Janover (NASDAQ: JNVR)’s Post

My latest article in Property118.com In this article, I delve into the reasons why it makes sound business sense for landlords to implement regular rent increases, and how doing so can ultimately benefit tenants as well. https://lnkd.in/egf_DNSB

What is a leasehold property and should I avoid buying one? Experts explain all you need to know https://lnkd.in/eYGRJ6F8 #Property #HousingMarket #Leasehold

While headlines often focus on the challenges of being a landlord, there are significant advantages to owning rental properties. These benefits become even more compelling in a period of easing interest rates. DOWNLOAD the full article here https://loom.ly/ZEqNaZM

Average freehold house prices now command 42% more than leasehold homes: https://lnkd.in/eaVwCUJW 📍 Find Us @WestcleanUK: https://lnkd.in/eJd3WtH4 #cleaningservices #facilitiesmanagement #propertymanager #commercialcleaning #property #housingmarket #professionalcleaning

While headlines often focus on the challenges of being a landlord, there are significant advantages to owning rental properties. These benefits become even more compelling in a period of easing interest rates. DOWNLOAD the full article here https://loom.ly/ZEqNaZM

📊 The latest update to the Housing Monitor Dashboard is here! Created to help REALTORS® monitor BC’s housing market, this dashboard provides insights into resale homes, construction, rentals, borrowing costs, and more. All for public education and use. Check it out here: https://lnkd.in/grtxyuDk

💸 How do you budget when building a house? According to data from the National Association of Home Builders, the average cost to build a single-family home in the United States was just under $300,000. Please note that this amount does not include expenses such as purchasing land, finishing a lot, financing it, and so forth. When you take these additional costs into consideration, the average price of a new construction project is roughly $485,000. 😍 When it comes to building a home, it is important to be cognizant of both “hard costs” and “soft costs.” Navigating both costs effectively is critical for how to budget for building a house. For context, hard costs are the expenses necessary to actually build the structure of your home. Examples of hard costs include materials, contractors, site preparation, foundation, and so forth. In contrast, soft costs are the “other” expenses that are not directly related to the actual brick and mortar of your home. Nevertheless, they are equally important and should not be neglected. Examples of soft costs include building permits, house plans, taxes, HOA fees, and so forth. 🏠 If you’re looking to build your dream home, Monster House Plans is here to help. Our services are unlike any other option because we offer unique, brand-specific ideas that you can’t find elsewhere. Visit our website today! ➡️ https://ow.ly/tjGo50RmtXW #HomeBuilding #BudgetingTips #ConstructionCosts

The surge in U.S. commercial foreclosures, underscores the ongoing challenges facing the real estate sector. With commercial properties, particularly office spaces, grappling with evolving work dynamics and economic uncertainties.

🔍 Understanding Cap Rates in Commercial Real Estate Curious about cap rates? Let's dive in! What are cap rates? 🤔 Cap rates are like the heartbeat of commercial real estate investments. They represent the return on investment without leverage. In simpler terms, if you buy a property at a "5-cap" with no debt, you will make a 5% return on your investment annually. 💰 A cap rate is calculated as the Net Operating Income (NOI) divided by the value of the property. Net operating income is the left over annual profit after netting expenses from gross revenue and before considering debt expenses or capital improvements. The property value is then determined by market conditions and comparable properties in the area. Why do cap rates matter? 🏆 Cap rates dictate property prices. Paying too much can turn a good investment sour. Understanding and negotiation are key! 🤝 Let's assume that you are looking at a property that has an NOI of $300,000. If you want to pay cash and receive a 5% annual return, that property will cost $6,000,000. However, the owner is trying to sell it at a 4-cap. The seller wants $7,500,000. In this example, a 1% change in cap rate equates to a $1,500,000 change in price! When negotiating this number, it is critical to understand that each side of the transaction has different motivations. As a seller, you want the lowest possible cap rate yielding the highest price and as a buyer, you want the highest possible cap rate yielding the lowest price. 🧮 Can cap rates be manipulated? 🤨 Absolutely! Sellers might tweak numbers to make their property seem more profitable. But at Hackman Holdings, we stick to conservative underwriting to ensure solid investments. The primary tool available to sellers for altering the listing price through the cap rate is changing the NOI. They can put short term tenants in vacant units or temporarily cut some operating expenses to increase revenue and cost costs. Sellers can also hide operating expenses as below the line (not included in NOI calculation) capital improvement expenses to increase the property NOI. Additionally, many sellers succumb to the "sunk cost fallacy" believing that they must recoup money lost from their investment. Ever heard someone say "Well, I have put this much into it so I have to sell it for at least this much"? Just because you spent x on an investment, does not mean it is worth at least x. DO NOT pay for value that has disappeared or has not been created! Cap rates are important tools in real estate! So we must understand them and utilize them as powerful tools for investing! 📊

One of the most common questions HOA and condo boards receive from their owners is, “What can we do about the rentals?” While rentals can be limited or prohibited by an amendment to the declaration or a rule adopted by the Board, it can be a bit more complex. Check out this month's Board Minute to learn more about updating your community's policies on leasing. https://lnkd.in/g5pUxgdV