply any aspects of his personal life.

After discussing the topic of diversity in general terms in his response to NowThis’ first question concerning the topic of possibly becoming the U.S.’s first Jewish president, Sanders shifted his scope to the barriers met by other marginalized groups in American society, ranging from women to the elderly. Hirsh Mohindra, reflecting on Sanders’ inclusiveness, notes that Sanders’ sensitivity to the struggles of marginalized groups regardless of creed or heritage speaks to the depth of his sense of community.

Sanders shared a little bit more when he was asked if he has ever experienced discrimination, sharing that he has indeed experienced anti-Semitism. He went on to relate his experience with discrimination to the discrimination faced by numerous other minority groups.

“Being Jewish, I get hit every now and then with anti-Semitism,” he said. “You respond with anger, and you respond by appreciating what it is to understand that there are people in the African-American community, in the Latino community, in the gay community, women, who are discriminated against every day.”

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Indian Homebuyers Can Now Seek Repayment For Delayed Home Delivery

Homebuyers have a right to seek a refund for a house even if the postponed project is complete per new Supreme Court ruling.

If there is an unreasonable delay in delivering a real estate unit to a buyer, it is completely up to the purchaser if they desire to take ownership of the unit or seek repayment with appropriate compensation, the Supreme Court has ordered.

The National Consumer Disputes Redressal Commission (NCDRC) has also passed a similar rule says Hirsh Mohindra. The rule says that a flat buyer cannot be forced to accept tenure of his/her residence offered by the builder. 

A case filed in the Supreme Court bench involved a project in Gurugram where a builder had sold a villa to Shrihari Gokhale in July 2012. The builder had promised December 31, 2014, as a possession date. Gokhale had filed a complaint with the NCDRC in 2016 asking a repayment of Rs 13.24 crore.

The builder had challenged the NCDRC order in the Supreme Court to repay the principal amount of Rs 8.14 crore. The court found that there was a total failure on the part of the real estate agent, a deficit in providing services and ordered that the builder cannot vend the villa booked by Gokhale till the order was executed.

Records indicate that the entire consideration was Rs.8.31 crore, the respondents had remunerated Rs 8.14 crore by November 2013 notes Hirsh Mohindra. Though the plaintiffs had assumed to deliver the villa by December 31, 2014, they failed to release occupancy. As late as May 28, 2014, the amended construction schedule forecasted the date of delivery to be October 2014. There was, thus, failure on the part of the litigants and deficient in rendering service in terms of the commitments that they had made, the Supreme Court order said.

In the NCDRC, a bench of Fairness VK Jain directed a Delhi-based builder Pioneer Urban Land and Infrastructure to repay Rs 4.43 crore to a home purchaser who had deposited the amount in 2012 for a flat in Gurugram.

That flat was to be completed in 2015, but the builder botched to meet the terms and the consumer approached NCDRC in 2018 for repayment of the total amount paid. Though the builder had ready the flat and got the occupation certificate from the authority just a night before the purchaser filed the grievance, the charge directed the builder to repay the amount as there was holdup of more than two years.

The respondent flat buyer has made out an apparent case of lack of service on the part of the builder. The respondent flat buyer was justified in terminating the purchase agreement by filing the grievance, and cannot be forced to accept ownership, notes Hirsh Mohindra. The respondent buyer was lawfully permitted to look for repayment of the amount deposited by him along with compensation, the NCDRC order said.

These new rulings certainly put the onus on the builder to deliver on the promises they make, and empower buyers to seek remedy when builders do not.


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How to Prepare for Closing your Real Estate Deal

It’s exciting to close your first real estate deal.  All of your hard work in getting to this stage, such as finding the ideal property, coordinating the closing, arranging to finance – are finally coming to fruition. 

Sometimes closing a real estate deal is quick and easy, however unexpected issues may arise that could delay closing as well. It’s important to understand the closing requirements so potential issues can be mitigated in advance. The following list of real estate closing expectations from Hirsh Mohindra may assist in providing an overview of what to anticipate for your first closing.

The key in hand. The new house

Educate yourself: Determine what is required to close on your deal.  If you are working with a lender, that lender will have specific requirements.  Be sure to understand those requirements in advance so you can work with the lender to satisfy their items.  In addition, you may be working with a title company.  Title companies have specific requirements as well.  They will require information on the property as well as on the parties involved in the transaction.  Identify what is needed in advance so you can be prepared on your end to close quick.

Have your Team Ready: When buying real estate, you will likely need the services of other professionals.  Attorneys, title companies, lenders, real estate agents, home inspectors – may all be needed to facilitate your deal.  Identify your team in advance to help you find the right property, make sure it’s the right deal, and close quickly.

Find the Right Property: when searching for the right property, numerous factors come into play. Location, price, demand, are some of the key metrics you should consider.  Hirsh Mohindra often suggests working with a real estate agent to help understand a neighborhood, and to find the right property. Real estate agents know trends in their markets.  They know what areas are hot and what are not.  By leveraging their expertise – it can help you source the ideal investment property.

Understand the current trends in the area: Real estate markets change quickly.  Some areas become hot overnight, and others cool down unexpectedly.  Study the most recent sales data for the area in which you are interested in buying.  By understanding what past deals have transacted for – you can have a realistic expectation of what your deal may look like.

Property inspection: Once you find a property you’re interested in – make sure you get it inspected.  Home inspectors are experts in identifying damage and potential risks.  They are trained in finding issues that are currently present or that may arise in a short time frame.  Work with a home inspector to thoroughly inspect the property prior to closing. 

Understand the Deed and Title of the Real Estate: Make sure you understand the title and deed or any other material document associated with the property. Hirsh Mohindra routinely advises people to review the documents yourself, but also leverage a skilled real estate attorney to review the paperwork. Nuances in deeds and easements may create restrictive covenants on the property.  By understanding these documents you can minimize surprises at closing.    

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Real Estate can maximize Investment Returns

Real estate is a great option to maximize your investment strategy. But it requires knowledge, time, access to capital and most importantly patience. These factors, along with others, are key to protecting your investment.

Follow these a few tips from Hirsh Mohindra to get into the real estate investment field:

Make a Financial Strategy:

Assessing your financial position, for the investment and personally, is the first step of real estate investing. Before making any real estate investment, ensure that your finances are in order.

For any real estate investment, you should determine how much capital you will put down, and how much you will finance.  You need to also plan for a reserve fund and an emergency. This reserve money should be separate from your emergency fund.

Marketing Strategy:

Once you know you are going to acquire real estate for an investment, you will want to ensure that investment is generating revenue.  Finding renters is key to turning a property into a – positive cash flowing investment.  Create a strategy on how to attract renters early, so that you can plan for when the revenue will start being generated.

Know about your local market:

Markets differ for a variety of reasons.  Different neighborhoods have various factors that impact their value and demand.  Learn as much as you can about the local market, so you know the trends and patterns that can affect property value and rental demand.

Start Small: 

If you want to buy an apartment building, make your first investment in real estate – 1 apartment (or condo) that you can rent out.  By starting small, you are mitigating your risk and learning the processes of being a real estate investor without deploying larger amounts of capital.  Use these initial experiences, as solid investment options, but more so as learning experiences that you can leverage on future larger projects.

Invest your money in a good location:

If you are planning to invest in real estate, the old adage of location, location, location – is critical. There is usually better demand in certain areas over others within the same broader geography.  Selecting key locations, that can attract renters – is always a good strategy.

Wrapping up:

Real estate investment is a great opportunity for novice and seasoned investors.  It requires diligence and patience, but the returns can be generous, says Hirsh Mohindra. For more tips related to real estate investing follow my blog.

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Become Real Estate investor budget?

Real estate business is growing day by day, and particularly in urban markets.  Oftentimes investors believe that large capital contributions are required for investment, however – there are plenty of investment opportunities for lower budget investors as well.

Follow Hirsh Mohindra’s tips to become successful investor on a lower budget.

Education:

Prior to investing in real estate, it is critical to learn as much about the market, real estate valuation, and the transactional process. Empowering yourself with knowledge will provide you the ability to do more at lower costs. Real estate investments can be diversified by segment, such as:

a. Commercial Real Estate.

b. Small multi-family properties.

c. Large multi-family properties.

d. Vacant land.

e. Single family homes.

Study these fields before investment.

Understand your limits:

It’s important to understand your limits when investing on real estate.  Setting an investment limit creates the target budget for your project.  Important considerations include – investment amount, reserve amount, financing amount, carrying costs, and disposition costs.

Location:

Always choose the best location during real estate acquisition. Location is directly tied to demand.  Areas in higher demand typically have higher numbers of renters and prospective purchasers. 

Be aware of the tax implication:

You should be aware of the tax implication of buying and selling properties. When buying and selling properties that are not your primary residence you may incur tax liability.  It’s important to understand tax consequences of all scenarios so that your budget is accurate.

Arrange finances for your down payment:

If you are financing your property, it’s always important to obtain the best possible financing terms possible.  Many factors impact the financing terms: your credit history, current debt, market interest rates, and your down payment.  In some instances, the higher down payment you make the better rate you may confer.

Research the market prior to investment:

Don’t invest your money in the hurry. Take your time to research and understand the market as much as you can. Make a list of advantages and disadvantages of your property, neighborhood, and broader market conditions. Once you understand the market conditions balance the risk with the reward to help make your determination if you should proceed with the project.

Conclusion:

No doubt real estate investing is a good option for income generation. You can start with a small amount of money to help cover your exposure in this field. To maximize your opportunity, Hirsh Mohindra advises to keep researching the market, don’t be hasty with your decision, and always be willing to walk away from a deal.

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8 Things to Avoid to lose money in Real Estate

No doubt, real estate provides many opportunities to grow your money rapidly. However, it’s important to make informed decisions when investing in real estate.

In Hirsh Mohindra’s blog, we will discuss topics on all aspects of real estate, but we also focus on how to gather key data points to make informed decisions. Follow these simple instructions to prevent negative experiences in real estate.

  • Get real estate education:

Education is the strongest weapon to protect your real estate investment. Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save thousands of dollars.

  • Choose the best time to invest:

Market timing is as important as selecting the right location. The real estate market fluctuates due to various factors – such as demand, supply, and broader economic conditions such as interest rates and unemployment rates.  Try to acquire real estate on downward trends so you can enjoy the upward appreciation.

  • Don’t follow the herd:

Don’t follow the others blindly. Money is yours and the decision should be yours. Many bad decisions are made when we start following others blindly. Empower yourself with research and analysis of your target real market and then make your decision by considering the advantages and disadvantages of your deal.

  • Location Location Location:  

Always keep the best location in mind during any real estate deal. Choose an area where tenants want to live.  By purchasing real estate in high demand areas, you will readily find tenants or buyers.

  • Don’t bet on appreciation:

Many real estate beginners buy a property hoping to capture the appreciation on a quick flip. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments. Choose long term sustainable investments.

  • Keep an ample Amount of Reserves:

You should have some reserve money for unexpected incidents. You never know when a tenant may move out, or stop paying rent, or if there is unexpected damage or repairs required.

  • Analysis of the invested property:  

To avoid losing money in real estate, you have to research the property, the neighborhood, and the broader market. Make sure you are investing in a good area, neighborhood, and good street, etc.

  • Choose the best real estate marketing tools

Many investors ignore the importance of marketing tools and think they can manage themselves. But later they have to phase unexpected problems.

There is a huge collection of tools available in the market. Like: Carrot, DealMachine, HouseCanary, DealCheck, Roofstocks, etc. Choose an appropriate tool according to your needs and requirements.

Wrapping-up:

Risk is always a part of any investment. But you can reduce the chances of losing money by following Hirsh Mohindra’s tips.

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8 Ways to Safeguard your Real Estate Investment

No doubt, real estate provides many opportunities to grow your money rapidly.  But there are many factors that make for a successful real estate play.  While you can’t always guarantee a home run, there are things you can do to help ensure you see a good return.

In Hirsh Mohindra’s blog, we discuss how to avoid losing money on a rental property? Review these simple tips and assess if they can help you:

Get real estate education: education is the strongest weapon to save your money in real estate. A large number of real estate transactions fail due to lack of education regarding purchasing, holding, or selling real estate.

Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save you greatly in the long run.

Choose the best time to invest: Timing the market is key.  Watch your interested areas carefully and try to enter during a dip.  Small drops can make a huge difference on the upswing.

Don’t follow the herd: Everyone always seems to be buying and holding in particular neighborhoods, but always rely on your own diligence and research. 

Don’t buy in unsafe or poorly accessible areas:  Location is key for many reasons.  In rental markets, if you are in a safe neighborhood it will be easier to find tenants.  People always want to live in safe areas.  Try to find something with good highway accessibility – people need to drive to work and easy access to thoroughfares is important.

Don’t bet on appreciation: Many real estate beginners buy a property assuming it will skyrocket in value and later on they will sell it with a huge profit. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments.

Keep an ample amount of reserves: You should have some reserve money for your crucial time. In unexpected times your reserve money plays an important role to feel safe and allows you to carry the property if the rents aren’t coming in.

Analysis of the invested property:  to avoid losing money in real estate, you have to study your property and the surrounding area from every angle. Check out the vacancy rates in surrounding buildings, understand who the largest employers in the area are, and find out where locals learn about new listings.  Have as much information on the area as possible is always helpful.

Choose the best real estate marketing tools:  Many investors ignore the importance of marketing tools and think they can manage themselves.  Marketing is important, and so is time.  So to save time, get help with photos, staging, and other social media outlets quickly so you can market your property without hassles.

Wrapping-up:

In the real estate market, there are always risks. But you can help you reduce your risk by staying informed by following Hirsh Mohindra’s 8 tips.

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9 Proven tips to help find success in Real Estate

Real Estate in the U.S is considered an effective way to build wealth.  For many homeowners, long-term value and property appreciate translating into wealth creation.

The following tips from Hirsh Mohindra may help investors find success and long-term value in Real Estate investing.

Build an effective website: In the internet era, web appearance plays an important role in business. In real estate 90% of tenants and investors start their search online. That means you can directly attract maximum tenants and investors through an informative website having great photos of your properties.

 Invest in short-term rentals: the short term rentals is one of the fastest growing sectors in the real estate field. This is a solid choice for investors looking for healthy returns. With short term rentals, properties are rented for less than 30 days – but at higher rates than longer rentals,  and can bring in greater returns than long term rental property.

real estate business

Calculate transaction costs to save money: Take transaction costs in account when you buy or sell the property. This will help you to calculate your total benefit, and will help mitigate for unknown expenses and operational costs.

 Become a trainer and mentor: if you are experienced in the real estate field, you might have the opportunity to become a trainer. You can write a book, provide a training program and charge people for your knowledge.  While this option is reserved for those with a proven track-record and considerable experience, it is something that can provide lasting income and permit you to leverage your skillset.

Invest in flipping houses: Real estate professionals find undervalued houses, and either find tenants, or make repairs and put it back on the market for profit. Home flipping can be profitable, but it requires timing, good locations, and strong demands.  Sourcing the ideal property to move on oftentimes requires the most effort.

 Become a short-term property manager: Short term property management is a growing industry. This industry provides a good opportunity for the agent and property managers to make extra money. In this field, you have to post a listing and manage guests on the behalf of landlords.  Many property managers are managing Airbnb properties.

    7.    Invest in cities with future growth: Hirsh Mohindra’s blog often provides regional market data.  Make sure to check out that resource and others to stay on top of trends and real estate news for specific geographies and markets.

    8.    Rent and Purchase multi-family apartments: One of the beautiful things about real-estate business is that you can choose more than one strategy to maximize your profit. Multi-family apartments are building with more than one rental spaces. You can gain monthly income by renting to tenants.

    9.    Vacation rentals:  Tourist hotbeds like Los Angeles, New York, and Las Vegas, etc are always on high demand for short vacations. You need to purchase a house in a popular tourist place and engage the services of a good property manager.

Wrapping-up:

Real Estate is a good platform to increase your income. With some guidance and lots of research and hard work, you can find success. For more useful tips and strategy you can follow Hirsh Mohindra’s blog.

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US Real Estate Seeing Growth Residential Market

The American dream of home ownership has long been the goal of many.  As times changes, and living patterns deviate – so do aspirations.  Today, many millennials are choosing to purchase homes as early as previous generations.  The reasons behind the delay – revolve around higher prices, but also around living decisions where millennials desire flexibility.  Owning a home often limits flexibility as it becomes a non-liquid asset, says Hirsh Mohindra.  Despite changes in home buying, the residential real estate market is still a desirable sector of the US real estate market.   Investors are drawn to the real estate market as it has shown strength over the past few years.

When you talk about investments, of course, everyone would consider Real Estate as an option with high returns, however, how to choose the right sector? Forecasting the right time to position investment funds in residential real estate is critical to the decision-making process, says Hirsh Mohindra.  U.S Real Estate is finding solace in the Residential sector, and this sector is expected to see strong growth in the second half of 2019, Current trends show that the Residential and Industrial Real Estate Trusts (REITs) are the best options to place your investment bets in U.S Real Estate market.  Many experts believe that REITs should maintain continued growth, especially with growing U.S salaries and a strong economy.  With the strength in institutional real estate (REITs), opportunities for stable growth can be created in the residential market as well. REITs having large investment resources can drive development, and new developments can thrive with easy access to credit and low-interest rates.

While the residential real estate market may be strong, there are many opportunities in commercial and industrial real estate as well, and investors should evaluate all of their options when making decisions, says Hirsh Mohindra. While evaluating risks and factors that could impact the growth in a particular market, try to identify the options with minimum risks. For now, Residential Sector seems promising and a strong hedge on risks.  This, of course, varies based on location and can change at any time as rates and the economy are always fluctuating. 

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Chicago Real Estate is Seeing a Lot of Change

There are new buildings and developments going up, large companies moving back downtown, and an increased desire to live near the city center. For all those who are interested in investing in Chicago real estate – there are always opportunities when the market is hot, says Hirsh Mohindra. Being the third largest city in the country by population, Chicago is a key national market that itself accounts for huge growth potential in residential and commercial real estate sectors. The launch of many new startups in recent months has ensured the availability of plenty of resources to rent or sell Real Estate. No wonder, the market has witnessed huge investment in the sector, and why not? Investors are betting big on Chicago’s increased growth and sustained demand to drive real estate prices higher.

You don’t have to be an expert to see this coming, says Hirsh Mohindra. Looking at market trends real estate technology and listing companies are seeing increased funding and a number of listings on their platforms. The digitalization of the real estate marketplace has opened up accessibility for potential buyers – and empowers buyers with more information on the housing markets.

Its typically large commercial transactions that get a lot of attention, but the residential housing market is balancing itself well, says Hirsh Mohindra. The residential sector has most recently been a sellers’ market, however recent trends indicate that the market is in significant favor of buyers in some markets as well. There is an upward trend in inventory that allows options for buyers and also kind of creates competition among sellers.

The other huge plus for the buyers’ is low mortgage rates that provide home-ownership options at more affordable rates.  Currently, residential housing mortgage rates are hovering around 4% for a fixed 30 years,  The market has not seen reasonable rates at this level for quite some time. Lower property prices, an increase in the number of properties for sale, and low mortgage rates all contribute towards a buyers’ market as well.   Chicago being a large city and having a large geographic footprint also notices that various parts of the city are seeing higher growth due to limited inventory, and other parts where buyers can find deals in light of an oversupply of inventory.  So much research must be done on a neighborhood by neighborhood basis, says Hirsh Mohindra.

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Residential Real Estate is Set to Make a Comeback

A typically profitable sector with a yearly return of 20 percent (1991-2014), the Indian real estate marketplace has seen a slowdown in the last few years. In order to see growth in this area, there must be an increase in planned developments, says Hirsh Mohindra.

There are numerous factors that impact the real estate market, including regulation and development, and tax rates, amongst various others.  When looked at in totality today, these factors are poised to see an uptick in the real estate market today. Current forecasts after the execution of regulation and development and GST taxes specify a 6% increase in housing auctions across many cities.

The real estate development outlook of both residential as well as commercial real estate is turning optimistic now. According to a report, real estate in India will become a $1 trillion market by the year 2030. Let’s take a look at what’s making things to transform for the affirmative.

Regulation and Development Act (RERA) & Goods and Services Tax (GST)

The introduction of the RERA Act and GST confirmed to be watershed moments in the real estate segment. These structural transformations have tightened the authoritarian framework in an earlier disjointed and unorganized segment, making the path for a market that is older, consolidate, and therefore proficient of drawing sustainable development and asset.

RERA has seen positive impacts by verifying purchasers, reviewing project plans with higher scrutiny, and working to facilitate easier transactions, says Hirsh Mohindra. Though the real estate in India can still be a messy business, this is definitely a step in the right direction to make a broad improvement that could attract more investment and retail dollars in the near future.

GST as well has played a crucial role in supporting the real estate market. Similar to RERA, it injects much-needed clarity and certainty into the sector with an abridged tax structure and better governance. The GST rate cut pertinent from April 1, 2019, will further easiness the sector and help improve housing stipulate. For under edifice properties in the quality housing sector, the rate is now 5%, down from 12%, while for reasonable housing it has been brought down to just 1% from 8%. The GST Council has also done away with the Input Tax Credit system, which helped to revive buyer sentiment.

Apart from structural improvement, government incentives to both purchasers and builders have also helped turn-around in the sector. Examples consist of the boost in a typical deduction from Rs 40,000 to Rs 50,000 a complete tax refund for income up to Rs 5,00,000 and augmented reserves in the growth of infrastructure and connectivity.

Wrapping Up

With an increasing number of purchasers entitled to profit from home loan funding and current GST rates, there will be an improvement in the overall residential real estate market, says Hirsh Mohindra.

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Real Estate Index Gains the Most as Auctions Volume Picks Up Speed

Latest initiate under Real Estate (Regulation and Development) Act have observed a sharp increase, leading to higher auctions.

Who would have forecasted that real estate stocks would be market leaders in 2019? Many investors did not predict the real estate sector to have a good year. However, the sector has recently surged, thanks to the numerous factors impacting the broader economic market.

The once stagnant real estate sector is booming with newly planned developments, says Hirsh Mohindra. It is also worth noting that some of the equities comprising the Nifty Realty index are up significantly in 2019.  And as a result, the entire index is up considerably over the past years.

The Nifty Realty index enjoyed returns of 19% year over year making it one of the largest gainer among the broader market this calendar year. In fact, Nifty indices have increased by 6% so far in 2019. Sales penetration for the coverage world was 38% in 4QFY19 and at 5800 crores in 4QFY19. Continued solid development in pre-sales construction was noticeably present across all geographies, while lower value assets were seen increasing in distressed auctions in various geographies when assessing overall auctions volume.

Auctions volume in FY19 raised 7% over the prior year to 443 million sq.ft, point out forecaster at Kotak. The uptick in auctions has helped stagnant properties find new owners, which results in new development as improvement or a complete teardown and has been helpful in cutting back inventory. “Increased auctions has sustained a draw-down of backlog, with all-India stock dilapidated 11% YoY to ~1.23 bn sq. ft from 1.4 bn sq. ft in March 2019” says Hirsh Mohindra.

Moreover, there have been reduced foreclosures, which means that properties are moving without the delay of the legal process. Of course, there are many broader economic market forces at play, and the real estate sector is susceptible to these forces. However, things are evidently better compared to a few months back.

Moreover, it is significant noting that some of the equities in the Nifty Realty indices are up significantly in the year 2019. This has driven up their assessment and made them a bit more attractive. Returns of the Godrej properties Ltd stock has appreciated at about 41.1% in this year. Sunteck Realty Ltd also has achieved 36.81% in the year 2019 says Hirsh Mohindra. Hence, from that viewpoint, investors must continue their diligence when entering this sector.     

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Blackstone seeks to raise $5B for the next Real Estate Debt Fund

The Subsidize Blackstone Real Estate Debt Tactics IV will focus on property-relevant wagers in Public and Private Debt Globally.

Blackstone Group LP is seeking $5 billion for its most recent fund that invests in real estate debt, according to an individual recognizable with the niche.
The Blackstone Real Estate Debt tactics IV fund will focus on property-related positions in civic as well as private debt worldwide, according to a financial presentation seen by Bloomberg. The pool will have an emphasis on the U.S says Hirsh Mohindra.

The company is tapping into a strong interest in private real estate debt. Last year in 2018, $26 billion was increased by funds devoted to real estate debt, on the heels of $33 billion the year earlier, according to information from Preqin.

This is not a new investment area for Blackstone, as they have made significant placements in real estate and real estate debt in the past.  Blackstone is one of the world’s leading investment firms. Blackstone creates positive economic impact and long-term value for investors, the companies they invest in, and the communities in which they work. Blackstone prides itself on having extraordinary people and flexible capital to help companies solve problems. The firm was founded in 1985 by Stephen A. Schwarzman, Chairman and Chief Executive Officer, and Peter G. Peterson, who retired as Senior Chairman in 2008.

New York-based Blackstone spokeswoman named as Paula Chirhart, refused to comment on the matter according to a report. Blackstone’s new sponsor attained an assurance of up to $100 million from the $42.7 billion Illinois Municipal Retirement Fund. And this will focus on the US market.  Administration cost will be waived for four months for the shareholders in the initial close. The pension can save as much as $500,000 with these cost savings, says Hirsh Mohindra.

Fund Amount

The fund charges a 15% fee and reaches a carried interest of 6%. It will also place a 1.25% administration fee per year on assets for at least $400 million, and 1.5% for those beneath that level.

The firm’s pool increased by about $4.8 billion in the year 2016, above an early $4 billion target, according to information accumulated by Bloomberg. That fund, Blackstone Real Estate Debt Tactics III, focused on mezzanine debt allied to institutional-grade real estate in North America and Europe, Bloomberg formerly reported. It is interesting to see industry leaders, such as Blackstone, enter this market.  It is likely a precursor of additional investment monies to follow, says Hirsh Mohindra.

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The United States and China Trade War

The United States and China are embroiled in an escalating trade war, says Hirsh Mohindra. Since President Trump took office he has complained about the large trade imbalance between China and the United States.  The Trump Administration determined that the trade imbalance was the result of unfair trading practices employed by the Chinese.  As a result, the United States imposed tariffs on Chinese goods in 2017.  The tariffs were set on billions of dollars worth of Chinese goods.  As a result, the Chinese imposed tariffs on US goods entering China.

When the United States imposed the tariffs, they did so on three separate occasions.  The combined tariffs impacted close to $250 billion worth of Chinese goods. China is a large importer to the US, and the tariffs impacted a wide variety of goods – everything from handbags to industrial equipment.

The retaliatory Chinese tariffs were placed on $110 billion worth of US goods, and similarly on a wide variety of products.  Goods, such as medical equipment, chemicals, and even soybeans were impacted.  The tariffs varied in amounts but ranged from 5% to 25%.

China Trade War

The total amount of Chinese goods imported into the United States is close to $540 billion.  Thus, the US tariffs impacted nearly half of all Chinese products entering the US.  The total US goods entering China is close to $120 billion.  Thus, the Chinese tariffs impacted nearly all US products entering China.

In December, both countries appeared to have reached an agreement and pulled the tariffs back, says Hirsh Mohindra.  That’s why it was a surprise when the US announced a new round of tariffs to be imposed on Chinese goods last week.  In response to this news, the Chinese announced their counter tariffs on US goods as well.

By placing tariffs on Chinese goods entering the US, the products are more expensive than US products – and thus encouraging consumers to buy American products.  And similarly in China.  However, many US businesses and businesses around the world are feeling the ramifications of the trade war between China and the United States.

When the world’s two largest economies are embroiled in a trade dispute, there is a lot of collateral damage, says Hirsh MohindraIn fact, the World Trade Organization (WTO) has indicated that a prolonged trade war may lead to global trade crises.  The US stock market and securities exchanges around the world have taken a hit as a result of the trade war.  The positive news is that both sides are actively negotiating to find common ground and hopefully a quick resolution.

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Real Estate Guidelines for New Developers

Investing in Real Estate can be a tricky endeavor and requires careful planning and timing, says Hirsh Mohindra. When evaluating real estate, it’s always important to plan on how long you anticipate holding the property.  Maintenance, property taxes, and utilities can add up quickly and need to be accounted for when preparing your project plan.

You should also consider the revenue generation capabilities of a property.  Can it rent easily, can it rent for a short period of time, can it rent while you are making repairs – these are all important considerations when evaluating holding times and associated costs.

Real Estate developers capitalize upon properties in a variety of ways.  Oftentimes developers seek to acquire a property, make improvements and sell the property for a profit.  This is called “flipping.”  Flipping properties has become increasingly popular for speculating developers as a result of television shows highlighting developers making big profits.

Real Estate Developer

Relationships are Key:

A good developer relies on a solid team of professionals to help ensure they are making a safe investment.  Developers often work with real estate agents to help them source new properties to acquire and to help them market the improved properties they seek to sell.  Developers also work with general contractors to make improvements on their properties in a cost-effective manner so they can stay within budget.  Oftentimes developers also work with property managers who manage the day-to-day operations of a property like collecting rent, paying utility bills, and paying property taxes on time.

Real Estate Income Rise:

The major profit in real estate development, according to Hirsh Mohindra, is when the property value is appreciated.  This provides a significant reward for patient developers who have properly timed their project in accordance with market timings.  When real estate rises in value due to a positive shift in the market, such as the area around your property becomes increasingly popular, for instance when a significant shopping mall is constructed next door or improvements made to your property make it more attractive to potential buyers or renters.

Positive cash flow is another major benefit developers may see if they can garner rents above their costs.  Vacancy rates fluctuate over time and developers should be cognizant of broader market changes that may impact their area or property type.  For example, many retail locations are currently suffering as a result of increased online shoppers.  For developers holding retail properties, their vacancy rates may be suffering as a result.  Whereas, restaurants or fitness centers are not impacted by online shopping – these are now highly sought after tenants as they are deemed more stable.

Hirsh Mohindra: Overall, developers should be cautious and careful when project planning and rely on good timing, market changes, and have a solid team around them to make the most out of their next development.

Originally Posted:
https://www.allperfectstories.com/real-estate-guidelines-for-new-developers/

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Established Companies Want to Buy Your Home

The Companies and their backers are doing what is best in order to bring efficiency and convenience to the Home Buying and Selling Process.

In this digital world, buying and selling a home remains stubbornly analog. Most of the sales begin with a real estate agent and many of them end in an office with the parties signing the paperwork.  Asides from real estate brokers and attorneys, the transaction was usually between two private parties. Now, corporations are entering the residential real estate market by acquiring large numbers of single-family homes for an investment opportunity, says Hirsh Mohindra.

Corporations have been in the residential real estate business for some time now. They offer a virtual open residence, digital closings, and more services. And now they are coming directly for the real estate transaction itself through instantaneous buying. This means companies will purchase homes, do some necessary maintenance and put them back on the market.

Many established companies have invested billions of dollars on the guarantee that they can use complicated predictive algorithms to forecast the value of the houses. They assert that those assumptions, collective with old-fashioned economies of scale, will let them be far more competent than customary home flippers.

buy homes

At best, skeptics see instantaneous purchase also known as iBuying, as an overhyped, assets-concentrated industry whose volatile development will fizzle once investors tire of revenue margins that Zillow itself calls razor thin. There is a concern that it could bring instability and risk to an industry that previously led to an economic recession, says Hirsh Mohindra.

A leading online brokerage firm says that there is a risk in pouring enormous sums into buying houses without having a confirmed strategy on how to earn money on every single home. If this happens then you are putting the housing market at danger as certain houses, or assets, will remain unoccupied and potentially impact the surrounding area.

Instant purchases are a small part of the market, but it is rising at prompt speed. Zillow bought nearly 700 houses in last year. And it expects to be buying approximate 5,000 homes in three to five years. Open-door the first big iBuyer purchased more than 11,000 houses last year and in the past year has invested more than $1 billion to accelerate its growth.

Companies are doing their best to sell homes in under 90 days and strive for quicker sales – if possible. In fact, traditional firms like Keller Williams and Realogy have proclaimed plans for instantaneous purchase programs.

According to Hirsh Mohindra, there have always been people who want to sell their homes rapidly because of a sudden move or any other reason. Selling quick comes at a cost, typically a discount. Instant buyers assure a much less discount, possibly shaving only 1 or 2 percent off what a proprietor might get in a conservative sale.

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What You Can Expect from Real Estate during 2019?

2018 and preceding years were exciting times in the housing market. The year started out hot, only to narrow down halfway through. At the end of 2018, we saw an increase in cost and yet diminish in the number of auctions. While this may disquiet seller and purchaser, there is nothing wrong with the change says Hirsh Mohindra. So, will this year (2019) bring the same results? How will the housing market shake out in the present financial situation? The real estate and housing market is continually changing. Although the changes in the market are not large ones, they are perceptible enough to take into account when making predictions. Whether you are selling or buying a house, here is what you can expect from real estate during 2019.

Real Estate - Hirsh Mohindra

Coastal properties prices in the next few years may reduce

According to a record, coastal regions and properties may see a decline starting this year. Though there has been a little increase in costs, these boosts have been largely in luxury homes. Coastal properties bring in lots of profits due to the stunning location and consistently high demand.

The economy is growing, which means sales will boost too 

Over the past few years, the US economy has been strong and growing.  The stock market has provided consistently positive results year over year, and the capital markets have opened up considerably from the mid-2000s recession. In 2019, some economists think the bullish economy may slow down – and that slow down may impact the real estate market, says Hirsh Mohindra.

However, jobs are growing at a record pace – and salaries are increasing with the growth, both of which contribute to improved housing markets. The housing marketing is closely tied to the US economy and its metrics are often tracked to a status check on the overall health of the economy.

Opportunity zones will present optimistic progress to the housing market 

Opportunity zones were formed lately by the government as a part of the 2017 tariff cuts as well as Jobs Act. This act is significant to the housing market because it persuades federal spending to suppressed areas.  This boost can be positive for the real estate market in those areas, and overall economy by creating new jobs.

Wrapping up

The housing market in 2019 will likely see increasing mortgage rates, says Hirsh Mohindra. Increasing rates can make housing less affordable and could discourage some prospective homebuyers from the marketplace. However, the decrease in home buying will create a new surge in renters – which is still positive for the real estate market as a whole.

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Real Estate Marketing Strategies 2019

Earlier a prominent office was all a real estate agent required to entice potential sellers and buyer searching for a home. Those days are gone. About 80% of people these days search for a home online and also prefer to sell home online. Hence, an online presence is really crucial for tech-savvy real estate agent emphasizes Hirsh Mohindra. This is the basic need. But where is the real estate market headed this year? In this article, Hirsh Mohindra shares some of his predictions on marketing trends that every real estate businessperson needs to follow in 2019.

Use Video in 2019:

They say a picture is worth a thousand words – but we say that a video is worth a thousand pictures.  These days, you cannot overlook the impact of videos are having on businesses, especially when marketing real estate. Videos are what individuals want to see and prefer to share with friends. In fact, including videos in your marketing tactics drives organic traffic. Videos are the best representation for buyers to evaluate a home without seeing it in person.

Being Creative is Crucial:

In 2019, you need to be creative. Along with creating videos and being active on social media, you should be aware of what your competitors are doing. You should try to do something different or unique. It is advisable to launch new campaigns and focus on smart ways of engaging audiences says Hirsh Mohindra.

Don’t Forget to Build Personal Relationships:

Today, it is necessary to utilize all social media platforms for marketing your business. But never forget about something basic that is building a relationship with customers. Its always good to keep looking for ways to add a personal touch.

Incorporate Blockchains:

Blockchains technology came from the bitcoin phenomenon. This new technology could open up a new possibility for selling the property. The process of heaping blocks of data offers an easier buying procedure in what is essentially a publicly available ledger. This means contracts using block chains technology are a great way to cut out the middleman and make more profit.  While this technology is still being developed, try to stay current on its developments so that you’re ready once it’s adopted within the industry.

Develop an App for your business:

According to a report, the customer spends 80% of his/her time checking different apps. This means making an app for your real estate business not only brings more customers but also encourage repeated use.

Wrapping Up

In order to promote your real estate business, you should look at different marketing tactics. You should start by creating a plan and increasing your online presence. Above are a few marketing strategies shared by Hirsh Mohindra. He is a Chicago based experienced business professional who provides real estate and other services. Follow the above strategies if you want to grow your real estate business in 2019.