Videos Archives - RealLaunch

4 Reasons Why CRE Brokers Must Have a YouTube Presence

May 30, 2019September 12, 2017 by RealLaunch

Your presence online is more important than ever, more and more CRE brokers are seeking out opportunities to establish their online presence. With that in mind many seem to stray far away from the world of video, particularly YouTube and it’s influence on online users. Before you decide to opt out on creating YouTube videos for your commercial real estate listings, check out our 4 reasons why CRE brokers must have a YouTube presence.

1. People engage with short 20-30 second videos way mor4 Reae than with written content.

Let’s face it, we don’t always have time to read up on the latest news and market information, that’s why YouTube videos are amazing for those of us running short on time. Believe it or not, the longer your videos are, the lower your retention rate is. According to Single Grain, on average videos that are 1 minute or less in length garner a retention rate of 80%, 2-3 minute videos retain a bit less at 60%, and videos that are 5-10 minutes in length, retain 50% of viewers.

Just image what the retention rate of your lengthy and wordy, but informative blog posts may be. Creating a YouTube video that is short, informative, and engaging allows you to retain more of your viewers.

2. Investors, buyers, and sellers all want to learn and be educated.

There are 3 types of learners; visual, auditory, and kinesthetic, and sometimes combination of all 3. Creating a presence on YouTube and creating content that is both visual and auditory allows a large amount of your audience the ability to digest your content in a way that whitepapers or wordy reports cannot. This allows you to give your audience a visual representation of the topic being discussed rather than just posting a long and wordy blog or article.

There are a number of different formats of YouTube videos you can create, there are:

Interviews: Use this format to interview others within your field, bring in experts from different realms. Tackle a subject each video, ask and answer one question, something that is impactful but not lengthy in time (remember the longer the video, the lower the retention rate).
Tips & Tricks: Keep your viewers up-to-date with the latest tips and tools for commercial real estate. Display these tips and tools and demonstrate your use of them, be visual and verbal in your explanation.
Market Updates: Keep your viewers in the know, update them with the latest market news, not only does this keep your viewers informed, but it’ll keep you informed as well.
Client Reviews/Engagement: Get your clients involved, create short video reviews from your clients and their experience working with you.

3. YouTube videos help build your credibility.

Creating an impactful form of informative and engaging content establishes your credibility and knowledge as a commercial real estate broker. We all need something that separates us from the rest of the CRE Brokers. Prospective clients are much more likely to seek out your services and expertise if you appear to be an established, experienced, and knowledgeable in your industry. Simple videos that vary in topic and format will build your credibility and eventually establish it.

Demonstrate your knowledge, illustrate, create diagrams and models in your YouTube videos. Showing your viewers that you know what you’re talking about.

4. Youtube is the 2nd most used search engine in the world (2nd only to Google.com).

According to Placester, “more than 50% of prospective home buyers use Youtube as their primary video research.” And the same applies to commercial investors, buyers, and sellers. This means that your audience is actively using YouTube and they want more than just a slideshow of images, they want a format of content that is much more rich, interactive, and engaging. This can come in the form of property video tours, both inside and outside of the property and even videos that consist of tips and tricks for others within the industry.

Seven Traits to Look for in a Real Estate Broker

May 30, 2019August 25, 2017 by RealLaunch

I’ve been involved in commercial real estate for more than 25 years. Since then, I’ve come to understand what works and what doesn’t when it comes to the relationship between a client and their broker. I put together a list of 7 key traits for brokers to strive for, developed from my many years of experience in the field.

1. Brush up on your communication skills.

Communication is key to any successful relationship. It may seem simple, but it’s crucial to maintaining trust with a client.

If you’re a commercial broker, you need to be in contact with your clients on a regular basis.

Update your clients on new investment opportunities; be clear about what you are going to do once you take on the property as a listing; and inform your clients about the marketplace.

If you’re leasing a property for your client, generate a weekly report detailing activity, even if there is none. Don’t be afraid to explain why an office building, for example, leased in a certain market and not the one you’re representing. These conversations build trust and hold you, the broker, accountable.

The door should always be open.

2. Maintain professionalism at all times.

Sure, this may seem pretty straightforward, but putting it in practice is a different story.

As a broker, you should constantly be willing to learn. Be ready to go the extra mile.

I, for example, am certified with the Certified Commercial Investment Member Institute (CCIM) — only one percent of brokers hold that designation. It makes me stand out and gives me the skills to provide a unique and improved service to my clients.

Commit yourself to excellence and hold yourself to a higher standard. Do something that adds value to the client experience.

3. Be knowledgeable and prepared to answer questions.

Are you prepared to answer client questions? Do you understand the intricacies of the market? Are you capable of advising your client to achieve the best outcome?

These are all questions you should be replying to with a resounding “yes.”
Being knowledgeable is essential. My CCIM training, for example, taught me how to define a cap rate, calculate a ten-year cash flow analysis and internal rate of return. If you’re able to answer those questions, you have an edge.

More specifically to you, be prepared to tell clients how many properties you sold in the last year, your total dollar volume and other details related to your professional experience and accomplishments. If you specialize in a specific asset class, tell investors.

Understanding the industry and having a specialty is key.

4. Always be honest.

Being transparent with clients has been at the forefront of my business practice for years. Breaching ethical standards to turn a profit or make a deal should simply be off the table at all times.

Even if you make a mistake, be honest with your clients. It’s your responsibility to build a trusting relationship so apologize for your mistakes and make it right. Don’t make up a story.

Client’s appreciate a broker that strives to maintain a high level of integrity at all times.

5. Don’t forget to be tenacious.

Do you prefer to work from 8 a.m to 5 p.m. or do you like to get out and knock on doors? Going the extra mile makes all the difference.

Half of my sales come from properties that aren’t even listed — I’ve sold everything from a movie theatre all the way to a hotel on properties that weren’t listed.

As a broker, it’s your job to stir up deals. Inform the public about the market and make moves.

6. Entrepreneurship opens doors.

A mere 8 percent of brokers own a property outside of their own home. That means more than 90 percent of brokers don’t own an investment property. Run the numbers.

If you’re going to do business and encourage investment, you should know how to answer client questions from experience. That’s why I’ve invested in commercial real estate for years.

Not only has it generated tremendous opportunity for me, but it’s provided me with a unique insight that I can bring to clients. I know what it’s like to be a landlord. I’ve been in those situations and I can tell clients how I handled it on my own.

Being an entrepreneur demonstrates self-motivation and goes a long way in business.

7. Persevere when times are tough.

Transactions that take months to finalize are one of the most challenging aspects about being a broker, but you’ve got to stick with it.

Face it, commercial transactions take time. You have to communicate with your client throughout the process, even if it takes months. Remain up to date on the information and send your client progress reports. You’ll need to continue providing assurance to your client and others involved throughout the process, despite how long it takes.

To counter that, know when it’s time to cut your losses. It’s acceptable to identify that a transaction is not working. Inform your client and choose what’s best.

Learn to persevere and you’ll be successful in the long run.

What is Internal Rate of Return (IRR)?

May 30, 2019August 16, 2017 by RealLaunch

In commercial real estate, it’s smart to think ahead and keep a close eye on the numbers.

As a commercial broker with more than two decades in the ring, I’ve continued to rely on a variety of metrics, including Internal Rate of Return, or IRR, to ensure my investments are sound.

IRR stands strong in its ability to identify the value of an investment over time. In essence, it quantifies the yield you’ll achieve after you invest in a property after an approximate ten year period — a metric used based on the average holding period of about seven to ten years.

The calculation accounts for the income generated by the property with expenses, or the Net Operating Income (NOI), and assumes you’ll sell the property based on future income on the tenth year.

To calculate the IRR, you’ll need to identify expected cash flows for each year, accounting for outflows in the first year. To calculate cash flows, or the Effective Gross Income (EGI), you must subtract potential gross income from vacancy rates and identify your NOI.

Once you’ve identified assumed income achieved for each year, you should be able to see a steady growth. Ultimately, you should achieve an approximate 1 to 5 percent assumed growth rate per year.

Now that you have calculated the expected NOI through year 10, you are in the green to select a capitalization rate, or a cap rate, which is the ratio between NOI and the property’s asset value. You’ll want to make the selection for year 11, when you plan to sell the property.

Often, I’ll set the cap rate to about .5 percent higher than the rate in which I purchased the property — so if I purchased the property at a cap rate of 6, I’ll use a 6.5 rate in year 10 and cap the year 11 income to produce reversionary value.

Software programs like Excel do wonders in making IRR calculations a cinch. Often, IRR’s sit around 15 percent, however they can get higher if you’re refinancing a property or are involved in a development.

So, if you’re an investor looking to gauge the profitability of a future commercial real estate deal, I’d recommend taking a look at IRR.

Real Estate Crowdfunding: A Trend That’s Here to Stay

August 25, 2017November 28, 2016 by RealLaunch

The playing field is becoming more level for small investors thanks to a slew of real estate crowdfunding websites sprouting up across the web.

The crowd-sourced investment websites have become an expansive trend in the industry. In the last year, an estimated half a billion dollars pooled into sites like realtyshares.com, realtymogul.com and realcrowd.com.

To keep it sweet, it’s the trend that’s here to stay for commercial real estate. And for the next week, MyNOI will be covering the details you need to know when getting involved.

Just over a year ago the U.S. Securities and Exchange Commission (SEC) opened doors to permit the use of the popular investment platform in an effort to help small investors acquire capital and additional protections under the law.

Regulators adopted A+ Offerings, which in turn expanded asset classes to two tiers, ranked between $20 million to $49.9 million and $50 million and above.

In a statement released near the time of the adoption of the final rules, SEC Chair Mary Jo White stated he following: “There is a great deal of enthusiasm in the marketplace for crowdfunding, and I believe these rules and proposed amendments provide smaller companies with innovative ways to raise capital and give investors the protections they need.”

And investors are noticing. For the first time, accredited investors — or, someone who’s valued at $1 million and makes equal to or more than $250,000 per year — aren’t the only ones who can have a stake in crowd-sourced campaigns.

The regulations have gone a long way. Based on my experience owning my own share in one of these sites, they’re growing in popularity because they’re reaping returns. By next year, I expect the number of dollars invested in these sites to double.

Now, I’ve already identified the top brass in the real estate crowdfunding sites today, but I’ll also recommend a valuable place to search for reviews and rankings as well as stats on fees or other features on the hundreds of crowdfunding options available.

It’s called realestatecrowdfundingreview.com and it offers readers the top 100 real estate crowdfunding sites on the web today. So if you’re looking for facts and figures, check it out.

You’ll find that many these sites have similar components. Often, you’re presented with several properties detailing the project, the developer or investment group as well as their investment and project history and return.

By law, parties leading the crowdfunding effort will need to disclose the amount of money they’ve put in as well as their intent for the property.

As an investor, it’s your choice to drop a dollar in several properties or just one.

So take a careful look at your options and consider giving real estate crowdfunding a shot — I predict it’s here to stay.

Looking for the Latest Industry News? I’m Here to Help.

August 25, 2017November 11, 2016 by RealLaunch

We all know that weathering fast market conditions requires stamina, experience and, most importantly, knowledge. As an investor, it’s crucial to stay informed, but it’s not always easy to find the best place to look. (Besides MyNOI’s own news aggregating page.)

Lucky for you, I’ve already sifted through the multitude of options online and have compiled a list of the top five news outlets reporting on issues impacting commercial real estate investors today.

In all, CoStar Group Inc. leads the pack in providing investors market data and news impacting commercial real estate hubs across the nation. It’s a paid subscription service and is the largest publicly traded commercial real estate entity specializing in industry news and research.

The top news of the day often features a mix of high-stake commercial transactions, profiles on leaders in the industry and expert commentaries on market outlooks. The news team at CoStar is comprised of hundreds of researchers gathering the latest news on leasing deals, national trends, average expense rates and more.

A series of quarterly webinars are also published through the service and feature extensive analysis on the top four asset classes, including retail, office, industrial and multifamily.

Next is GlobeSt.com, which contains a plethora of original content about the latest in commercial real estate on both a national and local scale. The online edition of their business highlights real estate trends and analysis.

If you’re looking for news on some of the largest corporate players in the real estate game, look here.

Since 1999, Commercial Real Estate Direct has acted as one of the most outstanding sources of news specific to the real estate capital markets industry.

The daily news source is one of the top places to look for data, including its property sales database and others, detailing pricing surveys, a calendar of upcoming transactions and more.

The Wall Street Journal is next on my top list of places to search for industry news. The seasoned team of real estate reporters produce work that is no less than exceptional.

The commercial real estate branch of the site focuses on the big picture, detailing market data, buyer trends and the latest stats on property stock. On a global scale, the outlet leads in highlighting some of the biggest transactions taking place on the market today.

Finally, I have to give a shout out to the CCIM Institute (Certified Commercial Investment Member Institute). A subset of the National Association of Realtors, the organization’s monthly magazine tackles industry-wide issues and sets forth on predicting trends for the future.

It’s an incredibly valuable source for analysis on a wide spectrum of issues. The website also provides an ample amount of professional resources for aspiring and active investors.

The Dos and Don’ts of Property Management Software

August 25, 2017November 3, 2016 by RealLaunch

Central to the business of brokerage, leasing and investing is property management. To maintain a smooth operation, it’s crucial to pick the right property management software.

As an owner of a property management company, in addition to my brokerage and development business, I can tell you the dos and don’ts of property management software options online today.

Do: TenantCloud

The software is free to use for up to 75 units and operates on the cloud. With just a few clicks, you can access details on the property, rental regulations and more. Not only that, but the software allows users to pay bills in minutes. TenantCloud makes it easy to record payment information into a concise report that can easily be stowed away for record keeping.

The small team at TenantCloud also offers a service to renters, looking for an efficient application process and easier route of communication to landlords.

Do: Buildium

Dubbed the “property management software designed by property managers,” the software excels in usability. Buildium is also cloud based and is an optimal option for all types of computer users, making it easy to introduce the software to employees and others new to the portal.

In 2015, the software received recognition by Inc. 5000 for the fourth year in a row and has grown its user base to more than 12,000.

Don’t: Yardi Systems Inc.

If you’re looking to save a buck, don’t look here. The price point begins at $10,000 to $15,000 just to implement the property management software and an added $15,000 to $25,000 to purchase it. I’ve reviewed the trials and while it comes in handy for residential and commercial management, the barrier to entry is just too steep.

The company has a staff of 5,000 with offices in 30 locations throughout North America, Europe, the Middle East, Asia and Australia and claims to have set the standard for real estate software solutions.

Do: AppFolio

I’ve been using this software for more than two years and, by far, it’s my favorite. The software is managed through the cloud and can be easily accessed on a mobile device. At any time, I can login and get a clear snapshot of the status of a property, including details on delinquencies, rent collection and more.

To say the least, it’s a time saver. It even helps out with the dreaded triple net reconciliations which need to be completed by the end of the year. Before purchasing the software, which costs $1 per unit, my staff and I spent months tallying up the costs. Now, with just the tap of a button, it’s done in a matter of seconds—forget the pen and paper.

I recommend testing out all of the software I’ve mentioned on the list. Talk to people, do your research, ask the right questions and see what works for you.