Almost one third of home sale transactions in the U.S. last year have been all-cash, according to an article in the Wall Street Journal.  Which might explain why mortgage applications have been down, as all-cash transactions completely bypass the mortgage process.

The Journal reports that more and more homebuyers are selling other investments to pay cash for real estate.

"Lending is very tight, so we are seeing people who can't qualify for loans but are invested in the market, cash out (and buy a home)." says Mitra Kalita of WSJ. "You are starting to see people who may have been on the sidelines, now taking the plunge."

For the real estate market to rebound, however, we need to see lending requirements loosen so that first time home buyers can bring vitality to the economy.  Most of the cash buyers are baby boomers looking for a retirement home and taking advantage of markets that have been hardest hit.

Read the full article at WSJ.

photo credit: wallyg

Posted in Real Estate Investing, Real Estate Market Conditions

Generation Y, also referred to as the as the Millennials, use communications, media and digital technologies in their everyday life.  They connect with their world online, through social media and they are very aware of what their "friends" are doing.  Marketing to this group obviously means connecting with them through social media outlets such as Facebook, Twitter, etc.

"They are the first generation in human history who regard behaviors like tweeting and texting, along with websites like Facebook, YouTube, Google and Wikipedia, not as astonishing innovations of the digital era, but as everyday parts of their social lives and their search for understanding." said the Pew Research Center.

In an article on The Next Web.com, Ekatarina Walters gives us the statistics of Gen-Y's brand awareness and how they connect to their world through social media:

Facebook:

• 40% visit Facebook more than 10 times a day and 76% spend over an hour a day on it.
• 43% have liked more than 20 brands on Facebook. 71% reported liking a brand just for the free offer.

Twitter:  58% use Twitter "all the time".

Foursquare:  66% would look up a business after learning that their friend checked in there.

Buyers seem to be getting younger and younger!  In 2011, the average age of a first time home buyer was 30, according to the National Association of REALTORS®. The oldest members of the Millennial generation are reaching 32 now.  Make sure that your marketing includes social media to keep in touch with younger potential clients who will soon be looking to invest in the real estate market.

Read the full article at TheNextWeb.com

View the Highlights of the NAR Report.

photo credit: AlvaroArenas

Posted in Internet Marketing, Gen X-Y, Technology And YOU

It's all about lead generation in the real estate industry. "Getting someone to agree to a coffee meeting is only the first step in obtaining leads." writes John Heckers in a great article for Colorado Biz Magazine.

Cultivating networking partners is an important aspect of business growth.  A networking partner is an acquaintance in the business world through which you can generate leads that you might not otherwise get. This partnership is a two-way street, so make sure you get to know the person before doing business with them.  A coffee meeting is a great way to build trust and begin a long-term networking relationship.

Heckers offers "Nine ways to make the most of your coffee meeting, otherwise all you get is Starbucks and a lighter wallet."

1.)    It's not all about you.  Ask what you can do to help them in their goals.  This is a quicker way to get the information (and potential leads) you want.

2.)    "Don't go for the jugular" counsels Heckers.  You have to establish trust and a relationship before someone opens their rolodex to you.

3.)    Give your 30-second elevator speech, not "War and Peace". Make it conversational, hit only the details you need and keep it under two minutes.

4.)    Ask "Who do you know to whom I should be speaking?"  DON'T ask if they know someone because unless they live in a cave, of course they know people.

5.)    Counteract a negative response of "Gee, I don't know anyone" with suggestions of types of acquaintances they might know including neighbors, coworkers, people they've met while networking, vendors, etc.

6.)    Closing:  At the end, thank them for their time and exchange cards.  "Ask your networking partner to keep you informed of their progress, and ask if they'd like to be kept informed of yours.  If the networking partner has been helpful, suggest that you two meet again in a couple of weeks." suggests Heckers.

7.)    Leave Communication Open:  At the close, tell them you'd be happy to give them a call if you come up with more information and then ask them to do the same.  And then make sure you follow through!

8.)    "Don't be too nice though," says Heckers. If you refer contacts to the networking partner, follow up on those people you sent to see how things were handled.

9.)    Don't Waste Valuable Time:  "If it has been two meetings and you still are not getting any reciprocity from a new networking partner, broom 'em. Don't waste your time continuing to meet with someone who is stingy or unhelpful. It may sound harsh, but your time is valuable." writes Heckers.

Your coffee meeting can be a valuable tool or a complete waste of time, says Heckers.  It's important to know the difference and make your time count.

Read more at ColoBiz.com

photo credit: Jonathan Rubio

Posted in Real Estate Industry Trends, Lead Generation

Real Estate Investment Trust (REIT) companies will be investing in more 100k+ single family homes in 2012.

"For the first time you will see billions of dollars coming in from publicly traded and non-publicly traded REIT's into single family homes." predicts Greg Rand, CEO of OwnAmerica.com. "It's the most significant trend in residential real estate for 2012."

A Real Estate Investment Trust company uses pooled money from investors to invest in real estate.  Usually REIT's invest in commercial real estate and multifamily projects but, in today's market, the demand for rentals is going up along with rents and apartment complex values. Single family homes are a better value plus they are more "liquid" in terms of being able to sell them easier than a huge apartment complex.

"REIT's have been in existence for decades, and there are exactly none that are invested in the single family home sector." explains Rand.   But the industry is all abuzz with this new trend.  "The main things holding REITs back are (a) some laws and regulations that need to be ironed out, and (b) a field operation that can select, acquire, rehab, lease and manage the portfolio."

Rand predicts that real estate companies and individual agents who ready themselves for this next trend will see their business grow dramatically in the next few years as the competition among residential REITs heats up.  

"This is bigger than new construction. Bigger than corporate relo. Bigger even than distressed property. This is billions in transaction volume. Do you think it is worth preparing for? If you are reading this in January 2012 and take action, you are ahead of the curve." says Rand.

Read Rand's blog at OwnAmerica.com.

Watch Rand on Fox Business News

photo credit: Jonathan D. Blundell

Posted in Real Estate Investing, Real Estate Industry Trends

Looking for a vacation home while the prices are low?  Lifestyle Asset Group, a Ft. Collins Colorado based company is selling luxury vacation home ownership at a small investment.

The business model offers investors a one-eighth ownership in twelve $1 million dollar homes in locations such as Napa Valley, NYC, Chicago, Florida, Mexico, Turks and Caicos and the Dominican Republic. 

Investors must make a $10k fully refundable deposit to guarantee membership and then members pay a capital contribution of $300k.  The first property group will close on February 28^th, 2012. Annually, members can expect to pay $24,000 for expenses.

Rich Keith, CEO of Lifestyle Asset Group was the founder of another once-thriving luxury vacation club that ultimately ended in bankruptcy in 2010 after struggling with huge debt.

"What we learned," said Keith in an interview with Fox Business News," is that you cannot have bank debt in the luxury market." The members will be part of an LLC and will own the properties free and clear.

In seven years, the inventory of homes will be sold and assets will be divided, as stipulated in the LLC contract.  Seven years was chosen because it is the average length of time most people maintain a club membership and is also the amount of time it takes to fully emerge from an economic downturn.

Timing for a new vacation ownership model and for picking up luxury properties in a still-cool real estate market couldn't be better, says Keith in an article in the Northern Colorado Business Report.  He said the club intends to eventually sign up 200 members to own 24 luxury properties.

Watch the full interview at Fox Business News

photo credit: Carlanne McCrystal

Posted in Headlines, Real Estate Investing