Category Archives: Business Development

The Fundrise Blog — Where’s the Risk? Understanding the Phases of Real Estate

In real estate, there are essentially three phases of development:

ground up construction

value-add (rehab)

stabilized

These phases represent the natural lifecycle of a real estate deal. Each sequential phase has its own set of work and therefore risk associated with it. In other words, the more phases a project must get through, the greater the risk but also the greater the potential for growth.

via The Fundrise Blog — Where’s the Risk? Understanding the Phases of Real Estate.

 

JOBS Act – Excerpt from SEC Final Ruling for Capital Raising

JOBS Act

 

SECURITIES AND EXCHANGE COMMISSION

 

17 CFR Parts 230, 239 and 242

 

Release No. 33-9415; No. 34-69959; No. IA-3624; File No. S7-07-12

 

RIN 3235-AL34

 

Eliminating the Prohibition Against General Solicitation and General Advertising in

Rule 506 and Rule 144A Offerings

“We are adopting amendments to Rule 506 of Regulation D and Rule 144A under the Securities Act of 1933 to implement Section 201(a) of the Jumpstart Our Business Startups Act. The amendment to Rule 506 permits an issuer to engage in general solicitation or general advertising in offering and selling securities pursuant to Rule 506, provided that all purchasers of the securities are accredited investors and the issuer takes reasonable steps to verify that such purchasers are accredited investors”

More info via SEC, Final Ruling

 

SEC moves toward allowing crowdfunding stock offerings

Originally posted by: Matt Krantz, USA TODAY 3:18 p.m. EDT October 23, 2013

Up until now, crowdfunding has just been a way for consumers to give money to inventors concocting newfangled things ranging from Big Wheel bikes for grown-up and smartphones. But soon, it could become a way to actually invest in those companies.The Securities and Exchange Commission voted unanimously to propose rules that, for the first time, would allow investors to buy stock in companies over the Internet using a crowdfunding exchange. These rules could reinvent the way that companies raise money by allowing them to bypass the traditional costs of going public, which usually involved hiring costly investment bankers and accountants.

via SEC moves toward allowing crowdfunding stock offerings.

Creating Curb Appeal | Multi-Housing News Online

An interesting article regarding the process of designing an attractive curb appeal for multfamily properties.

 

By David Strosberg, President of Morningside USA

Designing a six-story apartment building that fills an entire block of an existing—and fairly small—suburban downtown is an undertaking that demands the utmost in thoughtful consideration and planning. Play it too safe and the bland design will be lost; be too cutting edge and the development will be uncomfortably out of place. So how does a developer strike just the right balance and create a building with curb appeal that is vibrant yet timeless? That is exactly the question we at Morningside Group had to answer when designing Wheaton 121 in Wheaton, Ill.

via Creating Curb Appeal | Multi-Housing News Online.

Building Your Real Estate Investing Team

Not having the right people on your team can become a drag on progress. It’s like trying to run a marathon with bricks in your pants. When this starts to happen, it is a sign that all is not well. Communication is the key; it can make all the difference.

“You wont find a mega-successful real estate investor without a carefully selected team helping them to make deals happen.  Learn who your key team members should be, what they bring to the team, and how to select the best.Every article linked from this list contains valuable information about the team members who will be instrumental in your success by helping you to leverage your time and knowledge and do not only more real estate investment deals, but more complicated deals as well.”

via Building Your Real Estate Investing Team.

Water in New Orleans: pushing a new approach to old problem | NOLA.com

A host of dignitaries, architects and public officials gathered Friday at the Port of New Orleans to unveil the Greater New Orleans Urban Water Plan, an effort to change the hearts and minds of a region that often sees water more as a threat than an asset.

Supporters of this new attitude described it as a way to stall the steady sinking of dry land and to manage flooding by keeping water inside — rather than outside — the levees that surround the Crescent City, East Jefferson and Plaquemines and St. Bernard parishes. But despite its aspirations, there remains the looming matter of the massive bill attached to it.

via Water in New Orleans: pushing a new approach to old problem | NOLA.com.

Most homebuilders are ‘not investable’ right now: Pros

“Uncertainty is no good for these stocks, and until we get some certainty around the taper and around mortgage rates, I think they’re just going to trade up and down and probably end up in the same place,” she said. “They’re tradable but not necessarily investable.”

For homebuilders, “the impact of rising interest rates will lead to slack demand, and that’s going to translate into slow earnings growth,” said Bob Wetenhall, managing director at RBC Capital Markets.

via Most homebuilders are ‘not investable’ right now: Pros.

SEC Lifts Mortgage Pool Advertising Ban : Juniper Capital

On July 10, 2013, federal regulators adopted a rule lifting a ban on mortgage pool advertising. The ruling, allows hedge funds to advertise to the general public to offer their securities, once the issuer takes reasonable steps to verify that investors are accredited. The ban on mortgage pool general advertising has been in effect since 1933, during the Great Depression.

The ruling is welcome news for fund managers, because it increases their ability to attract capital. Experts agree that now is an opportune time to set up a mortgage pool. The lifting of the ban should take effect by mid-September 2013, allowing many private funds and companies to raise private capital under Rule 506 to advertise and solicit accredited investors in their Reg D offering.

via SEC Lifts Mortgage Pool Advertising Ban : Juniper Capital.

Raising the Bar in Real Estate

Business-Integrity

 

In a world without flaws, people are honorable in their business dealings, and life in general. There is a spirit of abundance, open communication, and collaboration towards a common goal. There is good will, and good faith. Honorable people deal with each other honorably by talking straight about all material issues; they deal equitably with each other by seeking first to understand before seeking understanding, and establishing clear expectations with mutually agreed rules of engagement to nurture mutual respect, consideration, efficient business dealings, and eventually, mutual trust.

Under-Handed Tactics Benefit Nothing and No One

When people use under-handed tactics to gain an advantage; when they add questionable items in their agreements and avoid addressing the concerns or questions; when they expect someone to produce results or work without any assurance of compensation, they are operating in ways that are less-than-honorable; it is the mark of a fearful and protective soul with bad intentions.

In an industry where people will no doubt run into each other again over the course of doing business, it is worth the time and effort it takes to communicate in a manner that does not diminish the value of the other person. It’s all about addressing the tough issues with the intention of maintaining and developing fruitful business relationships over time.

Aspiring Towards a New Norm

It is the quality of our relationships–whether business or personal–that makes life rewarding. Good relationships are worth the effort; the rewards are beyond measure and they are self-evident. It is about collaboration, and not competition; it is about aspiring to a spirit of abundance, and not adversarialism. We can raise the bar in our industry; we can change the landscape from cut-throat to cooperation, and we can all still thrive regardless of any differences we might have. We can do this!