Identifying Real Estate Opportunities

The business of real estate is affected directly or indirectly with the change in the prices of the properties owing to the many ups and downs in the economy due to the uncertainty. There is a lot of fluctuations in the prices of the residential property, whereas the cost of the houses mentioned online is not regularly updated. Due to one reason or another, the number of the properties listed online is not updated by many people.

Some people under quoted the price of their properties online to sell it faster for different reasons says Hirsh Mohindra. Artificial intelligence is developed that earmark opportunities in the property business, for instance, various residential buildings available at the prices below the market rate online.

Best Places to Invest in Real Estate and its Economic Factors

 Population Growth

Every real estate investor aims to make money and gain profits. Traditional, this concept of real estate was limited to only investing in rental property. The investors used to make money through the monthly rent, which they accumulated from their tenants. But now things have changed no matter how profitable your rental property profits can be made only when you find tenants to rent the investment property. So the ideal places to invest in real estate are real estate markets, which will provide you with the best rental population says Hirsh Mohindra. With this, you can easily find how many people live in that area.

So areas with a burgeoning population are the most suitable areas to reinvest in real estate as more the people, more significant will be the pool of tenants. Moreover, this growing population is the formation of new investment properties as it indicates that more homeowners are moving to that market.

 Job Trends

It has been observed that the best places to spend in real estate are job and employment trends. All the people investing should invest in areas with growing job possibilities because this factor is tied to the population. The markets having more job opportunities pull people.

The job trends describe that a rental property investor should also take payments into account.

Also, the trend demonstrates that the growing economy, but also a property investor will be able to find ideal tenants. Moreover, the people who are more financially stable are prepared to pay their recurrent rent in full and will invest more says Hirsh Mohindra. Another trend which is a sign of a good job and employment trends are construction sites going up for a business that is the recent trend of commercial real estate. Moreover, all of this information about job trends in real estate markets could be searched and found online.

Real Estate Situation During Corona Pandemic

The real estate business is on the downward trend due to Covid-19, as people are not coming forward personally to see the built houses owing to the social distancing orders of the administration says Hirsh Mohindra. As a result of this, people will tend to go outside the city where the area of the houses is more significant comparatively, and proper social distancing is maintained there.

In April this year, home sales went down by thirteen to twenty percent, which is a considerable number, but the property prices increased by four percentage, which was better than expected during April. The only challenge for the property dealers is that they could not show the houses personally due to the social distancing norm, which was revealed by Corcoran to Fox.

The property prices are expected to remain stable for the potential buyers as big institutional investors are missing as compared to the 2008 financial crisis when they ruled the market. However, real estate business in urban areas will remain inactive for the time being.

Corona Pandemic

Trends of the Market:

The real estate business boomed in the last ten years. Little ups and downs were there, no doubt, but the market fundamentals remained strong. The environment has become conducive for both buyers and sellers with a lesser rate of unemployment, consistent economy, and low rate of interest says Hirsh Mohindra. Nevertheless, peaking prices of the property and less availability have kept the potential buyers out of the market. Non availability of the houses is the main concern and in order to overcome this, various state governments have brought rental reforms to protect the exchange of real estate from falling.

Real estate builders are hopeful of the present state of growth. According to one survey by The National Association of Home Builders, it has been found that the leading cause of worry for the builders is shortage of labor and the increasing prices of different construction materials despite the constant demand for new homes. Lennar, one of the influential builders of New York and others have changed their approach towards homemaking by doing more construction on a minimum land, thus reducing the expenditure.

The upturn and the downturn in the real estate is a regular feature, and another recession is in the pipeline says Hirsh Mohindra. As per the survey done in September 2019 by Yougov, forty six percent of the people in America think that the coming two years would be difficult for the real estate business.

The trends of the real estate business would undergo a change in the future by forecasting. It is also revealed in the survey that it is profitable investing in real estate than in equities.

Contract with Right Real Estate Agent

It requires lots of money to purchase a house for yourself. Thus one has to sell a pre-owned property for it. It is always advised to buy a residential place through a property dealer who is more easier and efficient method than dealing on your own. You will be rightly informed of the actual cost of the property, market conditions, different offers received and other important aspects of the said property with the help of a real estate agent says Hirsh Mohindra. The dealer informs you of the various people who are Keen to buy a property and the prices quoted by them. This would save a lot of your time as you get the right price offer from the person who is already in this field.

The seller invariably would like to have a second meeting with the buyer to crack the deal by reexamining the various aspects. Therefore, it is mandatory for the seller to consider all options available to him and try to finalize the sale without further hitches. The property dealer is instrumental in providing every sort of relief like helping the buyer to avoid paying any extra charges like mortgage amount if any to close the deal says Hirsh Mohindra.

The property dealer knows all the tips and tricks while becoming an agent for cracking the deal. The buyer should let the dealer know what type of house he is interested in and various other features in the house before purchasing it. This will help the real estate agent in proper documentation of the deal in order to get rid of any misunderstanding in future.

Real One’s Will Reveal Potential Buyers

The property dealer would inform all the potential buyers about the property which has come for sale. Firstly, an initial offer is revealed to them is followed by the final proposal which is the closing price for the deal and then the agent adds other overhead expenses to the cost and quotes the final price. The agent will also consider renovation cost if any says Hirsh Mohindra. The location of the house and the prevailing rate of the properties in the area is also taken into account by the property dealer and duly informed.

The property dealer will negotiate with the seller about the price of the property. One must have confidence and respect the decisions of the agent you have hired to crack the deal for you. The estate agent should be told each and everything about the property right from its location, total area of the house, the price demanded it and whatever else you are looking for in the sale. So get contacted with the right set of agents to get the right quotes for your new property.

Prepare Closing 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.

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.

Indian Homebuyers Can Seek Repayment

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 the 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.

Impact Real Estate Market

The real estate market is a significant portion of our economy. It demonstrates a major portion of many people’s wealth. This is consistent pretty much throughout the global economy. According to the research of Hirsh Mohindra, many families around the world own their own primary residence. Asides from primary homeowners, the real estate market also attract investors. Investors are drawn to investment opportunity and security provided real property. The growth rate, along with the size and scale of the real estate market has presented itself as a very lucrative area for investors.

Some of the major factors that affect the real estate market include:

Interest Rates

Interest rates are one of the major factors that have an impact on the real estate market prices. If you’re planning to buy a home with a mortgage it is advantageous to research interest rates using a mortgage calculator says Hirsh Mohindra. The fluctuations in interest rates influence a buyer’s ability to purchase a residential property. The lower interest rates go, the lower the cost to obtain a mortgage to purchase. Accordingly, interest rates have a direct impact upon demand for real estate, which influences price in the market as well.

Conversely, as interest rates rise, the cost to obtain a mortgage increases, which in turn lowers the demand and prices of real estate. However, when we assess interest rates on an equity investment such as a real estate investment trust (REIT), rather than on residential real estate, the connection can be seen of as similar to a bond’s relationship with interest rates. When interest rates decrease, the price of a bond goes up because its coupon rate becomes more desirable, and when interest rates hike up, the value of bonds declines.

The Economy factor

Another crucial factor that impacts the value of real estate is the overall health of the economy. This is generally counted by economic indicators like the GDP, employment rate, manufacturing activity, the prices of goods and services says Hirsh Mohindra. To be precise, when the economy is sluggish, the real estate sector also becomes sluggish.

The economy you are living in can have varying effects on varied types of real estate. For instance, Hotels are a form of real estate property that is very sensitive to economic activity due to the type of lease structure inherent in the business. Renting a hotel room can be thought of as a form of lease that can be easily avoided by hotel customers should the economy be doing poorly. This is a form of the short term lease. On the other hand, office tenants generally have longer-term leases that can’t be changed in the middle of an economic downturn.

Government Policies/Subsidies

Government legislation and policy can also influence the real estate market. Tax credits, deductions, and subsidies are some of the measures the government can temporarily use to drive demand for real estate. One should monitor upcoming policies that could have a direct causal impact on the real estate market.

Residential Real Estate

Residential Real Estate

Real estate buyers are not just interested in the size of their property, but he also looks for open areas and amenities says Hirsh Mohindra.

Typically, builders relied on the structural integrity of properties to attract buyers — size, square footage, location, etc. However recent trends are showing that buyers are interested in more amenities in buildings and communities says Hirsh Mohindra. Buyers are also attracted to properties having open space reserves — even open communal spaces. Many buildings are now coming equipped with yoga studios, massage rooms, and even recording studios. These features are significant value adds from the typical gym found in buildings.

Changing Trend of the real estate market

Is this a changing trend? Not exactly, because certain buyers always want a home, not simply a unit. A home that has unique installations and open spaces provide for a fresh feel. The trend, however, has picked up in its momentum as more and more buyers are having these same parameters as necessary prerequisites for their purchase.

What are the compelling justifications?

Urbanization has guaranteed people from small towns and villages discover a place in big cities. A good amount of people (middle and upper class) from minor towns are used to living in homes be it big or small that have a lawn, a veranda, a compound filled with greenery, wide-open spaces. They need a related touch to their homes when they depart to cities in search of their livelihoods.

Hectic work schedules have given rise to escalating stress levels and add to that, blocked traffic circumstances and boosting pollution levels, all these earn for a very concern filled and chaotic life. Homeowners look forth to stay in an environment that calms their minds and hearts and eases these pressure levels. They want to invest in properties with open spaces and compelled amenities to provide the perfect solution.

City life can be a completely lonely life, with many friends and relatives living far off and wandering is a big problem. Amenities such as multipurpose halls and grasslands prepare for terrific areas to meet new people and socialise within the neighborhood.

Amenities and open spaces also unravel the difficulty of committing several demographics. While kids can utilize the sports areas, elders can grab a walk in the park to get some fresh air. Children and experts can have swimming pools and gymnasiums for their fitness needs and leisure time. There should also be something for everyone in a real estate that has amenities and open spaces.

Hirsh Mohindra: As per the research 10% of the total property area must be left aside for formulating open spaces or open space reserves. This authorization obliges developers to keep aside as much space. Although, this norm is not adhered to in specific cases due to the lack of land availability and other interests.

Good Carrier Options for Many People

Building a good carrier has become a need of the hour. There are many opportunities in the market for the people who want to enter the commerce line. Real estate analyst is one such field they can divert themselves into. This profile is rising and has many opportunities all around the world. Also the demand for such a profession is also increasing as the awareness about this job is very less. People are very less aware about this profession says Hirsh Mohindra.

They are not aware about its advantageous. The people who are aware are repaying the benefits. It is what gives rise to the growing trend of the market. With the growing trend a person is needed who can explore the trend and suggest people about it.

A career in real estate is very challenging and profitable. Get a license from the appropriate authority, join the Realtors Association, choose a reliable brokerage and explore your contacts to start a career in Real Estate. No primary education is required for real estate business. There are different careers in real estate business like real estate agents, Real Estate managing broker, Property Appraiser, Leasing consultants. To become a certified appraisal you are required to get 150 hours of education and can earn one lack dollars annually.

Another field which is worth choosing a carrier option is the Appraiser. He is a person who is authorized to make reports on the valuation of different properties and also give a legal opinion on them. The job growth in the field of real estate is faster than other occupations. In some countries, high school diploma or a bachelor’s degree in real estate is mandatory for obtaining a license for doing business.

Real Estate industry is expected to grow worth 180 billion US dollars in the next few years says Hirsh Mohindra. As the industry has increasing trend so is the job prospects and the carrier option of the industry. So with the increasing trend many people are looking forward toward adopting a carrier in the real estate sector. Get a thought over this thing if you are in this field.

Is making money in Real Estate possible?

Real Estate

Making money in this competitive world is not an uncomplicated task and with so many variations in the market, it is clearly a big risk, also when it comes to making money in real estate spending, there are very fewer ways to do it as interpreted by the researcher. Also once you assume the whole idea after the ideas of the sector, the implementation process would not be easier, try getting the notes of everything you understand. In this method the implementation process becomes quite easier, as there is a lot to discover, it will demonstrate simple for you to finish completely in the market full of questions and maximizing earning potential would become more prosperous says Hirsh Mohindra.

Below mentioned are few Strategies to Make Money from Real Estate Investments:

  • Models of Rental Revenue by leasing out the resources to residents.
  • Augmentation in property Value
  • Models of Rental Revenue by leasing out the resources to residents

If you require to earn humongous from the Real estate sector can be done by renting the property you own, this approach you can earn rental income on which according to the income tax rules you have to partly pay taxes. The rental income is taxable, but that doesn’t mean everything you accumulate from your tenants is taxable.

You’re allowed to overcome your rental income by deducting expenses that you acquire to get your property available to rent, and then to keep it as a rental says Hirsh Mohindra. Also, Management allows landlords to have a higher hand as far as the number of rent is concerned, so there would be no doubt you have to face in the collection of rent and also the law favors the landlords in this case.

Augmentation in property Value

This development in property value is also a fluctuating concept, one requires to follow this basic trend of the market that property prices do not always increase, this the case is apparent from the real estate market prices of the late eighties, but the trends are quite changed now the market is now getting pace and people are getting returns from increasing property value says Hirsh Mohindra. Also, this happens when the rate of inflation is predicted to surpass the current rate of long-term debt, you might find people qualified to chance by obtaining businesses, acquiring money to fund the purchase and then waiting for inflation to rise. This whole concept depicts a transfer from savers to accounts.

The possibility to make money can be infinite, it on you how you seize the opportunity if you answer at the right time you will definitely get compensated with the returns. So adopt any of these to get returns from the business activity which depends upon Real Estate.

Long Term Short Real Estate Business

Real Estate business is generally a long term investment. The growth of the economy and consumers’ confidence increases with the rising prices of houses and vice versa. The business of real estate is the biggest industry in America. In 2018 its share was six percent of the US Gross domestic product. Real Estate business provides millions of people with houses and is the largest source of wealth creation. Property business helps in providing employment for millions of people. The value of your property increases over time and thus it requires a lot of patience says Hirsh Mohindra.

Before buying a piece of land quality of the neighborhood must be taken into account besides other factors. The value of different properties depends upon the economic conditions of the area you are investing and availability of mortgage funds. Prospects of the area is also of prime consideration. Lot of research is mandatory before buying a property. Always select a low cost house. Average return on real estate business differ with the location.

So there are few factors that you should consider before starting the business in the real estate market that are that you should concentrate on all the relevant business organizing and budgeting assignments. Many devices and guidance will assist you to concentrate on essential marketing methods and get a quick derivation on making profits in the long run and the short run. But never take step on the basis of influence says Hirsh Mohindra.

So there are few factors that you should consider before starting the business in the real estate market that are that you should concentrate on all the relevant business organizing and budgeting assignments. Many devices and guidance will assist you to concentrate on essential marketing methods and get a quick derivation on making profits in the long run and the short run. But never take step on the basis of influence says Hirsh Mohindra.

An informed decision is one that is prudent and will fetch you profits. Overindulging yourself with lot of advises will take you nowhere. There is no person who can totally predict the market. There are chances of speculation but you cannot totally judge the market and think about profits. Go with advise of expert as they can at least cover your half threat of fluctuation with their knowledge. But they cannot be hundred percent true.

Established Companies Want 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.

At best, skeptics see instantaneous purchase also known as buying, 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.

Millennials Are Affecting The Price of Your Home. Here’s how?

Younger Americans are purchasing houses far less often than older generations and that puts a great sector of the U.S. wealth at risk.

It used to be that everybody sought to purchase a home, seeking delight and safety, as well as the probable for future prosperity. However, younger Americans are purchasing homes far fewer than past generations, and that puts a huge part of the U.S. economy at risk says Hirsh Mohindra.

Millennial home ownership levels are dramatically lower than those of previous generations at a similar age. In 1985, 50% of people (age limit between 25 to 34) owned a residence in the US and by 2015, this had dropped about 25%. Since the housing market presently accounts for 15 to 18% of the country’s gross familial product, any alteration in established activities could have considerable consequences on the larger macroeconomic perspective.

Many researchers are becoming increasingly concerned that the future of the US economy will be impacted by how millennials actions are changing the real estate market. According to some researchers, both the increase and decrease in home costs can be directly correlated to where millennials decide to live.

If a long-term behavioral modification is going on and this age demographic continues to not purchase houses, it will impact the GDP. Moreover, the young generations lag behind their prior generations in terms of milestones like home ownership and weddings, which are currently key metrics when evaluating the health of the overall economy. Previous generations built considerable equity in their homes, this asset served a powerful wealth generation tool and provided a modicum of stability, says Hirsh Mohindra.

Despite the decrease in homeownership amongst younger generations, alternative real estate markets have flourished. Ultimately, millennials still require housing. And while a good portion of millennials tends to live in their parents’ homes longer, a good deal of millennials are long term renters — which is adding a positive impact to the overall residential rental market, says Hirsh Mohindra.

In addition, millennials have embraced long term housing accommodations provided through companies such as Air BnB and other similarly situated companies. This shift in housing personality has cultivated the growth of the long-term temporary housing markets. Air BnB has grown significantly and has an impressive market capitalization — which has been reported to exceed $31 billion in 2018.

So while changing housing desires and needs may impact the housing market, those same changes are creating new market opportunities that are positively impacting the overall economy.

Blackstone seeks raise $5B Real Estate Debt Fund

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.

Real Estate Index Gains Most Auctions

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.  

Chicago Real Estate Seeing 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.

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.

1. 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.

2. 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.

3. 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 unknown expenses and operational costs.

4. 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 skill set.

5. 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.

6. 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.

US Real Estate is Seeing Growth in the 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.

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.

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.

Safeguard Real Estate Investment

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.