REAL ESTATE INVESTORS NETWORKING OPPORTUNITY

“Passive Income” is a term that most people use to describe Real Estate. However, every real estate investor knows that while properties can produce cash flow, building a portfolio requires hard work. Most of that hard work is involved leveraging the right people: agents, contractors, bankers, and other investors. To build a network of reliable people, investors must put in the effort to make these connections.

Why Real Estate Networking is Important

Expanding one’s circle of contacts can put new opportunities on an investors radar screen, which might have otherwise been missed. Investors never know when someone they meet at a seminar will reach out with some information about a good deal. The wider the net an investor casts, the more fish they will catch!

When a person invests in real estate, they are often faced with issues that require expert assistance. They might need a good contractor because their primary contractor is already busy, or a good tax advisor who understands the ins and outs of real estate taxes. Real Estate Investors could find themselves needing a real estate agent who is familiar with a specific area to help them expand into a lucrative neighborhood. Whatever the case may be, having an established network will help Real Estate Investors connect with the right people when they need them most.

As every entrepreneur knows, you never want to have all your eggs in one basket. Creating an extensive network will help savvy investors tap into other areas outside of real estate in their quest to generate wealth. Having a large network can set investors up for the possibility of finding other types of investments, such as startups, retail operations, and stocks. Investors might have read about all these different avenues of cash flow, but it is not always about what someone knows. Allot of the time, it is about who someone knows.

Attend Industry Events

Industry events, seminars, and get-togethers are a great place to network with buyers and sellers—and many other types of real estate professionals. For starters, people in the real estate industry will congregate at these events, giving investors an opportunity to network face-to-face, which is the best and most impactful form of networking. Investors also have the chance to meet high-powered investors and successful real estate agents. Continuing education is also available at these events through classes, keynote speakers, and workshops. Some of these classes will help investors get a better grasp of important topics like real estate negotiation and real estate marketing.

These events can provide a social outlet, which is a great way to strengthen the connections investors make with people in their network as they get to know them. People tend to go out of their way for people they know and like. To that end, networking groups and events can be a great way to deepen the relationships in their growing real estate investment network. Check out information on our next Real Estate Investor networking opportunity: The Real Estate Investors Summit.

Learn How to Network Well

Networking takes effort, but it also requires skill. Anyone can post on Facebook, but people who develop their networking skills will find that they build the most meaningful, impactful connections. The art of networking successfully involves many components, such as social manners and tact, body language, and how to express oneself.

Real Estate Investors may want to pick up some tried-and-true literature on the subject, such as How to Win Friends and Influence People by Dale Carnegie (it has been a cornerstone of sales and marketing for almost a century). Somewhat ironically, investors can even reach into your network to ask how to network well. Investors can ask socially successful people in their network for tips. They may be surprised to learn that many of them focus on diet, exercise, and mental health—especially around the areas of confidence and anxiety—to improve their game.

Real Estate Networking

Building a real estate portfolio is easiest to achieve when investors have a network of people to help them. Investing in real estate is not just about investing money; it is also about investing time. Networking is one of the most important skills a real estate investor needs to be successful.

Whether an investor is renting properties or flipping houses, it’s important to reach out to dependable contractors, bankers, agents, property owners, and other investors in order to grow and maintain their portfolio. Without a good-quality network, investors will find that real estate investing is full of challenges that are difficult to overcome alone. But with an extensive, ever-increasing network at their back, they will be ready to take on the world—one deal at a time.

The Real Estate Investors Summit: Itinerary

The Real Estate Investors Summit Itinerary

This year we kick off with our inaugural annual real estate event, “The Real Estate Investors Summit”, on March 26 & 27, at The Woodlands Waterway Marriott Resort & Convention Center.

To our online spectators, please make sure to register for the event! Once you do, you will receive a zoom link (the day before the event) and you can tune in to all, or just your favorite, presentations!

For our in-person attendees, there will be an early bird registration Thursday evening for all participants arrival early to enjoy the Resort. Details will be sent out to all registered participants. Please also note Friday night dinner will be offsite, but within a beautiful walking distance down the waterway. If you require special accommodations, please email events@investor-events.com.

We are almost to capacity for in-person attendees, so please register to save your seats!

Online Qualified Investors, Don’t Forget- You Need to Register!

*ATTENTION* investors that plan to attend this event online, you must register to receive the virtual event link!

Make sure you reserve your spot! We have a limited number of virtual attendees for this event, and we don’t want you to miss out!

How to Register for Virtual Attendee:

STEP 1 –

Click the button above and follow the link, in the new window that will open.

STEP 2 –


There are two registration opntions.

Choose the second option “Online Investor Attendee.”

STEP 3 –

Select “1” from the drop down.

Only 1 attendee per email.

STEP 4 –

Select “Get Ticket” button.

Select “Check Out.”

Step 5 –

Fill out name and email address.

Make sure to select “Keep me updated on the latest news, events, and exclusive offers from this event organizer.”

Select “Register.”

The week prior to The Real Estate Investors Summit, all “Registered Online Attendees” will receive the zoom link to participate in this event vitually.

Step 6 –

Try to contain your excitment until March 26!

Enjoy! Participate in chats, connect with other attendees! No reason you can’t network with the rest of our virtual audience.

NO ADVERTISING ALLOWED IN CHAT – Attendees that are found advertising in the chat will be immediately ejected.

Meet Our Expert Presenters: Randy Hughes

Rundy Hughes, Mr. Land Trusts

He started life out on the wrong side of the railroad tracks. His father was an alcoholic and his mother was left to raise four children on a clerk’s wages. None of his relatives owned their own business . . . everyone worked for wages.

His father charged the weekly groceries so that the family would have food on the table. There was no stable income for any future education much less the current needs of the family.

No intellectual or financial direction was taught in his schools or church.  No blood relative had anything to offer other than “working for the man” at an hourly wage. Bank savings and financial security was what only the rich had. He was doomed for financial failure and unhappiness for the rest of his life.

Randy knew that there MUST be a better way to live. He decided to break the cycle of poverty in his family genes. Education came first. Randy graduated from Eastern Illinois University and began buying single family homes for rental while in college. After college, the Randy tried many different types of businesses, but always came back to the Single Family Home as the IDEAL investment. Since purchasing his first rental house in 1969, Randy hasn’t looked back!

Today, Randy has purchased over 200 houses. He has lived the life of having nothing and will not let that happen again. Randy’s primary goal now is to teach others how to break the cycle of poverty. Randy teaches real estate investment courses throughout the United States. He has written Privacy and Asset Protection books as well as home study courses. Randy’s most popular publications are his Land Trust Made Simple® home study courses and live seminars.

Randy has written extensively for local and national real estate publications. He has taught real estate classes at the University of Illinois, Parkland College and Elgin Community College.  Randy has been a licensed Continuing Education Instructor for the Illinois Association of REALTORS® for 25 years. He also speaks to real estate investment clubs throughout the United States. Randy teaches classes on how to protect your assets and how to become more private with your personal life. He also teaches land trust law and administration, authors the only Land Trust Newsletter and Blog in the country and is the founder of the Land Trust University. Randy is an Expert Author for EzineArticles.com, REIClub.com and is a faculty member for Lorman Education Services in Eau Claire, WI. Randy is also a Faculty Advisor for Realestatemogul.com and serves as an advisor and contributor to Jeffery Taylor’s Mr. Landlord Newsletter and Website.

Randy Hughes, Mr. Land Trusts

Register for The Real Estate Investors Summit to view Randy’s presentation “Land Trusts Made Simple: The Cornerstone of Financial Security”, online or in-person.

The Real Estate Investors Summit 2021

The Real Estate Investors Summit

The Real Estate Investors Summit is kicking off in The Woodlands Texas on Mar 26th & 27th. With a beautiful venue to enjoy loads of networking, presentations, delicious meals, investment strategies & more, you do not miss this opportunity!

Registration is free for all qualified investors.

This is a laid back, exclusive, educational environment for investors to get up close with industry experts. Affluent ­­subject matter experts to present, such as Paul Hood, Carrie Cook, Howard Robbins, Kyle Jones, Teri Walter, Monty Galland, Jack Glaw, Rochelle Carroll, David Randolph, and Randy Hughes!

Investor Events will be sponsoring The Kids Unlimited Foundation at The Real Estate Investors Summit.

Assessing 10 Different Types of REITs

Real Estate Investment Trust REIT

Real Estate Investment Trusts are important for investors to consider when constructing their equity or fixed-income portfolio. Most investors start to consider this option when seeking greater diversification because of potentially higher total returns and/ or lower overall risks. In short, their ability to generate dividend income along with capital appreciation makes them an excellent counterbalance to stocks, bonds, and cash. [1] To qualify as a REIT, according to industry group NARIET, a company must meet some strict requirements, including distributing at least 90% of taxable income to shareholders as dividends and investing at least 75% of assets in real estate.

It is important for investors to understand each of the most popular REITs to choose what could work best for them.

Equity REITs

Generally, the term “REIT” is used about an equity REIT. The high dividend payout requirement for REITs means that a larger share of REIT investment returns comes from dividends when compared with other stocks. For this reason, many financial advisors consider equity REITs to be well-suited for investors seeking income, as well as for long-term investors seeking both income plus capital appreciation. [2]

Mortgage REITs

mREITs provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on the investments.

Retail REITs

Retail REITs own and manage retail properties in central business districts and upmarket areas. This type of REIT makes money by leasing space to tenants, who pay monthly, quarterly, or annual rent. Ownings shares in retail REITs provides investors with an opportunity to earn high returns since the retail properties appreciate over time. [3]

Hospitality REITs

This is somewhat a broad category that includes an REIT whose properties provide accommodations, entertainment, dining, or combination of these services.

Residential REITs

This is a REIT that owns and operates rental properties. Whether it be multi-family, urban high-rises, student housing, short term vacation rentals or single-family property rentals. Everyday investors can put their money in assets that are out of most people’s reach. A good example of this is that most individual investors cannot afford to buy property in high value areas, but there are a few residential REITs that allow these same individuals to invest in them.

Healthcare REITs

Healthcare REITs have been core holdings in many retail and institutional investors’ portfolios, especially those geared towards long-term growth. The stability of the healthcare sector means that healthcare REITs are more recession-proof and offer less risk than other types of REITs. [5]

Office REITs

Office REITs own and manage office real estate and rent spaces in those properties to tenants. Those properties can range from skyscrapers to office parks. Some office REITs focus on specific types of markets, such as central business districts or suburban areas. [6]

Data Center REITs

Large companies store their data on servers held in secure, offsite locations. A data center REIT will invest in facilities like these. And as we become increasingly dependent on technology, it is likely that data center will remain good investments. [4]

Public Non-Listed REITs

PNLRs are registered with the SEC but do not trade on national stock exchanges. Liquidity options vary and may take the form of share repurchase programs or secondary marketplace transactions but are generally limited.

Private REITs

Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Private REITs generally can be sold only to institutional investors.

Things to consider:

REITs are historically one of the best-performing asset classes available. [1] REITs can be analyzed much like other stocks, as dividend-paying stocks, but there are some big differences due to the accounting treatment of property.

  1. REITs are true total-return investments. They provide high dividend yields along with moderate long-term capital appreciation. [2 ] Seeking a company that has done a good job at providing both should be at the top of an investors list.
  2. Many REITs are traded on stock exchanges, unlike traditional real estate. This option allows investors to reap the diversification benefits real estate can provide, without being locked in long-term, creating more flexibility. Liquidity is invaluable!
  3. Investors will analyze funds from operation (FFOs) instead of using the payout ratio that dividend investors are used to because with REITs, depreciation can overstand an investment’s decline in property value. Investopedia says this is defined as net income less the sale of any property each year and depreciation. Investors can simply take the dividend per share and divide by the FFO per share.
  4. Companies that have been around for a while and possess a team with deep experience will most likely yield higher for their investors. Strong management matters!
  5. Investors should go for quality, not quantity. A few REITs with great properties and great tenants are far superior to many REITs with below par properties and unreliable tenants. Quality is king!
  6. Another option some investors make is to just buy a mutual fund or ETF that invests in REITs. That leaves all the due diligence, research, and buying up to the pros!

References:

  1. “5 Types of REITs and How to Invest in Them” Will Ashworth, Investopedia, August 31, 2020
  2. “Why Invest in REITs” National Association of Real Estate Investment Trust (Nareit), accessed February 4, 2021
  3. “What are Retail REITs?” Corporate Finance Institute, accessed February 3, 2021
  4. “What Are the Different Types of REITs?” Barbara Zito, Motley Fool, October 07, 2020
  5. “Healthcare REITs: A Dose of Durable Dividends” Brad Thomas, Investopedia, March 5, 2020

How will the Covid Pandemic Impact the Real Estate Market in the United States in 2021?

Investor Events Blog 3

When seeking opportunities to diversify one’s portfolio, real estate investing can be a great way to accomplish that goal! Along with generous tax benefits, this asset class provides good potential for passive income, and value appreciation.

Investors would be wise to recognize the illiquid nature and risks/ rewards involved with real estate investing during the volatile economic downturn that the coronavirus pandemic caused. Stay-at-home orders and health concerns led to fewer buyers looking for homes and fewer sellers listing their properties in fear of allowing strangers to enter their homes during the pandemic.

Covid-19 has created a broad spectrum of impacts across various property types. It is still too early to be certain what the long terms affects will be… But there is one thing we are aware of; the dynamics of the current crisis have caused short-term dislocation in some of the real estate asset classes that may worsen throughout the first half of 2021.1

Residential Real Estate

The housing market outlook is uncertain because of the abrupt economic recession and steep unemployment rates throughout the majority of 2020. However, according to University of Michigan2, buying conditions for houses have improved and are back to where they were pre-pandemic.

Housing Rentals

An estimated 14 million adults are living in rental houses, and nearly 1 out of 5 are not yet caught up on their rent, according to data collected in December of 2020. 3 Furthermore, it is reported that 1 in 3 U.S. adults had trouble paying for usual household expenses in the last 7 days. 4 Unfortunately, it looks like house renters will continue to struggle and rental assistance programs are needed. These effects on individual housing markets will vary widely.

Industrial Real Estate

It is believed that due to the increase in online shopping and the subsequent need for warehouse and logistics space for e-commerce has helped Industrial Real Estate hold up better than any other property types during the pandemic. Industrial property cap rates averaged 6.7% towards the end of 2020, which is in line with the pre-pandemic levels. Investors should be mindful that a slower economic recovery, or another shutdown, could weaken demand for domestic and international goods, or potentially lead to supply chain disruptions.5

Commercial Real Estate

Apartment Rentals

Apartment buildings are often considered commercial, even though they are used for residences. Short term, covid-19 has resulted in lower rental rates and higher vacancy rates. According to the National Multifamily Housing Council, approximately 95% of tenants have paid rent throughout the pandemic because the federal government helped to provide relief.5

Office Rentals

Now that we are into this pandemic, by almost a year, companies and employers can assess the operating expenses and value that come along with renting office space. While most employers feared that team productivity would plummet, in several high-profile cases, employers found the opposite!

  • Google declared in March that all of its’ roughly 100,000 North American employees should work from home. Since then, the company has reopened some offices but in late July, the employer extended employees a voluntary work from home option through July 2021. 6
  • Outdoor retailer REI, in a bid to control costs, just put its brand-new Seattle office headquarters up for sale before even setting foot in it. REI is choosing instead a combination of multiple smaller offices and increased employee work from home options. 7
  • The pandemic has led to a near-term flight from the urban cores, resulting in companies executing fewer and shorter leases and putting their unused space on the sublease market. Dramatic declines in office leasing activity and rises in office sublease space available are now appearing in market surveys of diverse and some of the strongest pre-pandemic office markets. 8

Some companies will be forced to continue to cut costs, and office rent is a significant expense for most organizations.

Retail Rentals

Even prior to the pandemic, the retail sector of real estate has been on a downward turn, led by a shift from brick-and-mortar to e-commerce. By most estimates, the pandemic not only accelerated the e-commerce trend, reflected in the regional mall component of the Nareit (National Association of Real Estate Investment Trusts) Equity Real Estate Investment Trust (REIT) index being down around 50% year-to-date. 9 Stay-at-home restrictions and e-commerce have hit mall owners and lenders hard, especially enclosed malls. Retail property owners focusing on shoring up existing holdings rather than committing to major new projects or ambitious capital improvement plans.

Real estate is a very diverse asset class and the pandemic served to emphasize these differences. The coronavirus pandemic certainly made real estate investors consider defensive positions and has shifted the American investors perspective during these unparalleled and unpredictable times. It can be especially important in 2021 to enlist the services of professional real estate asset managers, who can help strategize defensively, preserving cash flow while positioning assets and portfolios for future market opportunities.

  1. “The Impact of Covid-19 on the Residential Real Estate Market”, Federal Reserve Bank of St. Louis; Charles S. Gascon, Jacob Hass, October 6, 2020
  2. “Surveys of Consumers”, University of Michigan, 2020
  3. “Tracking Covid-19 Recession’s Efforts on Food, Housing, and Employment Hardships” Center on Budget and Policies Priorities, January 8, 2021
  4. “Analysis of Census Bureau Pulse Survey”, CBPP, December 9-21, 2020
  5. “Reassessing Real Estate Investments During the Coronavirus Pandemic”, Wells Fargo Bank, October 2020
  6. “Google tells more than 100,000 North American employees to stay home amid coronavirus fears.” CNBC, March 20, 2020.
  7. “Outdoor giant REI planned a lush new headquarters complete with real campfires, but it’s going up for sale before it has a chance to open.” Business Insider, August 13, 2020.
  8. “Amount of Office Sublease Space Rises Rapidly in Some Markets in Response to Sputtering Economy.” CoStar, July 23, 2020.
  9. “FTSE Nareit U.S. Real Estate Index Series Daily Returns.” Nareit, October 22, 2020.