STR investor platform closes up shop 🛑

GM, investors. Grab your morning brew, and let's dive into today's hot picks:

•  Goodbye, here.co: Popular short-term rental investor platform closes up shop.

• Negotiating commissions: How to negotiate with your RE agent for commissions.

•  RE investing for rookies: A beginner-friendly gateway into real estate investing.

• 🔥 Deal of the Day! 🔥: 3 bd | 3 ba | Sugar Mountain, NC

Here.co closes up shop

Remember Here.co., the innovative short-term rental investment platform? Launched back in 2022, Here.co. aimed to democratize the vacation rental investment market by offering fractional ownership in lucrative properties. The idea was simple yet revolutionary: lower the barriers to entry for real estate investing by making it affordable for anyone to own a piece of a vacation rental. Investors could jump in for as little as $100, snagging shares in properties handpicked for their high earning potential in the short-term rental market.

Now, let's talk numbers, because that's what really matters, right? Take their "Sunburst" offering – a cozy 1,200-square-foot home in sunny Clearwater, Florida. This gem could sleep up to six guests and was a hit on Airbnb, consistently booked months in advance at an average rate of $227 per night. Investors were gobbling up shares at $1 each, with a sweet minimum investment of just 100 bucks. The property itself appreciated nearly 27% in value in just a year, a testament to the booming real estate market in sunbelt states like Florida.

Another head-turner was "Enchantment," a charming 930-square-foot A-Frame house nestled in Tennessee's Smoky Mountains. With an average rental of $323 per night and a staggering 93% occupancy rate, this property was a no-brainer for investors seeking high returns.

But here's the twist in the tale: Despite its groundbreaking approach and the success of its offerings, Here.co. announced its closure in early 2024, citing the challenging economic climate and current interest rate environment. This turn of events is a stark reminder of the volatility and unpredictability in the realm of real estate investments. Even the most promising ventures can face unexpected hurdles.

Here's what's happening next: Here Investments Inc., the manager of each property series, is in the process of liquidating its assets. They're aiming to sell all properties within the next six months to maximize value for investors. While this may be an unexpected detour for Here.co., it's a pivotal moment for investors and industry watchers alike.

So, what's the takeaway for us as investors? This scenario underscores the importance of diversification and staying agile in the face of market shifts. The real estate investment landscape is constantly evolving, and while platforms like Here.co. offer innovative approaches, they also come with their own set of risks.

For those who are already part of the Here.co. ecosystem, keep an eye on Templum Markets, the portal that's handling the transition. They'll be your go-to for accessing your Here portfolio and withdrawing funds post-property sale.

In the world of real estate investing, it's clear that adaptability and keen market insight are key. As we watch the unfolding of Here.co.'s closure, let's stay tuned for the next big thing in the industry. And remember, whether it's a sunny Florida beach house or a charming mountain retreat, the right investment can still turn a pretty profit – it's all about timing and insight.  (source)

The art of negotiation

Negotiating real estate agent commissions isn't just possible; it's a smart move that can save you a pretty penny. Here's a breakdown of what you need to know:

Understanding Real Estate Commissions: Typically, these are a percentage of the home’s final sales price. For example, a 6% commission on a $400,000 house would mean $24,000 for the agents involved. This fee usually covers both the buyer's and seller's agents. And yes, it's the seller who generally foots the bill.

Negotiating Power: Your ability to negotiate effectively hinges on a few factors. If you have a high-value property, a hot local market, or if you're both selling and buying with the same agent, you've got more leverage. Agents are more inclined to accept lower commissions in these scenarios because they can still make a good profit.

The Art of Negotiation: Start by interviewing multiple agents to understand the market rates. When you make your pitch, justify your offer with solid reasons – maybe your home is in an exceptional condition or located in a sought-after neighborhood. Remember, data is your best friend here.

Securing the Deal: If an agent agrees to a lower commission, get everything in writing. Ensure that the agreed-upon rate, scope of services, and other terms are clearly outlined in the contract.

Exploring Other Options: If negotiations don't go your way, don’t despair. Consider alternatives like discount brokers or flat fee MLS companies. These options can offer significant savings, though they may come with trade-offs in terms of service level.

Potential Drawbacks: Be aware that negotiating a lower commission might impact the agent's motivation and the level of service you receive. Agents earn through commissions, so a reduced fee might mean less marketing effort for your property.

Pro Tips for Sellers: Enhance your home’s appeal with improvements, even minor ones. A fresh coat of paint or a well-manicured garden can increase its marketability and strengthen your negotiating position.

BATNA – Best Alternative to a Negotiated Agreement: Always have a backup plan. If the agent doesn't budge on the commission, be ready to look for other agents or consider different fee structures.

A Note on Dual Agency: Be cautious with dual agency situations (where one agent represents both buyer and seller). It's controversial and even illegal in some states due to the potential conflict of interest.

Discount Brokerages: These can be a cost-effective alternative, offering lower rates for similar services. However, they might not provide the same level of personalized service as traditional agents.

In the competitive world of real estate, every dollar counts. Negotiating agent commissions is a strategic way to maximize your financial outcome. Whether you're a seasoned investor or a first-time home seller, understanding these nuances can lead to significant savings and more favorable deals. So, put on your negotiating hat and get the best value for your realty transactions! (source)

Easy ways to get started with real estate

Here's a comprehensive guide on how to dive in and potentially make a fortune, no matter your experience level.

1. Prehabbing Properties:

Think of prehabbing as giving a property a facelift. It's about minimal risk and quick returns. Look for structurally sound properties needing simple cleanups rather than major repairs. This strategy is perfect for beginners, offering the thrill of real estate investment without the heavy lifting of major renovations.

2. Real Estate Investment Trusts (REITs):

REITs are a fantastic starting point for novices. They're companies owning income-generating real estate, and you can buy shares in these. REITs are known for paying generous dividends and are a solid way to dip your toes into real estate waters without diving headfirst into property ownership.

3. Online Real Estate Platforms:

These platforms, also known as real estate crowdfunding, connect investors to developers needing funds. You can choose to invest in various projects, enjoying the benefits of real estate investment without direct involvement in property management.

4. Buying Rental Properties:

If you're ready to play landlord, rental properties can offer steady income. This approach requires more involvement, but the payoff can be substantial, covering your expenses and even leaving a profit. Consider "house hacking," where you live in part of the property and rent out the rest.

5. Real Estate Syndication:

This is about teaming up with other investors to buy properties. Typically, one partner finds and manages the investment, while others provide the capital. It's a partnership where everyone plays a role, and the profits are shared.

6. House Flipping:

Popularized by TV shows, flipping involves buying underpriced homes, renovating them, and selling for profit. It requires market knowledge, renovation skills, and capital but can be highly rewarding.

7. Invest in Bigger Real Estate Deals:

Platforms like Fundrise or RealtyMogul allow you to join bigger real estate deals with relatively small investments. It's a way to get involved in larger, potentially more lucrative deals without needing substantial capital.

Remember:

Real estate investments come in various forms, each with its risk and reward profile.

Consider your financial situation, time commitment, and risk tolerance before diving in.

Diversify your investments to balance risk.

Real estate investment isn't just about owning properties. It's about smart strategies, whether it's flipping houses, renting properties, or investing in REITs. Each method offers unique benefits and challenges, so choose the one that aligns with your goals and expertise. (source)

🔥 Deal of the Day! 🔥

Address: 304 Slope View Road UNIT -A-139, Sugar Mountain, NC 28604

The projected cashflow is negative, but the property at 304 Slope View Rd, Sugar Mountain, NC, offers a unique vacation rental opportunity with its prime location nestled in the Ski Slopes of Sugar Mountain and a walking path leading directly to the ski slopes. This fully furnished 4BR home has been recently updated, including new flooring, fresh paint, a new aluminum roof, and more. It features vaulted ceilings, stainless steel appliances, three decks for entertainment with beautiful views, and a spacious primary bedroom with direct deck access and an en-suite bathroom. Additionally, the home is equipped with a hot tub, arcade machines, and all furniture, making it fully move-in ready and an ideal paradise for guests

Airdna data:

Estimated monthly payment: $4,398/month

Estimated monthly revenue: $2,841/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Real estate is a realm of endless opportunities, and every investor has a key role to play. Whether you're sprucing up properties, collecting dividends from REITs, or funding the next big development project online, there's a strategy for every style. Ready to unlock your potential? Keep exploring, keep investing, and keep turning those keys!

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