Ecommerce, or the act of buying or selling something online, has taken firm hold in today’s business world. Ecommerce giants like Amazon and China’s Alibaba have changed the way we shop and the way that businesses’ operations, sales and marketing departments perform. In fact, ecommerce has grown from a simple $12.48 transaction in 1994 – widely considered the very first true ecommerce transaction – to a business that is expected to exceed $27 trillion in 2020. With that in mind, it should come at no surprise that real estate would also be affected by the ecommerce trend. As ecommerce is only showing signs of growth, for anyone in the real estate game, it is necessary to understand the way that ecommerce is growing, enhancing and changing South Florida’s real estate market.
Logically, perhaps the biggest growth in real estate is happening in the commercial sector. While ecommerce companies continue to grow, so too does the need for facilities and distribution centers. In fact, ecommerce tenants now account for more than 16% of industrial activity in Miami and are on the path for continued growth. In Miami-Dade, America’s Gateway, the rise of ecommerce is moving at an even higher rate due to the increased ease of cross-border sales, more warehouse space and Miami International Airport, which is the United States’ fifth larges cargo airport and principal US/ Latin American shipping gateway.
In the residential sector, ecommerce gives buyers, sellers and investors access to properties in bigger and better ways with every search. With photos, floorplans, financing options, and so much more right at our fingertips, nearly everything can be done online today. In fact, some websites are partnering with real estate companies to offer “instant buying” programs, allowing sellers to solicit offers from the company. Ecommerce has also given foreign investors a huge opportunity to buy and sell in Miami’s market. According to the Miami Herald, between 2009 and 2017 more than 20% of Florida’s real estate buyers were foreign and they spent $8.7 billion dollars on residential properties in Miami-Dade, Broward and Palm Beach counties from August 2017 through July 2018, again a number that is predicted to rise. Out-of-state buyers play a part in the rise of ecommerce as well with buyers from New York, California, New Jersey and Illinois buying properties in Miami in droves last year.
While ecommerce opportunities continue to rise, the ease of starting your home search online is attractive, and one that many potential buyers and investors are commonly using. Growth in the commercial and investment sectors continue to bring increased business dollars to our area. However, at the end of the day, real estate is still a relationship business. Bridging the gap between the internet and the things that make a home truly special is an art that your Realtor® possesses that surpasses even the power of the internet.
Investing in real estate is a big commitment. However, for anyone seeking to build wealth, real estate offers one of the most lucrative and best ways to invest in your future. In fact, today the global real estate market is worth over $228 trillion, making it the most valuable asset on the planet. Whether you are a seasoned investor or just starting out, there are opportunities out there that are suitable for any taste or budget. And just as there are different types of houses to meet unique wants and needs, the options for investing in real estate are plenty and varied. How do you know where to start? Let’s take a look at some things to consider from a few of today’s most successful real estate investors.
Advice from Today’s Top Investment Players
One of real estate investing’s most inspiring stories is that of L.D. Stauffer. A true rags-to-riches story, Mr. Stauffer began his real estate investing career with no formal education, never attending junior high or high school, but embracing an entrepreneurial spirit instilled in him by his parents. Today, the real estate mogul is worth hundreds of millions of dollars. His biggest piece of advice for investors? “Your first deal will be the hardest. Don’t quit.”
Another successful investor who started from modest means and made it big in real estate is Ethan Roberts. In addition to investing in properties, Mr. Roberts has built a stellar reputation as a real estate writer, editor and investor whose work is frequently featured on Money.msn.com and Reuters.com. His top tips for real estate investors include: know your credit rating and understand your credit report, find the best mortgage broker, talk with other investors about local real estate and find a good Realtor® to help. “Above all, remember that like anything else, the harder you work and the more effort you put into your real estate investment business, the greater your ultimate reward will become over time.” – Ethan Roberts
Real estate mogul and business expert Barbara Corcoran began her real estate investing career with $1,000, which she borrowed to start a small company in New York City. Today, she is credited with building the largest residential real estate company in New York City and is a respected motivational speaker, author, cohost of Shark Tank and small business and real estate contributor on every major network. Among her most sage advice… “Perception creates reality. If you want to be successful in real estate you have to look bigger, better, stronger than the competition.”
With a little knowledge and research, and a lot of drive and determination, real estate investing is possible for anyone. If you are thinking about investing or are searching for your next investment property, I would love to help. Contact me today to learn more about your South Florida real estate investment opportunities.
Choosing the place that will be your next, or your forever, home is arguably one of life’s biggest decisions. Properties are much more than walls and windows, they come with exciting potential, emotional ties and serve as the setting for making memories. So, it should go without saying that choosing the right place to call home is an important one. For many people, that choice involves more than simply where your next home will be, but also how you approach the move. While buying and renting each have benefits and drawbacks, there is no shortage of opinions on which is best. And in an area like Miami, with its diverse neighborhoods and ever-changing real estate landscape, considering the various factors that influence your financial picture, wants and needs, home values and big market picture are all vital to your success.
When you are contemplating purchasing a home, the best thing to do is break it down to the basics. According to financial guru, Dave Ramsey, it comes down to this, “Are you financially ready to buy a home?” To determine that answer, ask yourself a few questions:
- “Are you out of debt?”
- “Do you have emergency savings that can cover three to six months of expenses?”
- “Do you have enough cash for a 10-20% down payment?”
- “Will your mortgage be 25% or less than your take-home income?”
- “Do you plan to stay in the same location for at least three years?”
Answering yes to these questions may mean you are ready to take the plunge and purchase a home. Owning a home has distinct advantages too… you are building wealth and investing in your future, home ownership comes with tax benefits, you have the freedom to paint, renovate and make your space your own and owning comes with the added benefit of knowing that the property is yours… all great benefits of owning vs. renting. However, there are advantages to renting as well. For anyone whose job requires relocation, for those working on paying off debt or for anyone who just isn’t quite ready to undertake the commitment of buying a home, renting is a valuable option… and you have a built-in maintenance plan that is the landlord’s responsibility rather than yours.
Understanding the Market
In Miami, some neighborhoods offer much better value than other for either buyers or renters. While in most cases, buying was a better financial option than renting according to the South Florida Business Journal, there are 19 neighborhoods where renting is the better option. While online resources are plenty, a professional Realtor® will always be the best resource when considering your options, understanding the market and finding the best properties to help you make the best, and most informed decision possible.
“The best investment on Earth is earth.” You may have heard this famous quote by renowned real estate investor, Louis Glickman, a Manhattan-based investor known for many highly lucrative deals across the U.S. and Canada, and his rather infamous attempt to buy and tear down Carnegie Hall. Thankfully, that deal didn’t happen but his belief that real estate is the best investment you can make has lived on. And you do not have to be a millionaire or seasoned investor to start your own portfolio or make your first real estate purchase and start building equity for your future.
Making your first, or fifteenth, real estate purchase can be a little intimidating, but real estate investing comes with a long list of benefits. From the obvious tax benefits and steady income received from an income-producing property to the ability to become your own boss or save for retirement, investing in real estate can go a long way towards building wealth and securing financial freedom.
So where should you start? As with anything, especially something that you are putting your hard-earned money into, successful real estate investing begins with research. Learn your local market in the greatest detail possible. You want to be sure you understand the factors that will affect the profitability of your investment. If you are purchasing a property to rent, be sure you understand the difference between what makes a property residential or commercial and keep in mind that commercial properties have different lending criteria to obtain a mortgage. Understand appreciation and depreciation. Seek out technologic solutions. From lending to analytics and marketing your property to connecting with neighbors, technology is firmly intertwined with all things real estate and many of today’s apps, programs, websites and crowdsourcing opportunities can enhance your investing experience.
But perhaps the most important decision you can make when considering a real estate investment is choosing the right agent. A professional Realtor® will be a great asset to you with any, or all, of these things. Choose an agent that you are comfortable with and one who you enjoy working with. Remember, you are building an important relationship here and they will be your biggest advocate on your investing journey.
Last weekend in Coconut Grove ,the Coconut Grove Food and Wine Festival treated foodies, wine enthusiasts and local festival goers to some of the world’s best food and drinks while socializing to a beautiful backdrop of Biscayne Bay. This annual event in the heart of Coconut Grove is one of the neighborhood’s most awaited events and this year did not disappoint.
Attendees enjoyed culinary samples from famous chefs and caterers as well as Coconut Grove’s newest, and Miami’s finest, restaurants. The progressive walking tour began at the Historical Woman’s Club of Coconut Grove with stops that included the famous Mutiny Hotel Pool, McFarlane Road and more throughout the beautiful Village District. Chef demos showcasing Miami’s best chefs also ran through the event at the Culinary Showcase.
With a variety of ticket options available starting at just $25, the festival is an affordable and fun day out with offers from General Admission to Exclusive VIP and VIP Couples again this year. Children under 12 are always free (but must be accompanied by a parent or guardian). Well-behaved pets on leashes were welcome too and even had a special event within the event, the PetSmart Pet Contest!
Restaurant Celebration Wine Board Festival Eat
Proceeds and donations benefited the Woman’s Club of Coconut Grove. Celebrating 128 years of community service, the Woman’s Club has been providing community support and service since 1891… five years before Miami became a city! The earliest cultural center for Coconut Grove, The Club held various theatre performances, literary readings, musical entertainment and fabulous parties, which continue today. A favorite venue for weddings and corporate and private events, The Club is the perfect blend of historical and modern, with old Florida charm and modern luxurious amenities.