NAR Supports Making Investor Visa Regional Center Program Permanent

Foreign buyers and recent immigrants purchased 7% of the total U.S. residential market last year, paid a higher median price, and paid cash 55% of the time. Find resources in this section on how to diversify your market to include this global buyer.


For more information contact:
Jose Rivera Sinclair
Cell 609 338-8877


On Wednesday, December 7, 2011, the Senate Judiciary Committee held a hearing on the EB-5 Investor Visa Regional Center Program. The program allows foreign investors to obtain a visa to live in the U.S. by investing a certain amount of money through regional development centers approved by the U.S. Citizenship and Immigration Service (USCIS). NAR sent a letter in support of the program, as it provides a way to bring foreign investment into American communities that have suffered during the economic crisis.

The program has traditionally enjoyed broad support since its creation as a pilot program in 1992.
 NAR and many other business and industry groups support making the Regional Center Program a permanent part of the EB-5 Investor Visa Program.

Growth in Commercial Real Estate Markets Expected in 2012

Commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. “Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant’s market,” he said. “However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year.”

The commercial real estate market is expected to follow the general economy. “Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn’t ramp up, rent growth could potentially approach 7 percent over the next two years,” Yun said.

Looking at commercial vacancy rates from the fourth quarter of this year to the fourth quarter of 2012, NAR forecasts vacancies to decline 0.6 percentage point in the office sector, 0.4 point in industrial real estate, 0.8 point in the retail sector and 0.7 percentage point in the multifamily rental market.

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of 231 local market experts,¹ shows the broad industrial and office markets were relatively flat in the third quarter, in step with macroeconomic trends. The national economy continues to affect the sectors, with 92 percent of respondents reporting the economy is having a negative impact on their local market.

Even so, the SIOR index, measuring the impact of 10 variables, rose 0.6 percentage point to 55.5 in the third quarter, following a decline of 2.6 percentage points in the second quarter. In a split from the recent past, the industrial sector advanced while the office sector declined.

The SIOR index is notably below the level of 100 that represents a balanced marketplace, but had seen six consecutive quarterly improvements before the last two quarters. The last time the index reached the 100 level was in the third quarter of 2007.

Construction activity remains low, with 96 percent of respondents indicating that it is lower than normal; 88 percent said it is a buyers’ market in terms of development acquisitions. Prices are below construction costs in 83 percent of markets.

NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK² offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas were provided by REIS, Inc.,³ a source of commercial real estate performance information.

Office MarketsVacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.

The markets with the lowest office vacancy rates presently are Washington, D.C., with a vacancy rate of 9.3 percent; New York City, at 10.3 percent; and New Orleans, 12.8 percent.

After rising 1.4 percent in 2011, office rents are forecast to increase another 1.7 percent next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is projected to be 20.2 million square feet this year and 31.7 million in 2012.

Industrial MarketsIndustrial vacancy rates are projected to decline from 12.3 percent in the fourth quarter of this year to 11.7 percent in the fourth quarter of 2012.

The areas with the lowest industrial vacancy rates currently are Los Angeles, with a vacancy rate of 5.2 percent; Orange County, Calif., 5.7 percent; and Miami at 8.4 percent.

Annual industrial rent should decline 0.5 percent this year before rising 1.8 percent in 2012. Net absorption of industrial space nationally should be 62.0 million square feet this year and 41.2 million in 2012.

Retail MarketsRetail vacancy rates are likely to decline from 12.6 percent in the current quarter to 11.8 percent in the fourth quarter of 2012.

Presently, markets with the lowest retail vacancy rates include San Francisco, 3.7 percent; Long Island, N.Y., and Northern New Jersey, each at 5.7 percent; and San Jose, Calif., at 6.0 percent.

Average retail rent is seen to decline 0.2 percent this year, and then rise 0.7 percent in 2012. Net absorption of retail space is seen at 1.2 million square feet this year and 13.5 million in 2012.

Multifamily MarketsThe apartment rental market – multifamily housing – is expected to see vacancy rates drop from 5.0 percent in the fourth quarter to 4.3 percent in the fourth quarter of 2012; multifamily vacancy rates below 5 percent generally are considered a landlord’s market with demand justifying higher rents.

Areas with the lowest multifamily vacancy rates currently are Minneapolis, 2.4 percent; New York City, 2.7 percent; and Portland, Ore., at 2.8 percent.

Average apartment rent is projected to rise 2.5 percent this year and another 3.5 percent in 2012. Multifamily net absorption is likely to be 238,400 units this year and 126,600 in 2012.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.

The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.

Approximately 79,000 NAR and institute affiliate members specialize in commercial brokerage services, and an additional 171,000 members offer commercial real estate as a secondary business.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Market Trends Report

Clarifying the market expectations for the end of 2011

Problems with obtaining mortgages along with appraisal and inspection problems were mentioned as causes of settlement delays and cancellations.

• Appraisals continue to be a problem – Respondents report that appraisals are coming in lower in many cases than the contract. In addition, appraisals are frequently late, slowing down or sometimes even terminating the proposed transaction.
• Lending – Obtaining a loan is reported as difficult: excessive/unreasonable documentation requirements, delays, and rejections of buyers who would normally be considered credit worthy are mentioned as issues. Loans for condos are even more difficult, and frequently unavailable.
• The major economic issue: JOBS – Without jobs and with concerns about the expectation of continued employment, potential buyers just are not in the market. Realtors® reported substantial concern over the current economy as well as perceptions by potential buyers that the economy is not improving. Consumer confidence was reported as down substantially with major negative impacts on potential transactions.
• Prices – Problems of potential sellers currently upside down in their mortgages were mentioned as major market impediments as well as buyer concerns about declining prices.
• Foreclosures and short sales – Continued to be seen as major market negatives.
• Property condition – Mentioned as exceptionally important in the current market, along with anything that makes a first impression.
• All Real Estates Is Local – In some areas of the country the market was reported as improving – consistent with NAR’s reports that some major metropolitan areas are starting to recover.

General Market Trends

For the past three years the residential markets have been fluctuating – modest increases and decreases around the current level of sales. After declining from its peak, price has fluctuated substantially from month to month, but over the three year period has been relatively flat as reported by NAR and Case-Shiller. We essentially have a residential market that is moving sideways, influenced heavily by the approximate 33 percent of transactions that are distressed sales.

The major impediment to increased sales appears to be the overall jobs picture. The economy needs to add approximately 125,000 jobs on a monthly basis in order to stay even – and we need substantially more job additions every month in order to decrease unemployment. Right now the economy is experiencing very modest growth with job creation frequently below the 125,000 figure. It appears that the combination of financial problems (both domestic and worldwide) coupled with lowered consumer demand has decreased job creation. Most economists currently see the jobs problem as lasting in the neighborhood of four years.

Current price trends are probably based on a combination of market weaknesses and emotional concerns. At this time overall affordability is near an all-time high in terms of interest rates, price/income relationships, and percentage of income required to support a mortgage. In many cases home prices are reported as below reproduction costs. Current market prices appear to be a function of the weak employment picture and a tendency of markets to overshoot on the way up and undershoot on the way down.

Realtors’® responses in the past few months have basically indicated a sideways moving market. If economic conditions continue to deliver their forecasted modest improvement, then the market recovery will be slow. All real estate is local, so overall market performance will be uneven.

What Does This Mean To Realtors®?

Clients may be concerned about all the negative publicity regarding the housing markets: Interest rates and prices are very reasonable compared to history. NAR surveys indicate that the average homebuyer will stay in their home for seven to nine years, so weekly price fluctuations really are irrelevant. In addition, homeownership needs to be a focus on lifestyle and how one wants one’s family to live. Negative or sensational publicity sells newspapers. “Dog Bites Man” is on page 32 of a 28 page paper; “Man Bites Dog” is front page above the fold. It’s important not to get carried away by irrelevant or sensational headlines. Realtors® sell houses for families and individuals. Prudence in determining the amount to pay is important. However, over the longer run the likelihood of a home purchase proving to be a reasonable expenditure has tended to be higher rather than lower.

Obtaining a Mortgage Is Difficult: Financial institutions have tightened (many would say unreasonably tightened) their lending standards. Credit-worthy buyers are reported as frequently being rejected for loans. Loan rejections may be more related to the overly risky portfolio of loans that a bank has rather than the credit worthiness of the purchaser. Home buyers need to look to regional and community banks, and credit unions when appropriate.

The Market is Better than the News: NAR and Case-Shiller data show that home prices have fluctuated in a band or range for the past few years. Prices have definitely been a concern, but should recover as the job situation improves. The real estate markets tend to move with the economy; right now the economy is slow. However, most economists continue to project ongoing economic growth. In a growing economy real estate has usually done well. Most buyers hold their properties on average for approximately eight years or more, and economists are projecting substantial growth over that time frame. These are the reasons why we say now is a good time to buy. The stock market goes through periods when valuations are low—a buyer’s market. We seem to be in a similar type of market for housing.

Jose Rivera Sinclair

Balsley Losco Real Eatete

Governor Jim Florio

Discover Your Gold Mine In Atlantic City NJ, Get Rich Today!!!: Working with invertors, buyers and seller in a buy...

Discover Your Gold Mine In Atlantic City NJ, Get Rich Today!!!: Working with invertors, buyers and seller in a buy...: " Happiness is not a destination. It is a method of life. VI SION IS NOT WHAT YOU SEE WITH YOUR EYES. IT IS WHAT YOU 'SEE'..."

Working with invertors, buyers and seller in a buyer’s market



Happiness is not a destination. It is a method of life.

VI SION IS NOT WHAT YOU SEE WITH YOUR EYES. IT IS  WHAT YOU "SEE" FOR  YOURSELF IN THE FUTURE.

Things don’t get any easier no matter what market we are in and experience is crucial in any kind of real estate market but especially now with descending prices. Foreclosures are selling and a few investors are making money; what do they know that others don’t know. A lot of people lost confidence in the market and are scared to invest in real estate. A friend of mine was asking me how I keep myself so positive about investing in real estate. I told my friend Marc, knowledge is power. I am educating myself every day in the field,  looking at what inventory is available and what’s selling.

 I also interview many buyers and sellers in a weekly basis and I have a good understanding of what their needs and wants are. I deal with savvy and new investors daily and other realtors consult me and ask for my opinion of prices in certain neighborhoods where I do specialize. The best part of my team concept is that I have a network of contractors and real estate specialist that we work together with one goal in mind, which is to make sure our clients invest their money where they can make the most profit and in the least amount of time with limited risk.

The secret is to understand how much to pay for a property in order to make money. My team will also do consulting work which will help our buyers and sellers understand how much money is necessary to do the repairs and we will estimate the sales price once the property is fixed up. We take into consideration, market trends and how long it will take for the properties to be sold.  We consider all financial issues that we may encounter while purchasing these properties or selling them and how to deal with all the issues pertaining to the transaction.

My team is also familiar on how to obtain grants from the county to help first time home buyers to buy our products with as little money down as possible. Part of the process is to get buyers to start to improve their credit right away and giving them some easy to follow tips on getting them on the way to achieve their home ownership dreams.

We are also Small Business Administration Specialist. If your desire is to start your own business and purchase a commercial property, we can guide you through the process step by step. We have all the connections and know the right people to help you with your business plan.

Give yourself a chance to take part in an exciting adventure. Think outside the box, set some goals, have a vision and do it different. If you remain in the status quo, no new ideas, no incentives, no new opportunities will come to you. Be positive, better days are coming ahead.

In life “You have to swim thru the moat to get to the castle” When we meet with a seller, we give a realistic expectation on what needs to happen in order for them to accomplish their goal of selling their property. In a market with so much competition the way property is presented to buyers is very important, curb appeals is very necessary because buyers decide in the first five seconds if they like the property from the outside.

My team is familiar with the certificate of occupancy process and we make it easy on our buyers and sellers to go through this process. We walk all parties with all related inspections, settlement coordination and insurances. Buyer or seller do not need to worry or don’t need to have experience to go through this process. We make things easy for all and stress free.

 

There is a lot of money to be made in the next few years and my advice to anybody thinking to get started in this process is to hire the best team. Ask for references from previews investors, buyers and sellers on their experience with the Realtor you are going to choose. Do not let the opportunities go away, start your way to financial freedom now.

When you are a First time buyer, seller or investor it can be a difficult and nerve breaking process. We deal with all the phone calls and anxiety that the transaction creates on most people. In my team, we listen to all concerns; we are patient and take the time t o educate our clients. We tell you our honest and educated opinion regardless of the outcome. We will give you the confidence you need to be successful in today’s real estate market.



You will never find time for anything. If you want time,
you must make it.

Again, Knowledge is power, know your market, as well as how to market the properties to prospective buyers be aware of all the new technologies available today and get started with your financial freedom. Call us for a private consultation or any real estate questions and we will give you the proper advice or direct you to the proper sources to answer all your questions.





Atlantic City's revitalization is at hand

We propose the following. (see link)
If you agree with most of these, please forward the link via email to others
and/or post on your facebook, twitter, blog, etc -
Let's get the economy back on track
and work out our differences later

http://blogs.atlanticcityweekly.com/ac-central/2010/11/16/letter-to-the-editor-13-things-atlantic-city-needs/