In 2017, 614,000 houses were sold in the U.S. In total, US real estate transaction volume hit $467B in 2017. But who are some of the hottest young agents brokering these deals? Here are five of the top realtors under 35.
1. Ryan Serhant
The NYC-based power broker and author of the bestseller “Sell It Like Serhant” closed deals that topped $838M last year. Ryan has built one of New York’s top real estate firms, raking in millions every year.
He initially entered the housing market in 2008, when the real estate space was seeing one of its biggest collapse. In his first year, he made just about $9,000 and decided to stick it out through the hurdles that came his way.
“Never in my wildest dreams did I think that 10 years later I would do [$100 million] in deals over spotty Wi-Fi while on a safari in South Africa like I did last week,” he told CNBC in April.
Jon Tetrault and his partner at Slocum Realty snagged deals worth $24M last year and over $13M till date this year.
For the rising realtor, his success largely hinged on networking and sheer hard work.
“Always talk to people, and if that doesn’t work, talk to more people. Real estate is about building connections because that is what drives referrals. Research your region and look for the local chamber of commerce or any volunteer boards that you can join—these are all great opportunities to expand your network,” he says.
“Put yourself in front of people. Listen to other agents and what they say, jump in their car when they go to appointments. When you’re first starting out, you can learn so much from the stories and experiences of veteran realtors,” he tells us.
4. Oren Alexander & Tal Alexander
The brothers, who are with Douglas Elliman, have won over some of the biggest clients across the globe. Much to their credit, the team sold a modern townhouse in New York for a whopping $100M–a sale pitched as the priciest ever in New York’s history of commercial townhouse sales.
Oren and Tal also closed the deal for Miami’s most expensive mansion, apart from handling a string of other high-end, ultra-luxury sales.
5. Brian Erhahon
This young London-born rockstar barely has hit 30 (he’s 29), but he’s already running a 275-agent team. Working out Tustin, CA, Brian’s team has a transaction volume of $187.6M. He also recently earned a spot on Realtor Magazine’s 2018 list of 30 Under 30 Honorees.
In a competitive, cutthroat business, Brian has a unique spin on doing business. When he does events, all agents are welcome—even from competing companies, which draw up to 200 attendees. “We’re open and transparent and just like to collaborate,” Erhahon told Realtor Magazine.
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At trillions of dollars, it’s no secret that the real estate market has been one of primary resources for the world’s wealthy to pad their accounts.
But contrary to popular opinion, real estate is still a desirable asset class for entrepreneurs with smaller bank accounts. Here are five ways to fund your first real estate investment—even if you’re low on cash.
1. Know Your Numbers
Remember, while property values fluctuate, your rental income is locked into a leasing agreement—and so is your valuation.
That means, as long as the numbers work, the market can do what it wants. Asset-based lenders (B2R Finance is one) lend primarily on the cash flow of the property, rather than personal income like more traditional lenders.
For instance: If you have a lead on a four-family property that’s fully leased and cash-flowing, you can finance up to 80% of the property’s value.
Or translated in layman’s speak: You don’t really need a credit score or a great job to get financing.
If you’re looking to garner the benefits from real estate investments without the hiccups related to the market’s expenses, real estate crowdfunding platforms are a great way to lock in your investment.
Apart from perks like hedging your money against inflation or high interest rates, real estate crowdfunding comes packed with some major tax benefits. Here are five platforms that generate around 8% average returns annually:
With assets worth over $1.4 billion to their credit, Fundrise has channeled investments into construction homes and loans, office buildings, and multifamily developments, amongst others. An investor can expect dividend yields that average 8% for an annual fee that varies between 0.15-1%.
The platform is tailored largely for the social conscious and impact investors. It invests in projects that include green buildings, eco-friendly materials, and affordable housing. One factor that differentiates Small Change from other platforms is its no-fee policy – the company instead splits profits, pegged at over 8% annually, with its sponsors.
Although the minimum investment amount is pitched at $5,000, the platform has various offerings for the investor to choose from – be it equity or debt, smaller commercial properties or residential properties. RealtyShares’ payout can be either monthly or quarterly, and returns can be anywhere between 8-20% for a fee of 1% on equity and a 2% interest rate on debt.
With a portfolio that’s worth over $1 billion, the platform has exposure to shopping centers, hotels, real estate loans, commercial facilities and apartment buildings. One of their more popular stake is a 15% share in the Hard Rock Hotel Palm Springs. Investment periods range from six months to a year and enjoy an estimated 8.5% returns annually.
It is no secret that crowdfunding real estate projects have gained huge popularity, and the numbers throw light on this – nearly $2.5 billion worth of investments in the real estate market are through crowdfunded platforms. There’s tremendous growth projected for the industry, which means individuals gain access to more opportunities for investments and improved portfolio diversification.
In the past, vacation rental owners had to perform the necessary maintenance tasks and market the properties to find guests or pay someone in the locality to do so on their behalf.
Bookings were low and the cost of maintaining the vacation homes was high. Thankfully, the firms that manage vacation rentals are using new technologies to eliminate these issues and deliver a comprehensive service on a high level that the vacation rental industry has not seen.
Many travelers are avoiding staying in hotels in favor of vacation rentals.
Why Vacation Rentals?
Some of the benefits of vacation rentals include:
Variety – Vacation rentals offer different decor, amenities and views among other things. Travelers select their own vacation rentals and preferences based on their budget and how they want to define their vacation such as close to the beach or a golf course among other locations.
Additional space – Vacation rentals are more spacious than hotels and are therefore popular with people traveling with their families.
Comforts of home – Vacation rentals provide the comforts of home and some of the things that a typical home does not have. There are multiple bedrooms, comfortable living rooms and adequate space to sprawl out. Vacation rentals are more comfortable than staying in the bedroom of another person like with Airbnb.
Privacy – Vacation rentals have private entrances and private balconies. Therefore, patrons do not have to walk through the lobby after returning to their unit.
Cost effective – Since vacation rentals are spacious, families often rent them together. This makes the homes more cost effective than hotels.
Easy booking and check out – Technology such as online payment platforms enable guests to save time. They do not have to wait in line to check in or out.
Improving Vacation Rental Technology
Technology has played a huge part in making the short-term rental market grow. Online listing firms such as Airbnb make it easier for guests to book the home they want to stay in.
New technology-driven management firms are also making it easier for homeowners to maintain and market their vacation rentals. As a vacation homeowner, you can easily manage your property by using vacation rental management software.
With this software, you can manage rental channels. These include HomeAway, Expedia, and Airbnb using one app or platform to reduce management time and increase profits. This means that you can manage your property without having to enlist the services of a professional management firm.
Are Vacation Rentals Really Profitable?
Investing in vacation rentals is an excellent way to earn passive income.
A survey done by HomeAway, which is a short-term rental marketplace, found something interesting. People who rent out second homes earn more than 33,000 dollars annually in rental revenue. On the other hand, at Airbnb, the average vacation rental owner collects yearly rental revenue of about 11,000 dollars.
Most of the vacation rental owners using the Airbnb platform don’t perform as well. They may only rent out only a single bedroom or rent out their homes irregularly. They do not treat their homes as true vacation rentals.
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These figures are an indication that vacation rentals are profitable. They are popular with people renting properties for a short period. They can also outpace long-term rental properties when it comes to potential rental income. To increase your chances of earning higher rental revenue, you should do the following things:
Do the Math
It is not that straightforward to figure out the amount of money your vacation home can bring in. However, online tools can enable you to calculate the potential cash flow to your property.
You can use these tools to calculate the average daily rental rates, revenue, and occupancy rates. By using these projections, you can then subtract items such as interest, PITI, management fees and maintenance expenses. Then you’ll get a cash flow forecast.
Evaluate the Location
The other factor that will determine the amount you will earn as rental revenue is the location. If you buy a vacation home, which is close to a popular destination like a ski resort or beach community, then it is likely that it will bring in a higher rental income. An excellent location close to a major airport or a vacation spot that people visit year round will have the best impact.
Assess the Scene
Apart from the accessibility and popularity of a destination, you also need to consider the setting. For instance, it is more cost effective to invest in a vacation home located in the mountains compared to a beachfront vacation home. However, such a home is not likely to bring in as much income as a beachfront property can.
The peak season for vacation rentals lasts about 12 weeks.
The trick is trying to rent the vacation home during the off-peak periods or when you do not want to live in the house. Try your best to keep your vacation home occupied by advertising it on platforms like HomeAway and Airbnb. You can even seek advice on the best ways to keep a property occupied from a property management firm that manages vacation homes.
Set the Price Right
To maximize occupancy, you should price your vacation home well. You can price your propertyslightly lower than similar properties so that it will be occupied more frequently. Furthermore, you should keep an eye on events like festivals and conventions that occur close to the location of your vacation home. When the demand is high, take advantage of it and adjust your rental charges accordingly so that you will not miss out on revenue.
Vacation homes are unique in that they are both an investment and a lifestyle upgrade. While they perform equally as well as conventional rental properties, they offer the benefit of having a place to stay for your own vacations.
A vacation home can bring in a good return on investment if you can keep it rented out most of the year. If you hold the vacation rental for many years, then you will make a return, which is comparable to or greater than you would have made if you had invested in stocks.