Economic Outlook Breakfast

Join us live at our 2023 Economic Outlook Breakfast for two dynamic speakers. Dr. Anthony Chan will join us again by popular demand, along with Dan Seals, CEO of Intersect Illinois. Both speakers bring data to life through a national and state-wide lens. Join Mainstreet for this powerhouse presentation that is sure to provide informational content to use throughout the year.
https://www.succeedwithmore.com/calendar/economicoutlook23/

FREE Comprehensive Intro to Commercial Real Estate Course

Join us via Zoom for our Comprehensive Intro to Commercial Real Estate event on Jan. 10! Professionals from every sector of the industry will share their knowledge as we explore the fundamentals of commercial real estate.

Date: Jan. 10, 2022

Start Time: 7 a.m. PT / 10 a.m. ET

Location: Zoom Webinar

The Comprehensive Intro to Commercial Real Estate course will focus on training new professionals with the basic skills and knowledge needed for a successful career in commercial real estate, including a detailed look at the different product types, services and technology you need to succeed, as well as industry trade groups you can tap into, and more.

We’ll also be covering renewable energy with experts from Qcells and IREM.

Add it to your calendar: Google Calendar Outlook Calendar Yahoo Calendar

 

Interested in Joining eXp Commercial?

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https://www.creconsult.net/market-trends/free-comprehensive-intro-to-commercial-real-estate-course/

Off-Market Multifamily Sellers Are Leaving A Ton Of Money On The Table

Off-Market Multifamily Sellers Are Leaving A Ton Of Money On The Table

Marketing a property can increase the sale price by up to 23%, which runs counter to the idea that off-market deals can achieve higher values because a buyer will be more aggressive to seal a trade.

The perception is when a seller has one buyer vying for an asset, that buyer is more aggressive and willing to pay a premium because they don’t want the seller to get into a bidding war for the property. Our research found the opposite.

This is a sign it is in the best interests of owners to undergo a marketing campaign for their properties. Growing allocations from institutional investors toward real estate are still driving a sizable pool of investors into bidding for multifamily assets, and a full campaign is what drives the premiums.

The job of a broker to create a competitive environment on behalf of the seller. Putting a building on the market determines the strongest buyer.

That may not be necessarily based on price alone. If one buyer has a higher-priced offer but weak financial backing, versus a buyer with a stronger track record, taking a lower offer is the way to go. It’s our job to give the seller those options and we do that by marketing properties and generating the highest number of qualified offers possible.

There are numerous case studies where a seller received an off-market bid, put it on the market, and the off-market buyer still bought the asset but at a higher price.

 

Have you thought of selling your property and would like to know what it's worth? Request a valuation for your property below:

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https://www.creconsult.net/market-trends/off-market-multifamily-sellers-are-leaving-a-ton-of-money-on-the-table/

DMG Capital acquires multifamily portfolio in Orland Park

DMG Capital, the multifamily investment affiliate of Chicago-based Daniel Management Group (DMG) completed the acquisition of Alice Mae Court, a multifamily townhome portfolio in Orland Park, Illinois, for $5.36 million. Alice Mae Court will be marketed by DMG affiliate DMG Leasing and professionally managed by DMG.

“This acquisition allows us to strategically add rental townhomes to DMG Capital’s multifamily portfolio while at the same time maintaining our disciplined investment focus of pursuing properties that are well-located with strong revenue growth potential,” said DMG Capital President and Co-Founder Roger Daniel. “Alice Mae Court is an optimal opportunity as it is new, high-end construction that is well-located in highly desirable Orland Park directly across from Centennial Park and just steps from the 153rd Street Metra Station.”

Alice Mae Court consists of 16 townhomes with a mix of large three- and four-bedroom units that include high-end finishes throughout, in-unit laundry, private balconies and attached two-car heated garage parking spaces.

The Alice Mae Court townhomes directly address the post-COVID demand for flexible living spaces that allow residents to live and work at home and have greater access to the outdoors. It also exemplifies the increased focus from investors on suburban properties that meet resident needs in sought after locations.

 

Source: DMG Capital acquires multifamily portfolio in Orland Park

https://www.creconsult.net/market-trends/dmg-capital-acquires-multifamily-portfolio-in-orland-park/

The Problem Multifamily Can No Longer Ignore: Renters Insurance Compliance

The risks and costs of ignoring renters insurance compliance are far too great to not have the attention of rental housing providers.

Many renters live without renters insurance – all operators know it happens. Whether a renter cancels a policy, lets it lapse or forgets to renew, renters insurance compliance has remained a major challenge for operators. Renters insurance is not only difficult and time-consuming to monitor, but it also has massive effects on property insurance expenses for operators. Renters insurance compliance is a problem that multifamily can no longer ignore – the risks and costs are far too great to let it continue slipping through the cracks.

There are numerous obstacles for operators when it comes to tracking renters insurance, from confirming the authenticity of insurance documentation and tracking valid coverage to knowing exactly which renters don’t have policies and the moment a policy isn’t valid.

“The hardest part is that while it’s a requirement to have renters insurance to move-in, it’s really difficult to keep track of who remains in compliance and who doesn’t after they move in,” says Mike

Hogentogler, Chief Operating Officer of LCOR, a fully integrated real estate investment, development and management firm. “If an event occurs where an insurance claim needs to be made, we’re left wondering if the resident has coverage or if we will be responsible in any way. There is a lot of uncertainty when it comes to renters insurance, and it’s the type of uncertainty that carries a lot of risk and can get expensive.”

Compliance tracking

Operators who want to check renters insurance policies at a community have to perform random insurance audits. A renter may cancel their policy at any given time, but the only way to truly know is through the audit, and these aren’t feasible every day, let alone every week. Typically, the audits are up to the onsite team, but onsite teams already have their hands full and rarely have time or bandwidth to regularly track insurance. The audits are time-consuming and tedious, and many times these audits are far and few between.

“We’ve always trusted that residents are maintaining a policy, but the compliance tracking process needs to go beyond that,” Hogentogler says. “We need to trust, but verify. There has always been this gray area between the insured resident, insurance provider and the operator. In order to effectively track insurance compliance and really stay on top of it, it’s crucial to close that loop.”

Overarching risks

When residents don’t have renters insurance, it affects the entire community. Should something happen with a resident that is covered under the liability policy, but they don’t have renters insurance, it goes onto the community’s property insurance. As far as expenses go, operators allocate the largest amounts to taxes and insurance. If insurance rates go up, other residents eventually will have to absorb that.

“I want to do everything I can to keep my property insurance as clean as possible so I can get the most favorable rate,” Hogentogler says. “If a resident doesn’t have renters insurance for a problem, it needs to go onto my property insurance, which is now subject to deductibles and also hits my track record. Valid renters insurance policies keep my claims lower on the insurance side and give me a cleaner record so that when I go for renewal, I can push for a lower property rate to make my buildings run more efficiently.”

While there may be some bad actors who are just trying to move in and get by until they can cancel their policy, but most of the time, it’s an honest renewal oversight on behalf of the resident and the policy lapses. It could be something as innocent as a resident signing a 14-month lease, but they only had a 12-month policy and forgot to renew it.

Enter insurance techology (InsurTech) organizations

This is the gray area where InsurTech companies are stepping in to close the loop between residents, insurance providers and operators. Third-party InsurTech providers can do an initial insurance audit in a community so operators can identify which residents must return to compliance and validate policies for new residents. After that, InsurTech providers will take on the tracking process and continue monitoring renters insurance policies in real-time so operators will quickly know if any policies lapse or are canceled.

“Utilizing InsurTech or a third-party provider gives us tremendous comfort in knowing that now we can stay on top of policies in our communities and have the ability to immediately know when a resident falls out of compliance,” Hogentogler said. “Should a resident fall out of compliance, an onsite associate can contact them for documentation of a new policy or let them know we will put one in place for them.”

InsurTech services give operators confidence knowing that they’ve got the right risk mitigation strategies in place and that their most valuable assets are protected should anything happen. But it also provides a higher caliber experience for residents. InsurTech companies provide an easy way for renters to purchase insurance when they are signing a lease. Operators want to provide an exceptional level of customer service at their communities that enhances the resident experience and supplying a way to both purchase and monitor insurance is an extension of that.

“We are hyper-focused on the renter experience and want the insurance process to be as simple and seamless as possible” Hogentogler said. “InsurTech services have mastered how to use technology to allow residents to quickly and easily purchase a customized insurance policy, and also how to integrate that seamlessly into our risk mitigation.”

It’s important for operators to heed risks when it comes to renters insurance compliance, as compliance problems impact both operators and residents and increases costs. While technology has alleviated many pain points for operators, onsite teams and renters alike, it’s now trickling into the insurance arena and creating better processes for purchasing, validating and monitoring compliance and providing more robust risk mitigation tactics.

 

Source: The Problem Multifamily Can No Longer Ignore: Renters Insurance Compliance 

https://www.creconsult.net/market-trends/the-problem-multifamily-can-no-longer-ignore-renters-insurance-compliance/

Airbnb, Landlords Working Together To Fill Apartments With New Program

Airbnb rolled out a listing service for apartments that will include buildings where short-term sublets are allowed. Landlords who partner with the service will get a cut of the total booking revenue, usually 20%.

So far, the service offers apartments for short-term occupancy in more than 175 buildings managed by a dozen major apartment landlords in more than 25 markets, including Equity Residential and Greystar Real Estate Partners, The Wall Street Journal reports.

The service is an effort by Airbnb to increase the number of apartments it can offer for short-term rental, which was down 4.9% in October compared with 2019, according to peer-to-peer data specialist AirDNA. Over the same period, the number of total Airbnb listings was up 22.9%.

Airbnb bills the new service as a way for apartment renters to deal with inflation.

"As the cost of living continues to rise, renters can use the extra income earned by hosting part-time on Airbnb to contribute to their rent, save for a home, or pay for other living expenses,” Airbnb co-founder Nathan Blecharzyck, said in a statement.

The new service isn't the only step Airbnb has taken lately to shore up its business.

Earlier this month, the San Francisco-based company said it will increase the amount of liability coverage for hosts to as much as $3M, to better attract owners of houses in high-cost markets, ABC News reports. Airbnb also promised to make hidden cleaning fees — a major complaint among renters — more transparent.

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Source: Airbnb, Landlords Working Together To Fill Apartments With New Program

https://www.creconsult.net/market-trends/airbnb-landlords-working-together-to-fill-apartments-with-new-program/

Commercial Rate Snapshot 12-5-2022

Commercial Rate Snapshot 12-5-2022

These are the average available rates from eXp Commercial's Capital Partner CommLoan database of 700+ commercial lenders as of 12/05/22 and are provided for comparison purposes only. Actual rates are dependent on property and sponsor.

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