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5 Mistakes to Avoid When Investing in Commercial Real Estate

Investing in commercial real estate promises lucrative earning opportunities. To maximize all this potential, you must know the right steps to take – as well as the crucial ones to avoid – throughout this endeavor.

On this page, The Metropolist Group focuses on the latter. Here are five common missteps and oversights that can derail your investment:

1. Doing everything on your own

If you want a stress-free and cost-efficient experience when you purchase a commercial property, work with a real estate professional.

Look for an agent who has experience in the commercial property market, especially involving your preferred type of property (e.g. office space, retail space, industrial building, etc.). Their expertise and local professional network will be your invaluable resource as you navigate the property buying process from start to finish.

2. Using inaccurate property valuations

Paying more for what a property is actually valued on the market will snowball into larger losses for your business in the future.

Before agreeing to any deal, make sure that you are aware of every feature, highlight, and even flaw of the property you are buying. Equally as important is knowing that are spending the right amount for it.

3. Failing to perform due diligence

One thing in common between commercial and residential properties is the necessity for due diligence before closing any deals.

For commercial real estate investors, several factors are necessary to make deliberate, fully informed decisions. Examples include:

  • A full inspection of the entire property
  • Reviewing the lender’s underwriting requirements
  • Assessing the location relative to the nature, purpose, and target market of your business
  • Understanding how local zoning ordinances affect how you can use the property
  • Conducting a thorough risk assessment for the investment
  • Reviewing the business profiles and existing leases of current tenants
  • Searching for potential hidden charges in the property’s sale terms

 Simply put, always take your time when buying commercial real estate – even if you are competing against others for your targeted property. Act only when you are sure that the investment puts you in a position to generate returns, rather than incurring losses.

4. Focusing primarily on the return on investment

A commercial property’s projected return on investment (ROI) often stands out as a useful indicator of its viability as an investment asset. But don’t limit your decision on this factor alone.

Consider cash flow, property appreciation, and how much equity you gain as you pay off your mortgage. Inquire about any tax benefits that you may qualify for when you purchase a commercial property.

5. Lack of planning and foresight

Acquiring commercial real estate requires significant long-term planning. Equipped with a feasible business plan, consider your company’s growth trajectory. Will the commercial building be able to accommodate an increase in personnel and equipment?

Planning ahead also involves coming up with an exit strategy. Whether or not your investment pays off, an exit strategy will enable you to facilitate a smooth transition to your next move.

Make the most out of your commercial real estate investment opportunities in the Seattle metropolitan area. Get in touch with our experts today by calling 206-623-5118 or emailing [email protected].

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Here’s Why You Should Buy a Home During the Winter

With the holidays over, heading into the coldest months of the year, many people might assume that now is a terrible time to buy a home. However, now is the best time to score a deal on that dream house!

Here are a few reasons why it may be in your best interest to buy a house this winter:

Motivated Sellers
The colder months tend to see less activity as far as listings and sales go. This may seem like a disadvantage; however, if you’re able to find a house that meets your needs, chances are you’ll also have found a motivated seller. The majority of homes are listed in the spring/summer, so if you’ve stumbled upon a listing that’s been on the market for a while, the seller will likely be ready to negotiate.

If the home is newly listed, the seller may be eager to sign a contract before the new year. Tax implications or forced relocation are a few reasons sellers will be willing to accept lower offers.

Less Competition
We’ve all heard the story of the dreaded bidding war. It seems today’s market is seeing this happen more than ever. Not only can it drive the price of the home above asking; you also run the risk of emotional overspending or losing the property altogether.

With the majority of buyers taking a break from house-hunting, now is an optimal time to start your search. With the likelihood of competing offers dropping significantly, buyers can regain some control during negotiations.

Lower Interest Rates
This is not a guarantee, however. Loan and mortgages interest rates fluctuate throughout the year, and historically hit lows during the holiday season. With less people looking to buy and borrow right now, interest rates tend to dip, which is a bonus for borrowers.

It may appear to be an insignificant rate difference; however, over the term of your mortgage, you’ll be in for some serious savings! So while you’re out and about this winter, make a trip to your bank for a mortgage pre-approval!

Professional Availability
With fewer homes on the market, real estate agents tend to find themselves with more overall availability. If you’re ready to buy a home, you’ll benefit, as your REALTOR® will have more time to dedicate to your search and negotiation once your dream home is found.

Not only does the real estate market slow down during the winter, so do related professions. Mortgage brokers, home inspectors and legal professionals all may have some extra time on their hands, meaning your deal may be able to close quicker.

Buying a new home during the winter can seem like a daunting task; however, if you’re able to close on a deal in January or February, chances are you’ll be enjoying the benefits for years to come! Lower purchase price and better interest rates are just a couple of the reasons why buying that dream house right now may be worth it!

This was originally published on RISMedia’s Housecall.

Elizabeth La Riva, (R) ABR®, e-PRO®, MRP, is a native of Lima, Peru, and speaks fluent English and Spanish. She services the area of Oahu, Hawaii, and assists buyers and sellers with their real estate transactions. In her spare time, she enjoys volunteering and giving back to the community.

Photo by Tracy Adams on Unsplash

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Real Estate Teams: Forget About Life Balance and Focus on Harmony

I was recently on a call with a client. She was sharing with me all of the challenges she had over the holidays. She ran down the list of things that she had to do and the things that she did not get to do that she would have rather done, and how it was all out of balance. She told me it was hard to focus at work, because she was thinking about everything she needed to do at home, and vice versa.

I am always fascinated by the words people use. Often when discussing time management, “balance” is used. Trying to create balance is the biggest mistake we make.

Balance is defined as a condition in which different elements are equal.

There are 168 hours in a week. We spend probably 56 sleeping; 40 (or more if we are being honest) working; another 20 grooming, running errands, cooking and meal prepping; five to six exercising; five to six commuting…the numbers add up fast and the time left over for life diminishes every time you add an hour to any of those, or even other activities I missed. It is out of balance, and likely always will be.

Now, consider harmony—a consistent, orderly or pleasing arrangement of parts; congruity.

Notice the concept of equal is not mentioned.

Time management is not about making the scales equal; it is about making the most of the time you dedicate to each part of your life and making sure you are making the highest and best use of your time. It is about being 100-percent present in whatever you’re working on. Jim Elliot said it best: “Wherever you are, be all there.” We would all do well to put this into practice.

Imagine if you followed your time-blocking plan and committed to it at that level. When you were at work, you followed a schedule that focused on money-making activities first and foremost. When you were at home, you were present—not with your face buried in a phone, telling your family to give you 10 minutes because you just need to review a contract really fast. Really present and in the moment.

This harmony is deliberately built and a critical foundation of a life by design.

There are times when we have to dig in and work more, and there are times our personal lives need more focus. It cycles as we grow our teams and businesses and grow personally. When you’re deliberate about the choices you make with your time, you’ll achieve harmony, even when it’s not balanced.

Plan to do your highest and best tasks with the available time. Commit to it. And wherever you are, be there.
By Sara Guldi
Sara Guldi is a 15-year veteran of real estate. She lives in Florida and co-owns a team in Maryland. In their best year, the group did $64 million in production, and they attribute their long-term success to a strong commitment to systems and coaching. Guldi loves helping others build amazing business and lives using the performance coaching systems developed by Workman Success Systems. Contact her at [email protected]. For more information, please visit www.WorkmanSuccess.com.

Photo by Austin Neill on Unsplash

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Buying a Home Early Can Significantly Increase Future Wealth

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.

The good news is, our younger generations are strong believers in homeownership.

According to a Freddie Mac survey,

“The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials.

Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).”

Buying a Home Early Can Significantly Increase Future Wealth | MyKCMIf these aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have.

Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive homes.Buying a Home Early Can Significantly Increase Future Wealth | MyKCMAlthough the vast majority of Gen Zers want to own a home and are somewhat confident in their future, “In terms of financial awareness, 65% of Gen Z respondents report that they are not confident in their knowledge of the mortgage process.”

Bottom Line

As the numbers show, you’re not alone. If you want to buy this year but you’re not sure where to start the process, let’s get together to help you understand the best steps to take from here.

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Start 2020 Right With an Event for Real Estate Agents

The real estate sector is currently undergoing a time of unprecedented change, and there are more challenges ahead in 2020. This makes it critical to stay at the top of your game in order to stand out and succeed. When you attend an event for real estate agents, you set yourself up with tools and strategies for a great year. There are a few challenges facing the industry right now that the right real estate event will help you overcome.

The Real Root of Disruption

Disruption starts with unhappy customers, not with technology. The truth is, many customers are dissatisfied because inexperienced, unskilled agents aren’t meeting their needs. This is the silent disruption happening in the industry today.

Future Fears
Even though the economy is solid, people tend to latch onto fears of where it’s going. An increasingly negative news cycle filled with trade disputes and a tense political climate are causing Americans to become more anxious. This can affect clients’ decisions to enter the real estate market.

Seek out an event with industry professionals and like-minded agents in your area to learn skills and tactics to address these challenges. Here’s what an event for real estate agents will do to get you started on the right foot.

Build Your Skills
There’s no secret formula or quick fix for success. You must consistently dedicate time for real estate training and skill development that’s based on an effective system. An exceptional real estate event should elevate your professionalism and your skills, which will help you stand out from the crowd in a rapidly changing environment.

Increase Your Level of Service
In this digital-first environment, it’s vital to focus on the customer. Agents must go above and beyond to provide an exceptional client experience that tech can’t replicate. Seek out a real estate event that gives you the opportunity to brainstorm with top-producing agents and take home new strategies for providing high-quality service.

Transform You Into a Total Pro
To skillfully deal with the negative news cycles and market fears, agents must be confident, reassuring and armed with knowledge so that they can bring perspective that’s based in truth and fact. Become an expert in your field by attending an event for real estate agents so you can help your clients swap their market fears with unshakable facts.

If you want to discover what the most successful agents are doing, and start 2020 off on the right foot, consider attending an event for real estate agents this year. I’ll be leading the all-new Buffini & Company Master Class in 2020 for agents who want to network and learn from one another. Sign up and find out why Master Class is the best fit for your office.
By Brian Buffini

Brian Buffini immigrated to San Diego from Ireland in 1986 and became a top-performing REALTOR®. He then founded Buffini & Company to share his powerful lead-generation system. Buffini & Company has trained more than 3 million people in 37 countries and coaches more than 25,000 business pros. Today, Brian’s a New York Times best-selling author and reaches over 7 million listeners a year through “The Brian Buffini Show” podcast. For more information, please visit www.buffiniandcompany.com.

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A Closer Look at Community Colleges in King County, WA

Postsecondary education is an essential advantage for anyone who wants to establish a firm foundation of knowledge and skills when they enter the workforce.

For some, four-year colleges and universities are the default option to pursue this level of education. For others, a community college may prove a more practical and ideal solution.

In this article, The Metropolist Group takes a closer look at community colleges and where interested learners can find them in King County, WA.

What is a community college?

 Community colleges are official institutions that provide postsecondary education through short-term courses. They typically award diplomas, certificates, or associate degrees to students who graduate from their academic programs. “Community college” is an umbrella term but it is more commonly associated with public two-year colleges, whereas privately owned two-year institutions are alternately known as “junior colleges.”

 Who attends community colleges?

 Community colleges are by no means an inferior alternative to traditional four-year universities or colleges. These educational institutions are designed to deliver the education, training, and skill development needed by students whose specific needs or circumstances make the typical university environment unconducive for their full growth.

Community colleges are notable for having an “open access” policy, which ensures that a wide range of students will be able to participate in their various learning programs. This arrangement is ideal for:

  • Young students who are not ready to move too far from home
  • Older students, such as adults and professionals seeking new skills for a career change
  • Students who are looking for training or certification for technical jobs
  • Students who need preparation and credentials for entry-level jobs
  • Students who need a more flexible learning environment or schedule to balance other obligations
  • “Lifelong learners” or people who are interested in continuous learning throughout their lives

Another distinct advantage that community colleges can offer is affordability. In Washington, for instance, the average annual tuition at a public two-year community college falls around the $4,000 range. In comparison, four-year colleges can demand approximately $19,000 in tuition.

What are the leading community colleges serving students in King County, WA?

CommunityCollegeReview.com highlighted 13 outstanding community colleges in King County. These schools are serving more than 66,000 students in the 2019-20 academic year.

The website lists the following as King County’s top public community colleges:

  • Bellevue College (Bellevue, WA) – 13,649 students enrolled
  • Cascadia College (Bothell, WA) – 3,757 students
  • Green River Community College (Auburn, WA) – 7,915 students
  • Highline College (Seattle, WA) – 6,443 students
  • Lake Washington Institute of Technology (Kirkland, WA) – 3,660 students
  • North Seattle College (Seattle, WA) – 6,493 students
  • Renton Technical College (Renton, WA) – 3,359 students
  • Seattle Central College (Seattle, WA) – 6,773 students
  • Shoreline Community College (Seattle, WA) – 6,015 students
  • South Seattle College (Seattle, WA) – 5,535 students

Meanwhile, the website also cited the Art Institute of Seattle (1,378 students enrolled) and Pima Medical Institute (777 students enrolled in Renton and 760 in Seattle) as notable private, for-profit institutions.

The Metropolist Group is dedicated to helping homebuyers and newly relocated residents get to know the Seattle metropolitan area better. To learn more about the neighborhood or area that you are interested in, get in touch with our local experts. Call 206-623-5118 or send an email to [email protected] today.

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New Year, New You: How to Succeed in 2020

It’s hard to believe the New Year is already here! While others are busy setting New Year’s resolutions, it’s the perfect time for a real estate agent or team to prepare for a successful 12 months of selling houses.

Start with a business plan. Oftentimes, I find in coaching that agents are clueless when asked how many houses they need to sell in order to hit their financial goal, or they don’t even know how many houses they sold the previous year. If you want to have a successful 2020, you need to know the average sales price in your area and average commission, and do the math to determine the number of units you must sell in order to net your financial goal. Then take it a step further and determine how many face-to-face appointments you need to go on daily, weekly and monthly in order to produce the amount of transactions you need.

A business plan sets our goals and intentions within our real estate practice, but also encompasses five key areas of life: family, faith, fun, fitness and finances. When preparing a business plan, I like to start with the end in mind by asking this question: “If I were to call 2020 a successful year, what would I need to accomplish?” Set measurable, meaningful goals around each of the five key areas; put them in writing and share them with someone you trust to hold you accountable.

Create a 12-month marketing plan. Consistency is key to a thriving real estate practice. One holiday card each year is not enough to keep you top-of-mind to your database—and remember, everyone knows a REALTOR® that isn’t you. Take out a calendar and figure out what you can do each month to keep in touch with your clients, family and friends. There is a major holiday in almost every month throughout the year, as well as dozens of fun “National” holidays that can be used to market yourself. Your marketing plan should also include client appreciation events. The rule of thumb is six to eight times throughout the year, you should be belly-to-belly with your database. These can be as simple as quarterly happy hours to movie events, holiday open houses, Easter Egg hunts, Halloween boo-ing events or stopping by with an item of value to their home or workplace. Plan ahead and put it in your calendar.

Have a spending plan. We have to spend money to make money; however, we need a plan, and we need to track every penny coming in and out. You need to know your lifestyle number, which is the total sum of money you need to earn annually in order to fund all the important buckets in your life, such as your business, saving for retirement, taxes, college, etc. Lead with revenue in both your professional and personal life with a smart spending plan and you’ll succeed in 2020!

By Sarah Michelle Bliss

Sarah Michelle Bliss is a coach with Workman Success Systems. She has been in the real estate industry since 1995. Over the past 20 years, she has taught locally and nationally, and coached and influenced her peers through team management, agent development and training. Bliss is currently the director of Agent Development for a brokerage in Glendale, Ariz. For more information, please visit www.WorkmanSuccess.com.

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3 Questions Home Buyers Should Answer

Thinking of buying your first home or trading up?

A recent study by our friends at Fannie Mae shows that Home Buyers did not know the answer to these 3 important questions:

1.) What is the minimum down payment for a home?
2.) What is the minimum FICO (credit) score required to qualify for a mortgage?
3.) What is the Maximum Back-End DTI Ratio?

Many people were unsure how to answer these questions which is probably why a great number of people mistakenly think they don’t qualify for a mortgage or can’t afford to buy a home. According to Fannie Mae, the minimum Down Payment required is only 3%, and the minimum Credit Score to qualify for a mortgage is 620, which is a pretty average number. And what the heck does DTI mean anyway??? DTI stands for Debt To Income ratio. That is the amount of money you pay out to debt each month compared to the amount of income you bring in each month. So a maximum DTI of 45% means you can’t have more than 45% of your income go toward debt of all kinds including your mortgage. That way you won’t have to make a choice between food with your meals or paying the mortgage.

It is always important to arm yourself with knowledge before diving into any adventure!

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Metropolist Magazine Volume 1 | Issue 1

Get Your Guide to the Hottest Real Estate Market in the Nation

Seattle’s real estate market, both residential and commercial, has been cooking for a few years, making it tough for people who want to enter the  market, or even move within it. That’s where the 1st-ever Metropolist Magazine jumps in to inform.

Our 1st magazine is a 12-page guide packed with 2 main types of content, based on the last 6 months of market activity:

  1. Stories
  2. Data

Designed to easily inform and inspire you, this guide shares high-level data and professional insights about single-home, condominium and commercial sectors.

By neighborhood

Also, we’ve broken the data out by neighborhood provided by NWMLS data and Trendgraphix. So, if you’re living in Ballard or University District, head over to page 9.

Curious about what’s been going on in West Seattle or Belltown? Those are on page 10, along with loads of other neighborhoods and districts. Fremont? Queen Anne? Madison Park? Yes, yes & yes….and more.

The color coded legend at the top of page 9 will make it a snap for you to understand at a glance.

Our aim?

Keep it simple, but provide great information around a large investment that directly affects the most important things in your life… your home, your family and your future.

Making the most of it

For best strategies and results, we suggest you ask your trusted broker to walk through this guide for more personal insights based on your own home and investment goals.

Whether you’re buying, selling or just checking in on the market, it’s time to download your 12-page Metropolist Magazine now.