August 25, 2017

BRICS: A Now Disappointing Reality Overshadows Exuberance.

Posted in Keith Knutsson, Real Estate tagged , , at 1:58 am by Keith Knutsson

The BRICS (an economic grouping of Brazil, Russia, India, China, South Africa) were regarded as the leading opportunities for financial investment and symbolized a shift away from the traditional affluent countries. While enormous growth has taken place, the present outlook has dimmed the light for these countries to dominate worldwide trade.

Brazil played a vital role in the enthusiasm behind the BRICS when the country secured the rights to host he football world cup and the Olympic Games. Additionally, Brazil’s democracy brought some comfort to the success of the BRIC acronym, showing virtues of western style capitalism. The outlook took a twist as the country finds itself in a recession through wasteful spending, and political instability. With the country’s top corporations (e.g. Petrobas) and political figures engulfed in scandals, Brazil is far away from the financial utopia it was once envisioned as.

Russia’s opportunities laid in reform to become a major, market led, economic power. While economic fortunes did initially improve under the leadership of Vladimir Putin, these gains have since stagnated. The average Russian has become poorer over the years. The lack of diversification in its markets leave Russia dependent upon the oil and gas industries for political and economic power while system-wide corruption fiddles with the overall efficiency of the country. Without widespread reform, Russia will not be able to shake its problems.

India has been developing rapidly since its independence in 1947, but the performance in key areas has slowed. The substantial population leads the government to cater for the basic needs of many individuals. Underwhelming performance on financial and economic predictions of­ India’s economy and standard of living have left it with large debt at large interest rates and with a bad credit rating. Tax revenues are being used to pay debt instead of investing in key sectors. Meanwhile many state-owned-enterprises struggle and others have already gone defunct, leaving India in an uncomfortable position. ­

China is the world’s second largest economy and the world’s most populous country. Unprecedented growth pushed expectations for China to lead the world in terms of GDP within the century. The slow down experienced in China and the government’s push to try and maintain high levels of growth is demonstrating itself as an increasingly uphill struggle. Policy making has growth-focus and Chinese money has been flooding into any global investment opportunities that are open to it, from real estate to government bonds to infrastructure projects.

South Africa has dropped into recession over two consecutive quarters in 2017. The country has several concerning issues moving forward: a lack of trust from investors further compounded by recent downgrades from the ratings agencies. Allegations of corruption and a chronically bad unemployment rate leaves the country in bad shape. Commodity prices are currently dictating the progress while the manufacturing, technology and services sectors lack in development.

Keith Knutsson of Integrale Advisors stated, “investors are naturally eager to find additional opportunities in untapped regions, but it’s important to focus on a market’s fundamentals before putting exuberant prices on its developments.”

 

 

 

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August 21, 2017

Eurozone Outlook Improves, Helped by Dutch and Italian Economies

Posted in Integrale Advisors LLC, Keith Knutsson tagged , at 1:10 am by Keith Knutsson

The eurozone’s recovery is happening quicker than predicted in the three months to June as a pickup that started in Germany and Spain has spread to other parts of the Euro area, fueling a vital comeback of the global economy.

On Wednesday, the EU’s statistics agency raised its measure of eurozone economic growth during the second quarter to 2.5% annually from a previous estimate of 2.3%, bringing it closer to that of the U.S., estimated to be 2.6%. This is an opportune moment for the Eurozone economy, especially since the U.S. is growing at a slower pace than expected as well as the setback already seen in the Chinese economy.

On the other hand, aiding the Eurozone rally is the Dutch economy, surging during the last fiscal period as exports jumped. In addition, Italy recorded its strongest six months since the second half of 2010.

“The eurozone recovery continues, and the economy seems to be expanding at a steady rate,” said Keith Knutsson of Integrale Advisors.

The Euro bloc’s strength during the first fiscal half of 2017 was a surprise to most economists, who had expected growth to slow in response to rising commodity prices and increased political uncertainty as citizens of France, Germany, and the Netherlands chose new governments. Nevertheless, the rise in energy prices didn’t last long and elections in the Netherlands and France displayed wins for pro-euro centrists, reducing the threat of a breakup of the Eurozone and easing the minds of investors.

Netherlands

The Netherlands, and the efforts of its newly formed government resulted in an economic surge in the second quarter. According to the Dutch statistics agency, GDP was 1.5% higher than in the past three months, averaging 3.8% over the time period. This was largely the result of a jump in exports. On Wednesday, the Netherlands Bureau for Economic Policy Analysis announced it now expects the economy to grow by more than 3% in 2017 as a whole, the first year in which it will have done so since the financial crisis of 2008.

Italy

The eurozone’s economic acceleration has also been supported by stronger growth in Italy. The peninsular nation recorded a third straight quarter in which GDP rose by 0.4%, signaling the fastest rate of expansion since the first three months of 2011. Nevertheless, Italy’s economy is still 6.5% smaller than it was before the financial crisis.

Overview

With countries such as Italy and the Netherlands strengthening their economic positions, the primary drivers of growth remain Germany and Spain. The strength of the eurozone has prompted economists to raise their forecasts. According to Consensus Economic, the average growth rate in the Eurozone for this year is projected to be 2%, up from the 1.4% expected in December. In addition, there are signs that the eurozone’s prosperity will aid other parts of Europe, closely connected by trade and financial interdependence.

July 18, 2017

The Inevitable Blockchain Integration

Posted in Keith Knutsson, Real Estate tagged , , at 1:51 am by Keith Knutsson

What is blockchain? To give some background, the term is being heard more and more around the financial realms. The most notable application of it is through the cryptocurrency, Bitcoin, which is only one of 700 different applications for the technology. Blockchain is a type of decentralized database that supports and provides a constantly expanding inventory of records, known as termed blocks, which cannot be adjusted or altered. Each block of information contains a timestamp and link to a previous produced block in the blockchain. This type of creation operates as a public ledger for all transactions, allowing users to connect to the network, report new transactions and verify transactions. Blockchain offers a better way to appropriately identify the worth and value of a something by tracking the history of transactions and where and what that item has been traded for.

 Many still do not understand the magnitude of which blockchain technology can be implemented in our daily lives. Specifically, in the commercial real estate (CRE) industry the impact could be vast. Information concerning market comparisons, buyers, sellers, reporting, title work, and vendor work for individual properties. The benefits include immense time savings, limitation of waste and transparency. According to Cushman & Wakefield, once “adopted by the CRE industry, blockchain technology will make leasing, buying, and selling, of property much more informed, fluid and efficient.”

Upon the digitation of real estate contracts, each commercial property will have its own unique “digital signature” with details of rental performance. Transaction time will be completed in a matter of seconds rather than days, weeks, or months. After concluding a deal, the payment process between tenants and landlords would be more easily facilitated. Imagine trading property similar to buying ‘stocks with blockchain,’ properties in bustling markets could trade hands many times in a single week, depending on investors strategies.  

 A great example of blockchain eliminating problems of the “old” is through property titles that are usually susceptible to fraud and costively administrative and labor fees, by having publicly-accessible ledgers.

 This evolution of real estate is being explored in other countries, such as, in Sweden, the government land registry, testing land title transfers on blockchain. “We could also begin to see this technology implemented in cross-border transactions,” says Keith Knutsson of Integrale Advisors.

June 24, 2017

Cleaner energy, smarter solutions, and responsible investment

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate, Uncategorized tagged , , at 2:33 am by Keith Knutsson

“Renewable energy is starting to play a major role in decarbonizing our economy” said Keith Knutsson of Integrale Advisors.

Green Investment is gaining traction as shareholders pressure companies to move away from traditional fossil fuel industries and into companies aiming to reduce the global environmental impact. In most regions of the world, renewable energy is considered to be more cost effective than traditional coal. Solar prices have dropped by more than 60% since 2009 and the trend is expected to continue, opening the industry to a broader consumer base. The cost of large scale solar installation will drop by a further 25% by 2025, according to the International Energy Agency.

Renewable energy produces lower emissions than traditional energy sources and can help organizations achieve their environmental and emissions targets. If a company is willing to go in the direction of clean energy, there is typically additional financial support provided by local and state governments.  Some of the most popular forms of renewable energy include solar, wind, biomass, and geothermal heat. Solar energy is the most popular due to its low installation costs, low maintenance, and good return on investment. Here are some things to look for when considering renewable energy sources:

Suitability

When installing solar panels, one must assess the condition of the roof, structural conditions, site alignment, and electrical configuration. For wind turbines, weather conditions at the site, zoning requirements, and the availability of land for development must be considered.

Property Rights

Properties in commercial business districts have building tenancy restrictions and lease agreements, sometimes restricting structural or cosmetic change. Furthermore, tenants who wish to install onsite renewable energy may not be able to do this due to their current lease arrangements with their landlords.

Financing

There is currently a multitude of financing options available for renewable energy projects. By switching to renewable energy, a company may benefit from a range of tax incentives, grants, and positive public relations.

June 15, 2017

The Future of Travel is Changing the Real Estate Market

Posted in Keith Knutsson, Real Estate tagged , , , at 7:41 pm by Keith Knutsson

The world of travel is rapidly changing.  However, as we head towards the future, the way that we travel will undergo a further wave of change. As mobile phone capabilities are being increased, new technology makes traveling easier and more frequent. The future of travel will be revolutionized by technologies and applications that allow us to experience new destinations in new ways.

Modern technological advancements are especially prevalent in smartphones. Travel Apps are now allowing users to listen to audio when on a walk in a new location. The audio includes historical information, accounts from locals, and recommendations on where to dine. However, these “tour apps” are not alone in revolutionizing the travel industry.

The emergence of the vacation rental industry and its success provides insight on the future of travel. Companies such as “Airbnb” are offering travelers alternatives to hotels, at a much lower price. Other companies specializing in vacation rentals include but are not limited to; Tripping.com, FlipKey, HomeAway, VRBO, and HouseTrip.

“More and more people are making investments into properties that could be used as vacation rentals” said Keith Knutsson of Integrale Advisors. More competition in the industry is great for consumers, providing more freedom to choose which properties and price fits best. Here is a look at a few companies that are revolutionizing the vacation rental industry;

·       Tripping.com

Founded in 2009, Tripping.com is a leading search engine for vacation rentals with over eight million properties in 150,000 destinations. The company was the first vacation rental website to feature online booking. Tripping.com collaborates with other companies in the industry, allowing information to be shared across websites.

·       FlipKey

FlipKey provides clients domestic and international properties, with approximately 300,000 listings in over 160 countries. The company offers the ability to browse listings based on certain parameters such as cost, number of rooms, luxury, and amenities.

·       HomeAway

HomeAway has been dominating the vacation rental industry for many years now. The company continues to top the list of Google searches for most popular rental sites. It is also the parent company to other successful vacation rental sites such as VRBO and VacationRentals.com. HomeAway property owners can make upwards of $50,000 annually per listing.

The vacation rental industry has been growing faster than ever before. Approximately one fifth of U.S. Lodging market revenue is now coming from vacation rentals. People are beginning to focus real estate investment into properties with the potential to generate profits from travelers and getaway-seekers. The following benefits both owners and consumers by creating an environment where supply and demand for rental properties is happily met.

June 12, 2017

Integrale Advisors’ Keith Knutsson Looks at Who are the Disruptors?

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate tagged , , at 1:51 am by Keith Knutsson

In an age when consumers go online to order groceries, download music and book plane tickets, it’s no surprise they do the same at the start of their house hunt.

That’s the route Julia, 30, and her husband took when planning their move from Atlanta to Manhattan last summer. Knowing they wanted a two to three-bedroom home with a doorman, washer/dryer and gym in the building, they plugged their needs into several real estate search engines and explored from afar. Once they got a feel for what was available and their move-out date became more of a reality, they contacted a real estate agent.

  “Because we had not found the right fit, we asked him to step in and show us some things we may not have seen, or that were coming on the market soon and we wouldn’t have seen online,” Julia said.

This is not news to agents, who say clients often do extensive homework online before seeing physical properties. “You have a much more well-informed buyer,” said KJ Kohlmyer, an agent with Zephyr Real Estate in San Francisco and member of the National Association of Realtors®. “People do a lot of research.” In fact, 89 percent of prospective homebuyers use a mobile search engine at the beginning of their research, and throughout the process, according to a National Association of Realtors® study.

Online house hunting is just one of the myriad forces shaping today’s housing market. Technological advances have encouraged the growth of apps and websites that equip consumers with more information. And social and economic changes are driving a desire for urban living, walkability and housing that accommodates a quick commute to work.

 Though today’s house hunters are well-informed, a real estate professional can help them navigate the process more easily than they would on their own, Kohlmyer said. “A good agent can bring everything to the table,” he said. “There can be Byzantine-like local aspects that are not widely known.”

 Today’s homebuyers value “experiences over things,” said Jonathan Miller, president and chief executive of Miller Samuel, a real estate appraiser and consulting firm. “They are in love with the new urbanism trend that has been in place since the financial crisis began. Urban living, walkability and close-knit communities define the experience many in this generation aspire to be part of.”

 Homebuyers today are seeking both urban conveniences and a sense of community—but price pressures and a desire for more living space are motivating them to look outside cities for this holistic living experience. Home prices in the Boston metro area have increased from $389,000 to $421,000 in two years. It’s a similar story in Denver, where prices jumped from $310,000 to $384,000.

 “Beginning in 2015, we began to observe a flight to the suburbs in urban markets as this generation grew impatient with falling affordability,” Miller said. “Renters are becoming first-time buyers, and trade-up buyers are being drawn to the suburbs.”

 These complex dynamics are driving changes to suburban enclaves that were once entirely dominated by automobiles and set apart from downtown areas and the workplace. Many suburbs are reducing auto dependence by introducing retail and office spaces into residential neighborhoods; rerouting traffic patterns; constructing sidewalks and trails; and incorporating more public transit options.

 Suburbs are increasingly offering conveniences and the sense of community that goes with having retail outlets and restaurants nearby. A National Association of Realtors® survey found that 58 percent of respondents favor walkable, mixed-use neighborhoods over those that require more driving between home, work and recreation.

 New, multi-use, pedestrian-friendly communities are popping up in places like Waverly in Charlotte, N.C., which offers 400 apartments and 150 single-family and townhomes anchored by a 40,000 square-foot grocery store and a 250,000 square-foot retail complex.

 Retrofitted older suburbs are also being transformed. Mashpee Commons in Massachusetts is a mixed-use, walkable community that was built on the site of a former shopping center.

 Sonia, 31, and her husband decided to buy a home outside New York City last year. Since they both worked in Manhattan, they were looking for areas that were easily accessible, and a town that was walkable. They settled in picturesque Pound Ridge, minutes from Stamford, CT.

 “We were looking for towns that had an upstate feel but were easily accessible to New York City,” she said.

It’s clear that financial necessity and love of urban conveniences are driving millennials to the suburbs. “This generation is redefining the traditional suburban housing market,” Miller said. “And they are just getting started. Pent-up demand will likely be unleashed on the suburbs over the coming years.”

May 23, 2017

The Gig Economy is Changing the Corporate Landscape

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate tagged , , , , at 2:14 am by Keith Knutsson

According to a survey, 85% of people are dissatisfied with their jobs (Cushman and Wakefield, 2017). “Flexibility is the driving force today for choosing a dream workplace” said Keith Knutsson of Integrale Advisors. Free communication channels and globalized networks, have allowed for the fast growing “Gig Economy,” which consists of 20-30% of the working population worldwide.

The term “Gig workers” refers to consultants, contractors, or temp workers. The following professions are changing the corporate landscape. Nowadays, companies can easily hire non-permanent employees (temps) on an as needed basis. These “independent workers” are enjoying a balance of freedom, flexibility, and work life. However, there are some consequences. Gig workers lack healthcare benefits and job security.  Nevertheless, it is predicted that 40% of the global workforce will be independent contractors and ‘solopreneurs’ by 2020.

The impact of the gig economy will have a direct effect on workplace of the future. Globalization of work, global trade, and technology shifts have contributed to the rising gig economy.

Reasons for workers to choose independent work:

  • Ability to turn down projects if uninterested.
  • Freedom to choose type of work.
  • Flexibility; when and where to work.
  • Versatility; working on multiple projects for different clients.

Reasons for companies to hire independent workers:

  • Lower office space costs.
  • Reduced cost of healthcare and benefits.
  • Ability to bring in skilled workers/expertise when needed.
  • Scalability; ability to hire workers when necessary.

Analyzing the effect on the corporate environment: 

Firms are redesigning their offices to provide fewer private offices and cubicles, and more open and collaborative space. There are two goals: 1) provide workplaces that facilitate collaboration and 2) decrease the firm’s overall rent expenses by providing less physical space per worker.

Companies have leased several million square feet of space in the past few years and that trend is expected to continue with the growth of the “gig” economy. This economy also impacts traditional corporate culture and the engagement of employees. When all employees are engaged, they are more likely to commit themselves to company goals and achieve higher levels of productions.

According to analysis by Cushman and Wakefield, “65% of today’s school students will be doing jobs that don’t exist yet.” In addition to millennials rejecting traditional employment and choosing to work independently, artificial intelligence and robotics will also be more prevalent in the future. Businesses that will be successful in the future will be those who encourage adapt well to change.

May 22, 2017

US retreat from global financial system

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate tagged , , , , at 3:47 am by Keith Knutsson

Borrowers now have access to the savings of the entire world if they can show lenders that they can make effective use of their money. It should also mean that lenders can search, on a global level for the opportunities that give them the best return for the risk with which they are most comfortable. The following should benefit both lenders and borrowers.

For borrowers, the cost of a capital loan should be lower than that on offer in smaller domestic markets. On the other hand, creditors’ returns should be far more attractive since they have more options for where to put their money to work. Since the global financial crises, there has been some negativity in the air. This negativity has greatly increased in recent months. Some regulators and financiers moved away from embracing globalization, further claiming that it led to the crisis. However, there is potential for a turnaround; especially if less developed nations and financial markets can improve the way they allocate capital.

Leading up to the crisis, capital inflows and outflows moved in obstructive ways. It transitioned from higher growth emerging markets to slower growth developed markets. Much of these flows went into US Treasuries to strengthen reserves in the aftermath of the 1997-1998 crises. Those capital flows to the US and to the dollar, the world’s reserve currency, meant that Americans could pay for larger properties with money that was cheaper than it once was. European banks continued to borrow those dollars in wholesale markets rather than relying on deposits to fund their own activities. This resulted in what international bankers are calling “the transatlantic banking glut”.

Globalization, all in all, meant poor capital allocation of debt and a huge accumulation of unsustainable debt. This resulted in a rolling crises as investors sought high returns in short-term securities, whether in emerging markets, the US, or Europe.

Central banks in developed nations responded to the crises by implementing easy monetary policies. Thus, triggering an artificial rise of asset prices, which led to an increase in capital outflows into emerging markets as yields were driven down at home. “The Fed should remember that when it makes monetary policy it should take into consideration the impact on the rest of the world,” stated Gao Xiqing, the former head of the Chinese sovereign wealth fund. A decline in globalization would result in a retreat from the dollar and from the US-centralized global financial system. The U.S. had advocated for policies regarding this that would in effect extend US control beyond its shores, especially as the new administration is attempting to limit terror financing and money laundering. The rules have become so burdensome for foreign banks that some have closed their US branches.

There is no better depiction of US policies putting a strain on the global economy than in recent Federal Reserve Board actions regarding “swap lines.” A swap line is another term for a temporary reciprocal currency arrangement between central banks. The central banks of two nations agree to keep a supply of each country’s currency available to trade to the other central bank at the going exchange rate. The Fed maintains lines with Japan, the Eurozone, the UK, Switzerland and Canada.

As the US steps back, we see an emergence of other developed nations are filling the role. China, the economic powerhouse, is taking a greater role on the global financial stage. The rest of the world is trying to circumvent the uncertainty of central bankers, US regulators, and politicians.

Although large companies will always have access to global markets, cross-border investment has become increasingly more difficult due to protectionist measures. As a result, this is expected to produce a smaller demand for capital intensive goods and services. If companies are forced to look domestically for funding, that could be a good thing if governments are more effective in making sure capital is properly allocated. However, there is currently little evidence this will be the case.

Submitted by Keith Knutsson

December 13, 2016

Should You Invest in Commercial or Residential Properties?

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate tagged , , , , , , , , , , , , , , , , at 12:12 am by Keith Knutsson

Real estate is a great place to invest. One of the first questions I, Keith Knutsson, get asked by potential investors is commercial or residential real estate? There are pros and cons to both ventures, so here are some tips to help you decide which one suits your personality, talents, and goals.

Commercial Real Estate

When most people think about investing in real estate, their minds immediately jump to residential. Commercial real estate has additional benefits however, that can really increase your net worth. The biggest benefits to discuss are more financing options, less competition, and a more favorable valuation.

  • More financing options. While there are plenty of traditional, hard-money lenders to get a mortgage payment from for residential loans, there aren’t a lot of other options for financing. With commercial real estate, there are plenty of other sources, like small private equity firms, joint venture partners, and even other commercial real estate investors you can partner with to raise the amount of capital needed. Access to more money means that you can get a higher rate of return. It’s the adage “spend more to make more”.
  • Not as much competition. For some reason, most people try to make a name for themselves in real estate through the residential route. That means that commercial real estate is an area of real estate with less competition from other investors. This is especially true if you are shopping for smaller commercial opportunities. Most big time commercial investors are going after properties worth more than $5 million, and anything less than that is out of reach for most residential investors. This is a great niche for someone with the work ethic to make a name for themselves.
  • A More Favorable Valuation. The main way that residential real estate is valued is by basing it off square footage, rooms, bathrooms, upgrades, lot size, etc. compared to other homes in the area. This method makes sense for this sector, but it can hurt your bottom line when the market isn’t performing well. With commercial buildings, the valuation is based off current leasing/renting income. In simple terms, the amount of money being generated from the property is how much it is worth. Small improvements and great marketing can increase the value of commercial property easily, unlike in the residential realm. Therefore, it’s easier to make more money from commercial properties.

This isn’t to say that commercial real estate is an easy, definite way to make millions of dollars. If it were that easy, everyone would do it. The main downfalls to investing in commercial real estate are more risks, high costs, and zoning laws.

  • More Risk. Commercial properties see a lot more traffic from customers or residents, parking lots, and possibly multiple businesses running out of one location. Insurance costs are much higher because of all the risks involved with safeguarding against accidents and injuries to any of these people or the property.
  • Higher Costs. While most investors know that the money upfront is going to be higher in commercial real estate than residential, the maintenance bills are also larger. It costs more to maintain professional looking businesses, and repairs have a higher price tag. Just a few examples could include a new roof, multiple furnaces break, one accident causes various damage in more than one apartment in the building. There are all kinds of costs that arise during commercial that are different and require a lot of money as the investor. All repairs must be done professionally too, so there aren’t quick do-it-yourself fixes for these problems. It also costs more to hold on to a vacant office space than a vacant house.
  • Zoning Laws. The government is very interested in maintaining zoning and regulations for commercial areas. Buying a building in the manufacturing area or an apartment building, all the uses you intend the building for is already decided. If you intend to lease the space out to another business, your pool of possible renters is limited. Depending on the city, it is possible to change some of the requirements in zoning, but it requires a lot of work and usually a legal team.

Residential Real Estate

Residential real estate is not a bad way to make money as an investor. There are definitely still benefits to going this route over the commercial arena. The biggest three benefits to going the residential path are more availability, the option to flip, and less money required to get started.

  • More Availability. There are more homes to choose from when you start looking for an investment property. Commercial real estate properties and buildings are not always available, especially if you’re looking in a certain part of town. Even when new residential neighborhoods start popping up, the homes in older neighborhoods are still desired. The turn-around time for houses are much faster, so if you’re looking to find a home in a certain area, one will show up if you wait long enough.
  • Option to Flip. If you want to make money flipping houses rather than holding and renting, you still have that option. You can flip a house, sell it, and be done with it much faster than other real estate ventures. While the money required to do repairs is an issue for some investors, it is usually recouped at selling time, plus a little more.
  • Less money required. A down payment is really all you need to start. While there are more financing options for commercial real estate, to start can be difficult. To buy the first residential investment, you need to qualify for the amount and have a down payment. The qualification process is usually easier because having a renter pay the mortgage payment each month isn’t too hard to find.

There are three fairly well known hardships to owning residential properties as an investor; dealing with bad renters, a variable market, and bringing in property managers.

  • Bad renters. While most people renting a home are going to treat it well, the fact is it isn’t their house. Some people see this as an opportunity to not have to take care of it, and in some cases, trash it. The costs can really add up to fix problems that bad renters can cause. If neighbors start getting bothered by renters, that causes an entire other set of problems.
  • Variable market. Ideally, most investors want to buy when the housing prices are down and then sell when they are highest. This is harder to do though since home prices change slower and less consistently. As a Real estate investor, and CEO of Integrale Advisors LLC, I, Keith Knutsson, see how there are predictable cycles for real estate, but times always vary on how long each cycle lasts. This makes investing trickier because it’s always changing.
  • Bringing in property managers. Managing multiple properties is hard for one person to do. It’s also difficult to be a great real estate investor when you don’t live around the properties and cann’t check on them often. The best way to handle both of these scenarios is to hire a property manager. While this makes life easier for you, it cuts into your profits and requires trusting a lot in someone else.

As you can see, investing in real estate is a great option whether you choose commercial or residential. Knowing your end goals and ability to handle different situations, you have two very different paths to take if you decide real estate investing is right for you.

October 23, 2016

Real Estate Terms Every Investor Should Know

Posted in Integrale Advisors LLC, Keith Knutsson, Real Estate tagged , , , , , , , at 11:38 pm by Keith Knutsson

realEstateTerms.png

If you are interested in investing in real estate, there are several-key terms that you should have a complete knowledge of. These are necessary terms if you want to understand the ins and outs of the property you are looking at to purchase. Both real estate and investing are industries that come with their own specialized jargon. In order to make lucrative purchases, it is crucial to understand the basics related to the industry.

Keith Knutsson explains the key terms to help you make a successful transaction. This is a basic list that will help you get started and understand the bigger picture: Read the rest of this entry »

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